The Parliament (Part-VII)

Total Questions: 34

1. A Bill which merely involves expenditure and does not include any of the matters specified in Article 110 can be: [U.P.P.C.S. (Mains) 2016]

Correct Answer: (b) Initiated in either House of Parliament
Solution:Financial Bills can be divided into two categories. In the first category, the Bills which contain provision of Article 110(1) (a) to (f) of the Constitution are categorized as financial Bills under Article 117(1) of the Constitution. In the second category, those Bills which contain provision of expenditure from the consolidated fund of India are categorized as financial Bills under Article 117(3) of the Constitution. These can be introduced in either House of Parliament. However, the recommendation of the President is essential for consideration of these Bills unless such consideration, neither house can pass the Bill.

2. Which of the following Articles of the Indian Constitution deals with the Annual Financial Statement? [Chhattisgarh P.C.S. (Pre) 2023]

Correct Answer: (c) Article 112
Solution:According to Article 112 of the Indian Constitution, the Union Budget of a year is referred as the Annual Financial Statement. It is a statement of the estimated receipts and expenditures of the government in a financial year (1 April of the current year and ends on 31 march of the following year). In the parliament, the budget goes through six stages:

Presentation of Budget.

General discussion.

Scrutinising by departmental committees.

Voting on demands for grants.

Passing of Appropriation bill.

Passing of Finance bill.

3. Which one of the following terms does not appear in the Constitution of India? [U.P.P.C.S. (Mains) 2011]

Correct Answer: (c) Budget
Solution:The word "Budget" is not mentioned in the Constitution of India. Under Article 112, the term "Annual Financial Statement" is mentioned.
  • In addition to the estimates of receipts and expenditures, the Budget contains certain other elements, which are as follows-
    Estimates of revenue and capital receipts
    ∗ Ways and means to raise revenue.
    ∗ Estimates and expenditure
    ∗ Details of actual receipts and expenditures of the closing financial              year and the reason for any deficit or surplus in that year
    ∗ The fiscal and economic policy for the upcoming year, including                 proposed taxes, income projections, a spending plan, and the                       introduction of new programs/projects.
  • It was prepared by the Department of Expenditure, ministry of finance, and presented by the finance minister on behalf of the president on February 1.

4. Which one of the following statements is not correct with regard to control of Parliament on a budget? [I.A.S. (Pre) 2009]

Correct Answer: (b) Parliament has the power to move on the charged. expenditure on the Consolidated Fund.
Solution:The charged expenditure upon the Consolidated Fund of India (Article 112(3)] is not submitted to the vote of Parliament, although there can be a discussion on the same in either House of Parliament.
  • In addition to the estimates of receipts and expenditures, the Budget contains certain other elements, which are as follows-
    Estimates of revenue and capital receipts
    ∗ Ways and means to raise revenue.
    ∗ Estimates and expenditure
    ∗ Details of actual receipts and expenditures of the closing financial              year and the reason for any deficit or surplus in that year
    ∗ The fiscal and economic policy for the upcoming year, including                 proposed taxes, income projections, a spending plan, and the                       introduction of new programs/projects.
  • It was prepared by the Department of Expenditure, ministry of finance, and presented by the finance minister on behalf of the president on February 1.

5. Which of the following are the methods of Parliamentary control over public finance in India? [I.A.S. (Pre) 2012]

1. Placing Annual Finance Statement before the Parliament.

2. Withdrawal of money from Consolidated Fund of India only after passing the Appropriation Bill.

3. Provisions of supplementary grants and vote-on- account.

4. A periodic or at least a mid-year review of the programme of the Government against macro- economic forecasts and expenditures by a Parliamentary Budget Office.

5. Introducing Finance Bill in the Parliament.

Select the correct answer using the codes given below:

Correct Answer: (a) 1,2,3 and 5
Solution:The Parliament exercises following types of control over the expenditure-

(i) No Money can be withdrawn from the consolidated fund of India under Article 114 of the Indian Constitution. Without a Bill for the appropriation.

(ii) Provisions relating to supplementary grant and vote on account are given in Article 115 and Article 116 of the Constitution.

(iii) Article 107 is related to Provisions as to introduction and Passing of Bills.

(iv) Placing Annual Financial Statement before the Parliament.

