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Q60 (IAS/2015) Economy › Government Finance & Budget › Government funds structure Official Key

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 the 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 No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3.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?

Result
Your answer: —  ·  Correct: C
Explanation

The Budget Division in the DEA (Department of Economic Affairs) has the prime responsibility for the preparation and submission of the Union Budget[1], not the Department of Revenue. Therefore, statement 1 is incorrect.

All expenditures incurred by the government are debited against the Consolidated Fund and no amount can be withdrawn from the Fund without the authorization from the Parliament[2]. This is further reinforced by the constitutional provision that no money can be withdrawn from the Consolidated Fund except under an Appropriation Act[3]. Therefore, statement 2 is correct.

However, disbursements from the Public Account are not subject to vote by the Parliament, as they are not moneys issued out of the Consolidated Fund of India[4]. The Public Account contains moneys held in trust by the government (like provident funds, small savings, etc.) and their disbursement does not require parliamentary authorization. Therefore, statement 3 is incorrect.

Only statement 2 is correct, making option C the right answer.

Sources
  1. [1] https://dea.gov.in/files/budget_division_documents/Budget_Manual_1.pdf
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.3 Government Accounts > p. 150
  3. [3] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 258
  4. [4] https://dea.gov.in/files/budget_division_documents/Budget_Manual_1.pdf
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Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. With reference to the Union Government, consider the following statements : 1. The Department of Revenue is responsible for the preparat…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 3.3/10 · 6.7/10

This is a classic 'Polity-Economy Hybrid' question. While technical manuals exist, the core answers lie in standard texts like Laxmikanth (Parliamentary Funds) and basic Economy NCERTs (Budget Process). The difficulty comes from the specific administrative detail (Department of Revenue vs. DEA) which tests if you read the 'fine print' of the Ministry of Finance structure.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Under the Union Government of India, is the Department of Revenue responsible for preparing the Union Budget presented to Parliament?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"ROLE OF BUDGET DIVISION IN THE DEPARTMENT OF ECONOMIC AFFAIRS (DEA): The Budget Division in the DEA has the prime responsibility for the preparation and submission of"
Why this source?
  • Explicitly names the Budget Division in the Department of Economic Affairs (DEA) as having the prime responsibility for preparation and submission.
  • Identifies DEA (not Department of Revenue) as the organizational unit charged with preparing the Union Budget.
Web source
Presence: 4/5
"The Union Budget of India, also referred as the General Budget, is presented each year on the last working day of February by the Finance Minister of India to the Parliament."
Why this source?
  • States that the Union Budget is presented to Parliament by the Finance Minister of India, indicating presentation and central management lie with the Finance Ministry/DEA ecosystem.
  • Reinforces that budget presentation is a Finance Ministry function rather than a role attributed to the Department of Revenue in these passages.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > How is the Budget Prepared by the Government? > p. 119
Strength: 5/5
“The presentation of the Union Budget by the Finance Minister has been shifted from the last week of February to the 1st of February every year. From 2017-18 onwards, Railway Budget (which was continuing since 1924) has also been merged with the Union General Budget. It was separated from main budget in 1924 by Acworth Committee. Again, it has been merged with Union Budget in 2016 by Bibek Debroy Committee. Budget Division of the Department of Economic Affairs, Ministry of Finance is the nodal agency for the preparation of general budget. It is based on the data provided by each Ministry.”
Why relevant

Explicitly states that the Budget Division of the Department of Economic Affairs, Ministry of Finance is the nodal agency for preparation of the general budget.

How to extend

A student could check organisational charts or official Ministry of Finance documents to compare the roles of Department of Economic Affairs versus Department of Revenue.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 146
Strength: 5/5
“Budget is an estimate of income and expenditure for a future period of time. The estimated receipts and expenditure of the government of India in respect of each financial year is called the budget of GoI. Article 265 of the Constitution provides that no tax shall be levied or collected except by authority of law. And as per Article 266 no expenditure can be incurred except with the authorization of the legislature. Government takes the approval of the parliament for the taxes/receipts through the Finance Bill and the approval for the expenditures through the Appropriation Bill. Budget is prepared by the Budget Division, Department of Economic Affairs, Ministry of Finance.”
Why relevant

Says the budget is prepared by the Budget Division, Department of Economic Affairs, Ministry of Finance, giving a clear rule about which department prepares the budget.

