With reference to Union Budget, consider the following statements :
- The Union Finance Minister on behalf of the President lays the Annual Financial Statement before both the Houses of Parliament.
- At the Union level, no demand for a grant can be made except on the recommendation of the President of India.
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 3 — Both 1 and 2
Both statements are correct regarding the Union Budget. The Constitution of India mandates that the President causes the Annual Financial Statement to be laid before Parliament, which is done in practice by the Union Finance Minister. Additionally, no demand for a grant can be made at the Union level without the recommendation of the President, ensuring executive control over public expenditure.
✅ Statement 1 (Presentation of Budget) – Correct: Under Article 112, the President causes the Annual Financial Statement (Union Budget) to be laid before both Houses of Parliament, which is presented in practice by the Union Finance Minister on behalf of the President.
✅ Statement 2 (Demand for Grants) – Correct: Article 113(3) explicitly provides that no demand for a grant shall be made except on the recommendation of the President of India, ensuring executive control over expenditure proposals from the Consolidated Fund of India.
📝 Short Notes: Union Budget and Financial Procedure
- Annual Financial Statement (Article 112): The President causes the Annual Financial Statement (Union Budget) to be laid before both Houses of Parliament for each financial year, showing estimated receipts and expenditure.
- Contents of Budget: The Budget distinguishes expenditure as (a) charged on the Consolidated Fund of India (non-votable), and (b) made from the Consolidated Fund of India (votable by Parliament).
- Demand for Grants (Article 113): Expenditure from the Consolidated Fund requires parliamentary approval through demands for grants. No such demand can be made without the President's recommendation.
- Appropriation Bill (Article 114): After grants are voted, the Appropriation Bill is introduced to authorize the withdrawal of money from the Consolidated Fund to meet the approved expenditure.
- Finance Bill (Article 110): A Money Bill containing provisions for taxation and other financial matters is introduced to give effect to the financial proposals of the government.
- Vote on Account (Article 116): Parliament can make an advance grant for a part of the financial year pending the voting of the main budget demands.
- Guillotine: A procedural device where all remaining demands for grants are put to vote simultaneously on the last day allotted for discussion, ensuring budget passage within the stipulated time.
| Constitutional Provision | Article | Purpose | Parliamentary Action Required |
|---|---|---|---|
| Annual Financial Statement | Article 112 | Presentation of Budget estimates | Discussion (no voting) |
| Demand for Grants | Article 113 | Approval of expenditure | Voting required (on President's recommendation) |
| Appropriation Bill | Article 114 | Authorization to withdraw funds | Voting required |
| Finance Bill | Article 110 | Implementation of tax proposals | Voting required (Money Bill) |
| Vote on Account | Article 116 | Advance grant for part of year | Voting required |
| Charged Expenditure | Article 112(3) | Non-votable statutory payments | Discussion only (no voting) |
Question 1 of 7 Budget and Financial Procedures
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