6. If the annual Union Budget is not passed by the Lok Sabha... [I.A.S. (Pre) 2011]

Correct Answer: (d) The Prime Minister submits the resignation of Council of Ministers
Solution:If the annual Union Budget is not passed by the Lok Sabha, the Prime Minister submits the resignation of the Council of Ministers because it would mean that the government has lost majority in the Lok Sabha.

History of Budget-

  • 1860- India's first Budget was prepared and presented by James Wilson.
  •  1921-railway budget was separated from the general Budget in 1924 on the recommendations of the Acworth Committee (1921), as it was a very big sector contributing 70% of India's economy.
    ∗ The reasons for the separation of the Budget-
  • To introduce flexibility in railway finance.
  • To enable a commercial approach to the railroad policy
  • A guaranteed annual contribution from railroad revenues will be provided to ensure the general revenues' stability.
  • This would allow the railways to retain their income for internal growth.
    2017- after the recommendation of NITI Aayog, the general Budget and the railway budget were combined. Hence, now there is only one single
    Budget for the government of India, called the union budget.

7. With reference to the Parliament of India, consider the following statements: [I.A.S. (Pre) 2017]

1. A private member's bill is a bill presented by a Member of Parliament who is not elected but only nominated by the President of India.

2. Recently, a private member's bill has been passed in the Parliament of India for the first time in its history.

Which of the statements given above is/are correct?

Correct Answer: (d) Neither 1 nor 2
Solution:A private member's Bill is a Bill presented by any member other than a Minister. The difference between the two cases is that any member other than a Minister desiring to introduce a Bill has to give a notice of his intention and to ask for leave of the House to introduce the Bill. If a Bill has been published in the official gazette before it's introduction, no motion for leave to introduce the Hill is necessary About a dozen private Bills have been passed since the independence. Thus, neither statement I not statement 2 is correct.

8. Economic Survey is presented in Parliament every year- [U.P.P.C.S. (Mains) 2004]

Correct Answer: (a) Before presentation of the Budget for the coming year
Solution:The Economic Survey is presented in the Parliament every year before the presentation of the Budget for the coming year. Economic Survey contains the progress, activities and fiscal details of various sectors of the Economy for the current year.

The Economic Survey is an important document that is prepared for the country's economic performance analysis over the past financial year and offers policy recommendations for the upcoming fiscal year. In India, the Economic Survey is released one day before the Union Budget. The Economic Survey 2025 was published on January 31, 2025. It is prepared by the Department of Economic Affairs (DEA) under the Ministry of Finance, and serves as a resource for policymakers, economists and researchers.

9. Votes on Account' permits Union Government to: [U.P.P.C.S. (Mains) 2004]

Correct Answer: (d) Withdraw money from the Consolidated Fund of India for specific period.
Solution:Article 116 of the Indian Constitution states that in case the Appropriation Bill is not passed and the Union government requires withdrawal of money, it can, through Vote on Account, have the power to authorize by law the withdrawal of money from the Consolidated Fund of India.

Vote-on-account

The vote-on-account is passed through the interim budget.

  • It allows the government to meet its expenses in the short period leading up to the elections.
  • The vote-on-account is passed as a convention without discussion, as opposed to a full budget where the budget is passed only after discussions are held.
  • It is like a grant-in-advance to the government to function properly until the voting on the demands for grants, as well as the passing of the Finance Bill and the Appropriation Bill.
  • The sum of this grant is 1/6th of the estimated expenditure for the whole year under various demands for grants.
  • The vote-on-account is valid for two months usually. The full budget is valid for a year.
    A vote-on-account contains only the expenditure of the government whereas the interim budget deals with both receipts and expenditure.

10. Vote on Account is meant for- [60th to 62nd B.P.S.C. (Pre) 2016]

Correct Answer: (c) Appropriating funds pending passing of budget
Solution:A Vote on-Account is presented when Government has no time to present the full Budget, or elections are around the corner, When the Government does not have enough time to vote for a full budget before the commencement of the new financial year, a special provision is made to make sure that there is enough money at the disposal of the Government to allow it to run the administration of the country. This special provision is known as Vote-on-Account. Article 116(1)(a) of the Constitution has the provision for vote-on-Account.