- The budget process includes presenting the budget, general discussion, scrutiny by committees, voting on demands for grants, passing of the Appropriation Bill, and passing of the Finance Bill. - Vote on Account is a grant made in advance by Parliament in respect of the estimated expenditure for a part of a financial year, pending the passing of the regular appropriation bill. It comes before the detailed voting on grants. - Voting on Demands for Grants occurs after general discussion and scrutiny, where the Lok Sabha votes on the proposed expenditures for various ministries/departments. - Cut Motions are parliamentary devices used during the discussion on demands for grants to reduce the amount of a demand. - The Appropriation Bill is a Money Bill required to draw money from the Consolidated Fund of India to meet the grants voted by the Lok Sabha and the expenditure charged on the Consolidated Fund. It is passed after the demands for grants are voted.
Identify the correct sequence of the procedure in respect of the Money Bill :
Asked in UPSC CAPF 2010 · Topic: The Parliament (Budget in Parliament: Financial Procedures and Funds)
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Answer: B. Vote on account—Voting of grants—Appropri‐ ation bill—Cut motions
More Indian Polity and Governance questions
- Which of the following expenditures is/are charged on the Consolidated Fund of India? 1. The emoluments and allowances of the President and the expenditure relating to his/her office 2. The salaries and allowances of the Chairman and Deputy Chairman of the Council of States and the Speaker and Deputy Speaker of the House of the People 3. Debt charges for which the Government of India is liable
- 'Cut Motion' can be introduced after the presentation of :
- Which of the following pair(s) is/are correctly matched? 1. Rule of lapse : Part of grant that can be carried over to next year 2. Supplementary grant: An advance grant to meet expenditures 3. Vote on account: Additional funds granted in the course of financial year Select the correct answer using the code given below:
- Rule of Lapse This rule implies that any unspent appropriation from the budget for a particular financial year lapses at the end of that year and cannot be carried forward to the next year. Statement 1 is incorrect. 2. Supplementary Grant This is an additional grant required during the current financial year when the amount authorized by the Parliament through the Appropriation Act for a particular service is found to be insufficient, or when a need arises for expenditure on a new service not contemplated in the annual budget. Statement 2 describes something closer to a Vote on Account or an advance, not a supplementary grant. 3. Vote on Account This is a grant by Parliament by which the government is authorized to draw money from the Consolidated Fund of India to meet expenditure for a part of the new financial year, pending the completion of the budgetary process (passing of Appropriation Bill and Finance Bill). It is an advance grant for a few months, not additional funds for the current year like a supplementary grant. Statement 3 is incorrect. 25. Which one of the following is the correct sequence of different stages a budget has to go through in the Parliament ? 1. Presentation of the Budget 2. Scrutiny by Departmental Commit- tees 3. Passing of Finance Bill 4. Passing of Appropriation Bill Select the correct answer using the code given below :
- Presentation of the Budget The budget is presented by the Finance Minister, followed by a general discussion on its overall proposals. 2. Scrutiny by Departmental Committees After the general discussion, the Houses adjourn, and standing committees scrutinise the demands for grants of respective ministries and prepare reports. 3. Voting on Demands for Grants Based on the committee reports, the Lok Sabha discusses and votes on the demands for grants of various ministries. 4. Passing of Appropriation Bill This Bill is introduced after the grants are voted. It authorizes the government to withdraw money from the Consolidated Fund of India to meet the expenditure sanctioned in the voted grants and charged expenditures. 5. Passing of Finance Bill This Bill gives effect to the financial proposals of the government for the next financial year (primarily concerning taxes). It is usually passed after the Appropriation Bill, but both must be passed before the new financial year begins (April 1st). Based on the options provided, the sequence 1-2-4-3 corresponds to Presentation - Scrutiny - Appropriation Bill - Finance Bill, which is the correct procedural order where the Appropriation Bill is passed before the Finance Bill. 26. Consider the following statements : The Rajya Sabha has no power either to reject or to amend a Money Bill. The Rajya Sabha cannot vote on the Demands for Grants. The Rajya Sabha cannot discuss the Annual Financial Statement. Which of the statements given above is/are correct?
- With reference to the Union Government, consider the following statements: 1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to Parliament. 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3. All the disbursements made from Public Account also need the authorization from the Parliament of India. Which of the statements given above is/are correct?
- With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct ? 1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc. 2. A specified portion of each MP's fund must benefit SC/ST populations. 3. MPLADS funds are sanctioned on yearly basis and the unused funds cannot be carried forward to the next year. 4. The district authority must inspect at least 10% of all works under implementation every year. Select the correct answer using the code given below :
- With reference to Union Budget, consider the following statements : 1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament. 2. 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 ?
