Finance Ministry Accounts for 27% of Centre’s Pending Cases, Says Parliamentary Report

A recent report of the Parliamentary Standing Committee on Personnel, Public Grievances and Law & Justice has raised serious concerns about the Union Law Ministry’s finances, litigation burden, and staffing gaps. The 164th report reviews the Ministry’s 2026–27 budget and points to major pressure points in the system.

One of the most striking findings is the large gap between what the Law Ministry sought and what it finally received. The Ministry projected a requirement of ₹7,026.527 crore for 2026–27, but only ₹4,709.06 crore was allocated at the budget estimate stage.

This leaves a shortfall of ₹2,317.467 crore, which is nearly 33 percent of the projected requirement. The panel also noted that the 2026–27 allocation is lower than the revised estimate for 2025–26 by ₹680.81 crore, showing a budget reduction of 12.63 percent.

Among the three wings of the Ministry, the Department of Justice received the largest share with ₹2,968.84 crore. The Legislative Department was allotted ₹1,322.46 crore, while the Department of Legal Affairs got ₹417.76 crore. Even this amount fell short of the Legal Affairs Department’s projected need.

The report also highlights the growing cost of government litigation. Over the last ten years, the Centre has spent ₹619.65 crore on litigation. In 2025–26 alone, ₹74 crore had already been spent till December, showing that legal expenditure continues to remain heavy.

As of December 31, 2025, more than 7.14 lakh cases involving Union ministries and departments were pending before courts and tribunals. The Ministry of Finance alone accounted for 1,94,603 cases, which forms 27 percent of the total pending litigation.

The Ministry of Railways followed with 1,11,962 pending cases, or 15 percent of the total. The report said the Ministries of Defence and Labour also carry a high litigation load. It urged departments to review internal systems and avoid unnecessary appeals that increase cost and delay.

Another major concern is shortage of legal personnel. The Indian Legal Service has a sanctioned strength of 125 officers, but only 55 are currently in place. This means 70 posts remain vacant across different levels, weakening the legal machinery of the government.

The shortage is also visible in senior law officer positions. Out of 25 sanctioned posts of Additional Solicitor General for High Courts, only 13 are filled, leaving 12 vacant. The Law Commission of India also has just 2 officers in position against a sanctioned strength of 11.

The committee further examined the Income Tax Appellate Tribunal and noted that it has been allotted ₹190.16 crore against a projected requirement of ₹230.625 crore. It also recorded ongoing infrastructure work at multiple places, while stressing the need for better planning and stronger institutional support.