The budget process in India is a structured procedure that involves several stages, ensuring transparent governance and financial accountability. It primarily revolves around the Finance Minister's presentation of the budget and subsequent parliamentary discussions.
The budget is formally presented by the Finance Minister, marking the beginning of the financial planning for the upcoming year. Following this presentation, there is usually a 2-3 day adjournment, allowing members of Parliament to study the budget details.
A general discussion on the budget occurs approximately two weeks after its presentation. During this period, members express their views and suggestions. Following the discussions, there is a three-week recess during which the Departmentally Related Standing Committees review the demands for grants from their respective ministries.
After the recess, the Lok Sabha votes on the demands for grants. Members can introduce cut motions, subject to the Speaker's approval. This stage is crucial for scrutinizing the budgetary allocations and ensuring that funds are properly allocated to various sectors.
Once the demands for grants are approved, the Appropriation Bill is presented. This bill is essential for authorizing expenditure from the Consolidated Fund of India. It is mandatory for the bill to be passed to allow the withdrawal of funds.
The Finance Bill, which includes taxation proposals, is then introduced. It is important to note that Parliament typically does not increase tax rates over what the Finance Minister proposes but may suggest reductions or abolitions of certain taxes.
The entire budget process is underpinned by the Constitution of India, specifically Articles 112–117. These articles stipulate that no grant or expenditure can be proposed without the President's recommendation. Although Parliament generally adheres to the proposed tax rates, it holds the power to recommend changes, which reflects its role in financial governance.
Q1. What is the role of the Finance Minister in the budget process?
Answer: The Finance Minister plays a critical role by presenting the budget to Parliament, outlining financial allocations and taxation proposals for the upcoming fiscal year.
Q2. How long does the general discussion on the budget last?
Answer: The general discussion typically lasts about two weeks after the budget presentation, allowing members of Parliament to debate and discuss the proposed allocations.
Q3. What is the Appropriation Bill?
Answer: The Appropriation Bill is a legislative proposal necessary for authorizing government expenditure from the Consolidated Fund of India, ensuring that funds can be withdrawn for various expenditures.
Q4. Can Parliament change tax proposals in the Finance Bill?
Answer: Yes, while Parliament generally adheres to the Finance Minister's tax proposals, it has the authority to suggest reductions or abolitions of certain taxes.
Q5. What constitutional articles govern the budget process?
Answer: Articles 112 to 117 of the Indian Constitution provide the framework for the budget process, detailing the procedures for presenting and approving the budget.
Question 1: What is the primary function of the Finance Minister during the budget process?
A) To vote on the budget in Lok Sabha
B) To present the budget to Parliament
C) To review the demands for grants
D) To authorize expenditure from the Consolidated Fund
Correct Answer: B
Question 2: How long is the recess after the general discussion on the budget?
A) One week
B) Two weeks
C) Three weeks
D) Four weeks
Correct Answer: C
Question 3: Which article of the Indian Constitution mandates the need for the President's recommendation for grants?
A) Article 112
B) Article 115
C) Article 117
D) Article 120
Correct Answer: A
Question 4: What does the Appropriation Bill authorize?
A) Increases in tax rates
B) Expenditure from the Consolidated Fund
C) Allocation for specific ministries
D) Review of the Finance Bill
Correct Answer: B
Question 5: Can Parliament increase tax rates proposed in the Finance Bill?
A) Yes, without any restrictions
B) No, it can only suggest reductions
C) Yes, but only with majority approval
D) No, it must adhere to the proposals
Correct Answer: D
Question 6: What is the significance of the Finance Bill in the budget process?
A) It presents the budget amounts
B) It includes taxation proposals
C) It outlines the budget discussions
D) It is a summary of expenditures
Correct Answer: B
Question 7: What happens after the Lok Sabha votes on the demands for grants?
A) The budget is immediately implemented
B) The Appropriation Bill is presented
C) The Finance Bill is debated
D) The general discussion resumes
Correct Answer: B
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