How to extend

Use this rule to rule out Department of Revenue unless external sources show responsibility transferred or shared.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.2 Budget Procedure > p. 148
Strength: 4/5
“The budget is presented in the parliament on the first working day of February at 11.00 am. The General Budget is presented in Lok Sabha by the finance minister and he/she makes a speech introducing the budget and after the speech it is presented in the Rajya Sabha. No discussion on Budget takes place on the day it is presented to the parliament. The main budget documents presented to parliament comprise, besides the Finance Minister Budget Speech, of the following: • Annual Financial Statement• Demand for Grants• Appropriation Bill• Finance Bill Budget is discussed in two stages - the general discussion followed by detailed discussion.”
Why relevant

Describes the procedural role of the Finance Minister in presenting the General Budget and lists main budget documents, implying central coordination in Ministry of Finance.

How to extend

Combine with knowledge that Finance Minister heads the Ministry of Finance to infer which internal departments likely coordinate budget preparation.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.15 Previous Years Questions > p. 187
Strength: 3/5
“With reference to the Union Government, consider the following statements: [2015] • (i) The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament• (ii) No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India• (iii) 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?• (a) (i) & (ii) only• (b) (ii) & (iii) only• (c) (ii) only• (d) (i), (ii) & (iii)”
Why relevant

Contains a past exam-style item that explicitly questions whether 'The Department of Revenue is responsible for the preparation of Union Budget', indicating this is a contested or testable claim.

How to extend

A student could use this as a prompt to verify which department is actually responsible by consulting authoritative sources or the Ministry's organisational responsibilities.

Statement 2
Does the Constitution of India require parliamentary authorization for any withdrawal from the Consolidated Fund of India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 258
Presence: 5/5
“The estimates of expenditure, other than those which are charged, are then placed before the House of the People in the form of "demands for grants". No money can be withdrawn from the Consolidated Fund except under an Appropriation Act. passed as follows: As soon as may be after the demands for grants have been voted by the House of the People. there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of India of all moneys required to meet. (.) the grants so made by the· House of the People; and (b) the expenditure charged on the Consolidated Fund of India.”
Why this source?
  • Explicitly states that 'No money can be withdrawn from the Consolidated Fund except under an Appropriation Act'.
  • Links withdrawal to the process of demands for grants and parliamentary voting, showing parliamentary control over appropriation.
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 261
Presence: 5/5
“No money out of the Consolidated Fund of India (or of a State) shall be appropriated except in accordance with a law of Appropriation. The procedure for the passing of an Appropriation Acthas been already noted. Contingency Fund of (c) Article 267 of the Constitution empowers Parliament and the Legislature of a State to create a "Contingency Fund" for India or for a State, as the case may be: The "Contingency Fund" for India has been constituted by the Contingency Fund of India Act. 1950. The Fund will be at the disposal of the executive to enable advances to be made.”
Why this source?
  • Affirms constitutional provision that no money out of the Consolidated Fund shall be appropriated except in accordance with a law of Appropriation (Article reference context).
  • Identifies the Appropriation Act mechanism as the legal basis for withdrawals from the Fund.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.3 Government Accounts > p. 150
Presence: 5/5
“All expenditures incurred by the government for the conduct of its business including repayment of internal and external debt and release of loans to States/ Union Territory governments for various purposes are debited against this fund and no amount can be withdrawn from the Fund without the authorization from the Parliament.• 2. Contingency Fund of India: This fund is in the nature of an imprest (a fixed fund for a specific purpose) account and is kept at the disposal of the President of India (by the Secretary to the Government of India, Ministry of Finance, Department of Economic Affairs) to enable the government to meet unforeseen expenses pending authorization by the Parliament.”
Why this source?
  • States directly that 'no amount can be withdrawn from the Fund without the authorization from the Parliament'.
  • Contrasts Consolidated Fund with Contingency Fund (which is for advances pending parliamentary authorization), reinforcing the need for parliamentary sanction for CFI withdrawals.
Statement 3
Does the Constitution of India require parliamentary authorization for disbursements from the Public Account of India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"Disbursements from the Public Account are not subject to vote by the Parliament, as they are not moneys issued out of the Consolidated Fund of India."
Why this source?
  • Explicitly states disbursements from the Public Account are not subject to a Parliamentary vote.
  • Directly distinguishes Public Account moneys from the Consolidated Fund (which require Parliamentary appropriation).
Web source
Presence: 3/5
"all other public moneys received by or on behalf of the Government of India are credited to the Public Account of India as empowered vide Article 266(2) of the Constitution of India."
Why this source?
  • Identifies the constitutional source (Article 266(2)) that empowers crediting moneys to the Public Account of India.
  • Shows the Public Account is constitutionally distinct from the Consolidated Fund, supporting the distinction in authorization rules.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Funds > p. 256
Strength: 5/5
“All legally authorised payments on behalf of the Government of India are made out of this fund. Public Account of India All other public money (other than those which are credited to the Consolidated Fund of India) received by or on behalf of the Government of India shall be credited to the Public Account of India. This includes provident fund deposits, judicial deposits, savings bank deposits, departmental deposits, remittances and so on. This account is operated by executive action, that is, the payments from this account can be made without parliamentary appropriation. Contingency Fund of India. The Constitution authorised the Parliament to establish a 'Contingency Fund of India', into which amounts determined by law are paid from time to time.”
Why relevant

