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]

(a) Initiated only in Lok Sabha
(b) Initiated in either House of Parliament
(c) Initiated only in Rajya Sabha
(d) Initiated only in joint session of both House of Parliament

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]

(a) Article 72
(b) Article 88
(c) Article 112
(d) None of the above

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 i the Constitution of India? [U.P.P.C.S. (Mains) 2011]

(a) Annual Financial Statement
(b) Appropriation Bill
(c) Budget
(d) Consolidated Fund of India

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.

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

(a) Parliament does not have any role in the creation of the budget.
(b) Parliament has the power to move on the charged. expenditure on the Consolidated Fund.
(c) Parliament has no power to impose a tax without the recommendation of the President.
(d) Parliament has no power to increase any tax without the recommendation of the President.

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.

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:

(a) 1,2,3 and 5
(b) 1,2 and 4
(c) 3,4 and 5
(d) 1, 2, 3, 4, and 5

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]

(a) The Budget is modified and presented again
(b) The Budget is referred to the Rajya Sabha for suggestions
(c) The Union Finance Minister is asked to resign
(d) The Prime Minister submits the resignation of Council of Ministers

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.

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?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

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]

(a) Before presentation of the Budget for the coming year
(b) After presentation of the Budget for the coming year
(c) After presentation of Finance Bill
(d). And has no relation with presentation of the Budget

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.

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

(a) Go for public loan.
(b) Borrow money from the Reserve Bank of India.
(c) Give grant-in-aid to States.
(d) Withdraw money from the Consolidated Fund of India for specific period.

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.

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

(a) Vote on the report of CAG
(b) To meet unforeseen expenditure
(c) Appropriating funds pending passing of budget
(d) Budget
(e) None of the above/More than one of the above

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.

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