27% of Centre's litigation comes from Finance Ministry; 12 out of 25 HC ASG posts vacant: Parliamentary panel report

The Parliamentary Standing Committee on Personnel, Public Grievances and Law & Justice recently released its 164th report, revealing funding shortfalls and rising legal burden, while recommending improved financial planning and strengthening of the government’s legal and institutional capacity.

The 164th Report examines the Union Law Ministry’s 2026–27 budget, reviewing allocations, litigation trends, staffing gaps and institutional functioning. Here are highlights from the report.

1. ₹2,300 crore funding shortfall and budget cut

The Law Ministry of Law projected a requirement of ₹7,026.527 crore for 2026–27. Against this, an allocation of ₹4,709.06 crore has been made at the budget estimates stage. This results in a shortfall of ₹2,317.467 crore (32.98%).

For 2025–26, the revised estimate stood at ₹5,389.87 crore. The allocation for 2026–27 has been fixed at ₹4,709.06 crore. This reflects a reduction of ₹680.81 crore (12.63%).

Out of the total ₹4,709.06 crore allocation, the Department of Justice has been allotted ₹2,968.84 crore (63%). The Legislative Department has received ₹1,322.46 crore (28.08%), while the Department of Legal Affairs has been allocated ₹417.76 crore (8.87%).

The Department of Legal Affairs projected a requirement of ₹505.145 crore for 2026–27. The allocation has been fixed at ₹417.76 crore. This results in a shortfall of ₹87.385 crore (17.29%).

2. Centre spent ₹619 crore on litigation in last 10 years

The Centre has spent ₹619.65 crore on litigation over the past decade. In 2025–26 alone, ₹74 crore has already been spent till December. This shows a continued increase on legal expenses.

As on December 31, 2025, a total of 7,14,411 cases involving various ministries and departments are pending. These cases are spread across courts and tribunals.

Out of the total pending cases, the Ministry of Finance accounts for 1,94,603 cases - 27% of the total cases. The Ministry of Railways accounts for 1,11,962 cases - 15% of the total cases. The Ministries of Defence and Labour have the next most pending cases in courts and tribunals.

The Committee recommended that ministries/departments with a high volume of litigation undertake periodic internal reviews to identify systemic and procedural causes contributing to avoidable litigation. It has urged them to minimise unwarranted appeals, streamline inter-departmental coordination and reduce both pendency and litigation-related expenditure in a sustainable manner.

3. Vacancies

The sanctioned strength of the Indian Legal Service (ILS) is 125 officers. As per the report, 55 officers are currently in position, leaving 70 posts vacant across different levels.

Out of 25 sanctioned Additional Solicitor General (ASG) posts for High Courts, 13 are in position and 12 are vacant. The Law Commission of India has 2 officers in position against a sanctioned strength of 11.

4. ITAT allocation and infrastructure spending

The Income Tax Appellate Tribunal (ITAT) has been allocated ₹190.16 crore for 2026–27 against a projection of ₹230.625 crore. The report records ongoing infrastructure projects, including construction and acquisition of premises at multiple locations. It also notes utilisation trends and expenditure across projects in Delhi, Kolkata, Ahmedabad and Lucknow.

Lawyers on the panel include Bar Council of India (BCI) Chairman Manan Kumar Mishra and Senior Advocates Vivek Tankha, Kapil Sibal, Kalyan Banerjee and PP Chaudhary.

[Read Report]