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Along with the Budget, the Finance Minister also places other documents before the Parliament which include The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by
Explanation
The correct answer is Option 4. The presentation of the Macro-Economic Framework Statement is a statutory requirement under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.
The FRBM Act was enacted to institutionalize financial discipline and reduce India's fiscal deficit. Section 3 of the Act mandates that the Central Government must lay three specific statements before both Houses of Parliament along with the Annual Financial Statement:
- The Macro-Economic Framework Statement
- The Medium-Term Fiscal Policy Statement
- The Fiscal Policy Strategy Statement
Regarding other options: Article 112 pertains to the Annual Financial Statement (Budget), while Article 110 defines Money Bills and Article 113 relates to the procedure for Estimates. These constitutional provisions do not mention the Macro-Economic Framework Statement. Similarly, it is not merely a parliamentary convention but a legal obligation created by the 2003 Act to ensure transparency in economic projections.
PROVENANCE & STUDY PATTERN
Guest previewThis is a classic 'Source of Authority' question. It tests a fundamental distinction: what does the Constitution mandate (Art 112) versus what do modern reform acts (FRBM 2003) mandate? It is a direct hit from standard sources like NCERT Macroeconomics and Vivek Singh.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Is the Macro-Economic Framework Statement presented with the Union Budget before Parliament mandated by a long-standing parliamentary convention?
- Statement 2: Do Article 112 and Article 110(1) of the Constitution of India mandate presentation of the Macro-Economic Framework Statement with the Union Budget before Parliament?
- Statement 3: Does Article 113 of the Constitution of India mandate presentation of the Macro-Economic Framework Statement with the Union Budget before Parliament?
- Statement 4: Does the Fiscal Responsibility and Budget Management Act, 2003 mandate that the Macro-Economic Framework Statement be presented with the Union Budget before Parliament?
- Explicitly states the FRBM Act, 2003 requires the Central Government to lay the Macro-economic Framework Statement before both Houses each financial year.
- Specifies the Statement must be laid along with the Annual Financial Statement and Demands for Grants, i.e., as part of budget-related parliamentary presentation.
- States the Macro-Economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003.
- Indicates the presentation is a statutory requirement under the FRBM Act and its rules rather than merely a parliamentary convention.
States that the Macro-Economic Framework Statement is placed along with the budget and lists possible bases including 'long-standing parliamentary convention' as an option.
A student could treat this as an explicit exam-style alternative and check which of the other listed legal sources (Articles, FRBM) are actually cited elsewhere to evaluate if convention alone is plausible.
Explicitly quotes the FRBM Act requirement that the Central Government shall lay the Macroeconomic Framework Statement before both Houses of Parliament each financial year.
A student can note this statutory mandate (FRBM Act 2003) and compare its date to any claim of a prior 'long-standing convention' to judge whether the practice is primarily statutory rather than merely conventional.
Lists the Macro-Economic Framework Statement as one of the 'Statements mandated under the FRBM Act' among budget documents presented to Parliament.
A student could use this pattern (budget documents being categorized as 'mandated under the FRBM Act') to infer that presentation is tied to statutory requirements rather than only to unwritten parliamentary custom.
States that the central government is to lay three named statements (including the Macroeconomic Framework Statement) before both Houses along with the Annual Financial Statement, and links this to the Act's application.
A student could combine this with the knowledge that FRBM is a statute to question whether the practice originates from legislation, thereby reducing likelihood that it's solely a long-standing convention.
Describes the formal routine and timing for presenting the budget and main budget documents to Parliament (first working day of February, FM speech, etc.).
A student could use this procedural pattern to investigate when specific documents (like the Macro-Economic Framework Statement) were first included in that formal presentation schedule—if inclusion dates coincide with FRBM enactment, it supports a statutory rather than purely conventional origin.
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This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.
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This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.
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