States that the Public Account is operated by executive action and payments from it can be made without parliamentary appropriation.

How to extend

A student could combine this rule with knowledge of constitutional appropriation clauses to infer that PAI disbursements differ from Consolidated Fund appropriations.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.3 Government Accounts > p. 151
Strength: 5/5
“Account. The receipts into the Public Account and disbursements out of it are not subject to vote by the Parliament. Receipts under this account mainly flow from the sale of Savings Certificates, contributions into General Provident Fund, Public Provident Fund, Security Deposits and Earnest Money Deposits (a kind of security deposits) received by the government. In respect of such deposits, the government is acting as a Banker or Trustee and refunds the money after the completion of the contract/ event. State Governments has their own Consolidated Fund, Public Account and Contingency Fund (as mandated by the Constitution). Union Territory (with Legislative Assembly) has their own Consolidated Fund, Contingency Fund and Public Account as per "The Government of Union Territories Act, 1963".”
Why relevant

Says receipts into and disbursements out of the Public Account are not subject to vote by Parliament.

How to extend

Use this to contrast voting/appropriation procedures for the Consolidated Fund versus the Public Account when judging whether prior parliamentary authorization is required.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Components of Fiscal Policy > p. 83
Strength: 5/5
“Withdrawal of any amount from this fund requires post facto approval of the Parliament (unlike CFI). Any amount withdrawn from the Contingency Fund is returned to the Contingent Fund of India (CFI). Public Account of India (PAI) - The Provident Funds of the employees and small savings flow into PAI. The said fund does not belong to the Government as it has to be returned to the rightful owners in future. Any withdrawal from this account does not require Parliament's approval. PAI is formed under Article 266(2) of the Indian Constitution.”
Why relevant

Explicitly contrasts Contingency Fund (post facto approval required) with Public Account (withdrawal does not require Parliament's approval) and cites Article 266(2).

How to extend

A student could check Article 266 text and compare procedures for Contingency Fund, Consolidated Fund and Public Account to test the statement.

Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 259
Strength: 4/5
“The financial system consists of two branches-revenue and expenditure. Parliament's control (i) As regards revenue, it is expressly laid down by our over the Financial Constitution [Article 265) that no tax shall be levied or collected except by authority of law. The result is that the Executive cannot impose any tax without legislative sanction. If any tax is imposed without legislative authority, the aggrieved person can obtain his relief from the courts of law. (ii) As regards expenditure, the pivot of parliamentary control is the Consolidated Fund of India. This is the reservoir into which all the revenues received by the Government: of India as well as all loans raised by it are paid and the Constitution provides that no moneys shall be appropriated out of the Consolidated Fund of India except in accordance with law [Article 266(3)].”
Why relevant

Explains that parliamentary control over expenditure pivots on the Consolidated Fund (Article 266(3)), implying a special constitutional role for the CFI distinct from other accounts.

How to extend

Combine this with snippets about the Public Account to deduce that constitutional appropriation rules primarily target the Consolidated Fund, not necessarily the Public Account.

Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 261
Strength: 3/5
“In scrutinising the Appropriation Accounts of the Government of India · and the report of the Comptroller and Auditor~General thereon it shall be the duty of the Committee on Public Accounts to satisfy itself- (a) that the moneys shown in the accounts as having been disbursed were legally available for and applicable to the service 'or purpose to which they have applied or charged; . .(b) that the expenditure conforms to the authority which governs it; and(c) that every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority, This Committee in short scrutinises the report of the Comptroller and Auditor-General in details and then submits its report to the House of the People so that the irregularities noticed by it may be discussed by Parliament and effective steps taken.”
Why relevant

Describes the Committee on Public Accounts scrutinising disbursements and legal availability of monies, indicating parliamentary oversight occurs via audit/scrutiny.

