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Q12 (CDS-II/2023) Polity & Governance › Parliament › Budgetary process Parliament Answer Verified

The executive is given an advance grant to meet temporary and running requirements of the Government of India in the beginning of the new financial year until the demands are voted by the legislature. This is known as :

Result
Your answer: —  Â·  Correct: B

Explanation

The 'Vote on Account' is a constitutional provision that allows the Lok Sabha to make an advance grant to the executive to meet temporary and running requirements of the Government of India [1]. This is necessary because the voting of demands for grants and the enactment of the Appropriation Bill often extend beyond the start of the new financial year on April 1st [5]. Under Article 116 (or Article 206 for states), the legislature can authorize expenditure for a part of the financial year pending the completion of the full budgetary process [5]. While recent reforms advancing the budget presentation to February 1st aim to pass the full Appropriation Bill by March 31st to avoid this mechanism, it remains essential during election years when an interim budget is presented [3]. It specifically deals with the expenditure side, ensuring the government can function until the legislature formally votes on the full demands [1].

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 147
  2. [5] http://budget.up.nic.in/Manual/Final/Chapter/chapter_I-XIX.pdf
  3. [2] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 255
  4. [3] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Stages in Enactment > p. 255
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SIMILAR QUESTIONS

IAS · 2024 · Q85 Relevance score: -2.11

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 ?

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Which one of the following are advance grants made by the House of People in respect of the estimated expenditure for a part of the ensuing financial year, pending the regular passage of the budget ?

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The Annual Financial Statement of the Government of India in respect of each financial year shall be presented to the House on such day as the

IAS · 2012 · Q60 Relevance score: -3.40

Which of the following are the methods of Parliamentary control over public finance in India?

  1. Placing Annual Financial Statement before the Parliament
  2. Withdrawal of moneys from Consolidated Fund of India
  3. Provisions of supplementary grants and vote-on-account
  4. A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office
  5. Introduction of Finance Bill in the Parliament

Select the correct answer using the codes given below:

IAS · 2015 · Q27 Relevance score: -4.10

Consider the following statements : 1. The Rajya Sabha has no power either to reject or to amend a Money Bill. 2. The Rajya Sabha cannot vote on the Demands for Grants. 3. The Rajya Sabha cannot discuss the Annual Financial Statement. Which of the statements given above is/are correct?