Government’s Rising Expenditure on Litigations in India

In recent years, the Government of India has increased its spending on legal litigations. Over the last decade, more than Rs 400 crore has been allocated to contest court cases. The financial year 2023-24 saw the government spend Rs 66 crore, marking an increase from the previous year. This trend marks the growing legal challenges faced by the government.

Litigation Expenditure Overview

The government’s expenditure on litigations has shown a steady increase since 2014-15. In that year, the cost was approximately Rs 26.64 crore. By 2015-16, this amount rose to Rs 37.43 crore. The total expenditure from 2014-15 to 2023-24 surpassed Rs 409 crore. This rise indicates an escalating need for legal representation and the complexity of cases involving the government.

Pending Cases Statistics

As of now, the government is involved in nearly seven lakh cases across various courts. The Ministry of Finance is a party in about 1.9 lakh of these cases. This data was provided by Law Minister Arjun Ram Meghwal, denoting the extensive legal obligations of the government. The volume of pending cases suggests a backlog that could affect the efficiency of the judicial system.

Impact of Covid-19

The Covid-19 pandemic impacted litigation expenditure, with a noticeable dip during the peak years. However, the overall trend since 2014-15 indicates a consistent rise in costs associated with legal disputes. The pandemic years were exceptions to this pattern, revealing how extraordinary circumstances can influence government spending.

National Litigation Policy

To address the burgeoning number of pending cases, the government is developing a national litigation policy. This policy aims to expedite the resolution of cases and improve the efficiency of legal processes. A draft of this policy is expected to be presented to the Union Cabinet for approval, signalling a proactive approach to managing litigation.

Future Implications

The rising litigation costs and the large number of pending cases pose challenges for the government. These factors could strain public resources and affect the government’s ability to allocate funds for other essential services. The proposed national litigation policy may provide a framework for better management of legal disputes in the future.

Questions for UPSC:

1. Discuss the implications of increased government litigation expenditure on public resource allocation.
2. Critically examine the effectiveness of the proposed national litigation policy in reducing case backlogs.
3. What are the potential impacts of prolonged litigation on the efficiency of governance? Explain.
4. With suitable examples, discuss the relationship between judicial efficiency and public trust in government institutions.

Answer Hints:

1. Discuss the implications of increased government litigation expenditure on public resource allocation.

1. Increased litigation expenditure diverts funds from essential services like education and healthcare.
2. Rising legal costs can lead to budgetary constraints, impacting infrastructure and development projects.
3. Long-term financial commitments to litigation may limit the government’s fiscal flexibility.
4. Higher litigation costs may necessitate tax increases or reallocating funds from other sectors.
5. The need for effective legal strategies could prompt reforms in public sector management and resource allocation.

2. Critically examine the effectiveness of the proposed national litigation policy in reducing case backlogs.

1. The policy aims to streamline legal processes and enhance case management efficiency.
2. It seeks to establish clear guidelines for litigation, potentially reducing unnecessary delays.
3. Implementation challenges may arise, including resistance from legal practitioners and bureaucratic inertia.
4. Success will depend on adequate resources and training for legal personnel and court systems.
5. Monitoring and evaluation mechanisms will be crucial to assess the policy’s impact on backlog reduction.

3. What are the potential impacts of prolonged litigation on the efficiency of governance? Explain.

1. Prolonged litigation can delay policy implementation and hinder timely decision-making.
2. It may create uncertainty in governance, affecting public confidence and investment decisions.
3. Extended legal disputes can drain government resources, impacting service delivery and project timelines.
4. Litigation can divert attention from governance priorities, leading to inefficiencies in administration.
5. Prolonged cases may erode public trust in government effectiveness and accountability.

4. With suitable examples, discuss the relationship between judicial efficiency and public trust in government institutions.

1. Efficient judicial processes enhance public confidence in the rule of law and governmental authority.
2. Examples like fast-tracked cases in corruption trials can improve perceptions of accountability.
3. Slow judicial proceedings, such as prolonged land acquisition disputes, can lead to public frustration and distrust.
4. Judicial efficiency encourages a sense of justice, encouraging civic engagement and compliance with laws.
5. Transparency and timely resolutions in the judiciary can strengthen the legitimacy of government actions.