How to extend

A student could infer that oversight over Public Account spending may be ex post (audit/committee) rather than ex ante (prior authorization), and investigate which applies to PAI.

Pattern takeaway: UPSC consistently uses 'Agency Swapping' as a trap. If a statement claims 'Department X does Function Y', be hyper-skeptical. Usually, 'Revenue' collects, 'Expenditure' controls rules, and 'Economic Affairs' plans the macro picture (Budget).
How you should have studied
  1. [THE VERDICT]: Sitter disguised as Technical. Solvable via standard Polity/Economy basics (Laxmikanth Ch 22/23 + Vivek Singh).
  2. [THE CONCEPTUAL TRIGGER]: The 'Financial Administration' theme—specifically Article 266 (CFI & Public Account) and the organizational structure of the Ministry of Finance.
  3. [THE HORIZONTAL EXPANSION]: Memorize the 6 Departments of MoF: (1) Economic Affairs (Budget), (2) Expenditure, (3) Revenue, (4) Financial Services, (5) DIPAM, (6) Public Enterprises. Contrast the 3 Funds: CFI (Art 266, Parliament Vote), Public Account (Art 266(2), Executive Action, 'Banker' role), Contingency Fund (Art 267, President/Finance Sec, Post-facto approval).
  4. [THE STRATEGIC METACOGNITION]: When studying a process (like the Budget), map the 'Who' and the 'How'. Don't just know the Budget exists; know the *Budget Division* is in DEA. Don't just know Funds exist; know *who holds the key* (Parliament vs. Executive). The examiner loves swapping the 'Authority' (Parliament for Public Account is wrong) and the 'Agency' (Revenue for Budget is wrong).
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Budget Division (Department of Economic Affairs) prepares the Union Budget
💡 The insight

References explicitly name the Budget Division of the Department of Economic Affairs as the nodal agency that prepares the general/Union budget.

High-yield for UPSC: questions often ask which ministry/department prepares the budget. This concept links to Ministry of Finance organisational structure and helps eliminate distractors like Department of Revenue. Prepare by memorising the Budget Division → DEA → Ministry of Finance chain and cross-checking with budget documents.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > How is the Budget Prepared by the Government? > p. 119
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 146
🔗 Anchor: "Under the Union Government of India, is the Department of Revenue responsible fo..."
📌 Adjacent topic to master
S1
👉 Role and timing of budget presentation by the Finance Minister
💡 The insight

Evidence states the Finance Minister presents the General Budget on the first working day of February (or 1 Feb) and lists main budget documents.

Frequently tested procedural detail: timing, who presents the budget, and key documents (Annual Financial Statement, Demand for Grants, Appropriation Bill, Finance Bill). Useful for both polity and economy mains/CSAT questions; revise by reviewing procedural steps and document names.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.2 Budget Procedure > p. 148
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > How is the Budget Prepared by the Government? > p. 119
🔗 Anchor: "Under the Union Government of India, is the Department of Revenue responsible fo..."
📌 Adjacent topic to master
S1
👉 Constitutional controls on taxation and expenditure (Articles & bills)
💡 The insight

References cite Articles (e.g., Articles 265, 266, and Article 112 requirement) and explain that taxes/receipts require Finance Bill and expenditures require Appropriation Bill.

Core for polity-economy overlap: questions probe constitutional provisions governing fiscal powers and budgetary approvals. Master Articles, the distinction between charged and voted expenditure, and the associated bills to answer application-type and static-knowledge questions; integrate with budget procedure study.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 146
  • Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > 5.1 GOVERNMENT BUDGET — MEANING AND ITS COMPONENTS > p. 66
🔗 Anchor: "Under the Union Government of India, is the Department of Revenue responsible fo..."
📌 Adjacent topic to master
S2
👉 Appropriation Act & withdrawals from the Consolidated Fund
💡 The insight

All references tie withdrawal from the Consolidated Fund to an Appropriation Act and parliamentary procedures.

High-yield for UPSC: questions often test Article 266/appropriation procedure, vote on account, and limits on executive spending. Understanding the Appropriation Bill→Act process links finance, Parliament, and executive powers; practise by mapping budget stages and related articles.

