Statement 1 is incorrect. The Union Budget is prepared by the Budget Division under the Department of Economic Affairs in the Ministry of Finance, not the Department of Revenue. The Department of Revenue is mainly responsible for taxation policy and administration. Statement 2 is correct. Article 266(1) of the Constitution establishes the Consolidated Fund of India. No money can be withdrawn from this fund except under appropriation made by law passed by Parliament. This ensures parliamentary control over government expenditure. Statement 3 is incorrect. Article 266(2) deals with the Public Account of India, which holds funds like provident funds, small savings, etc., where the government acts as a banker. Disbursements from the Public Account do not require legislative authorization; they are made based on executive decisions and are repayable. Only transactions from the Consolidated Fund require parliamentary approval.
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 No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3.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?
Asked in UPSC IAS 2015 · Topic: The Parliament (Budget in Parliament: Financial Procedures and Funds)
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