In the Indian legislature, the Union Budget is presented by the Finance Minister in the Lok Sabha, the lower house of Parliament. If it does not get passed, it indicates a lack of confidence in the Government by the majority of the members of the Lok Sabha.

Option 1 and 2 are not how Indian parliamentary procedures usually go. The budget might be modified and presented for debate again, or even referred to the Rajya Sabha for suggestions, but neither is automatic.

Option 3 isn`t correct because even the failure to pass the budget does not mean that the Union Finance Minister has to resign - the responsibility and the consequences lie with the entire Council of Ministers, not just one individual.

Option 4 is correct. It states that upon the failure of the annual budget to be passed by the majority in Lok Sabha, the Prime Minister submits the resignation of the Council of Ministers which essentially means the government resigns. This signifies a crisis of confidence in the nation`s top legislative body.