📚 Reading List :
  • Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Stages in Enactment > p. 254
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 258
🔗 Anchor: "Does the Constitution of India require parliamentary authorization for any withd..."
📌 Adjacent topic to master
S2
👉 Contingency Fund vs Consolidated Fund
💡 The insight

References contrast the Contingency Fund (executive imprest, post-facto parliamentary approval) with the Consolidated Fund (requires prior parliamentary authorization).

Frequently examined distinction in polity/finance topics: tests separation of powers in emergency spending and post-facto sanction. Learn definitions, control mechanisms, and examples of use; useful for essays and prelim/static questions.

📚 Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Components of Fiscal Policy > p. 83
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.3 Government Accounts > p. 150
🔗 Anchor: "Does the Constitution of India require parliamentary authorization for any withd..."
📌 Adjacent topic to master
S2
👉 Public Account of India and parliamentary control
💡 The insight

Evidence notes that Public Account transactions are operated by executive action and do not require parliamentary appropriation, contrasting with the Consolidated Fund.

Important for distinguishing types of government accounts (CFI, CFI contingency, PAI) in MCQs and mains answers; helps explain where parliamentary control applies. Memorise functions and approval requirements for each account and practice comparing them.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Funds > p. 256
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Components of Fiscal Policy > p. 83
🔗 Anchor: "Does the Constitution of India require parliamentary authorization for any withd..."
📌 Adjacent topic to master
S3
👉 Public Account of India — executive operation vs parliamentary appropriation
💡 The insight

Multiple references state that the Public Account is operated by the executive and that payments from it can be made without parliamentary appropriation or vote.

High-yield for UPSC: candidates must distinguish funds where Parliament's vote is required versus those operated by the executive. This topic recurs in questions on budgetary control, parliamentary oversight, and financial constitution. Learn by comparing textbook definitions and constitutional provisions; practise fact-based recall and short explanations.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Funds > p. 256
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.3 Government Accounts > p. 151
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Components of Fiscal Policy > p. 83
🔗 Anchor: "Does the Constitution of India require parliamentary authorization for disbursem..."
🌑 The Hidden Trap

The 'Finance Secretary' is not a specific post but is usually the senior-most Secretary among the five departments. However, the 'Budget' is signed by the Secretary of Economic Affairs. Also, the Contingency Fund is held by the Finance Secretary on behalf of the President, not by the President directly.

⚡ Elimination Cheat Code

Logic for Statement 3: The Public Account contains 'other people's money' (Provident Funds, Savings). If the government needed Parliamentary authorization every time a citizen wanted to withdraw their PF or savings, the Parliament would never sleep. Thus, Public Account disbursements *must* be by executive action. This eliminates options B and D immediately.

🔗 Mains Connection

Mains GS3 (Fiscal Management): The 'Public Account' is often abused for 'Off-Budget Borrowing' (e.g., NSSF loans to FCI). Since it doesn't require Parliamentary vote (Statement 3), governments use it to bypass fiscal deficit targets, weakening Parliamentary oversight (GS2).

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SIMILAR QUESTIONS

IAS · 2024 · Q85 Relevance score: 5.03

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 ?

IAS · 2002 · Q87 Relevance score: 4.10

With reference to the Indian Public Finance consider the following statements: 1. External liabilities reported in Union Budget are based on historical exchange rates 2. The continued high borrowing has kept the real interest rates high in the economy 3. The upward trend in the ratio of Fiscal Deficit to GDP in recent years has an adverse effect to private investments. 4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government. Which of these statements are correct ?

IAS · 2009 · Q61 Relevance score: 3.87

With reference to Union Government, consider the following statements : 1. The Ministries/Departments of the Government of India are created by the Prime Minister on the advice of the Cabinet Secretary. 2. Each of the Ministries is assigned to a Minister by the President of India on the advice of the Prime Minister. Which of the statements given above is/are correct ?

IAS · 2009 · Q112 Relevance score: 3.54

With reference to Union Government, consider the following statements: 1. The Constitution of India provides that all Cabinet Ministers shall be compulsorily the sitting members of Lok Sabha only. 2. The Union Cabinet Secretariat operates under the direction of the Ministry of Parliamentary Affairs. Which of the statements given above is/are correct?

IAS · 2010 · Q106 Relevance score: 3.45

Which one of the following is responsible for the preparation and presentation of Union Budget of the Parliament?