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Q85 (IAS/2024) Polity & Governance › Parliament › Budgetary process Parliament Official Key

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 ?

Result
Your answer: —  Âˇ  Correct: C

Explanation

The correct answer is Option C (Both 1 and 2), based on the UPSC Official Answer Key 2024.

  • Statement 1 is considered correct: Although Article 112 of the Constitution states that the President shall cause the Annual Financial Statement to be laid before Parliament, the UPSC Official Key accepts the statement that the Finance Minister lays it on behalf of the Prime Minister (Head of Government). This reflects the practical parliamentary convention.
  • Statement 2 is correct: According to Article 113(3) of the Constitution, no demand for a grant shall be made except on the recommendation of the President of India.

Note: While strict constitutional interpretation favors Option B, the Official Key establishes Option C as the correct answer for this question.

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PROVENANCE & STUDY PATTERN

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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 Union Budget, consider the following statements : 1. The Union Finance Minister on behalf of the Prime Minister lays th…
At a glance
Origin: Books + Current Affairs Fairness: Moderate fairness Books / CA: 5/10 ¡ 5/10
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This is a classic 'Constitutional Text vs. TV Visuals' trap. While you see the Finance Minister speaking on TV, the Constitution (Art. 112) assigns the duty to the President. Statement 2 is a verbatim lift from Article 113. The question tests if you can distinguish between the 'formal authority' (President) and the 'functional agent' (Minister).

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
For India's Union Budget, does the Union Finance Minister, on behalf of the Prime Minister, lay the Annual Financial Statement before both Houses of Parliament?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"In respect of every financial year, the President causes to be laid before both Houses of Parliament an “annual financial statement” – a statement of the estimated receipts and expenditure of the Government of India."
Why this source?
  • Explicitly states who causes the Annual Financial Statement to be laid before Parliament.
  • Identifies the 'annual financial statement' (the Budget) as being laid before both Houses by the President.
Web source
Presence: 5/5
"Article 112 says that the President shall, in respect of every financial year, cause to be laid before both the Houses of Parliament, the House of People (Lok Sabha) and the Council of States (Rajya Sabha), a statement of the estimated receipts and expenditure of the Government for that year. This statement is known as the ‘Annual Financial Statement’."
Why this source?
  • Cites Article 112 and repeats that the President shall cause the Annual Financial Statement to be laid before both Houses.
  • Defines the Annual Financial Statement as the Budget, reinforcing that the President is the authority to lay it before Parliament.
Web source
Presence: 5/5
"112. Annual financial statement.— (1) The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, in this Part referred to as the "annual financial statement"."
Why this source?
  • Provides the constitutional text (Article 112) specifying the President's duty to lay the Annual Financial Statement before both Houses.
  • Makes clear the formal responsibility rests with the President, not with a Minister or Prime Minister in the quoted text.

Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 257
Strength: 5/5
“,Financial legislation At the beginning of every financial year, the Preside'nt in Parliament. shall,in respect of the financial year, cause to be laid before both the Houses of Parliament a statement of the Estimated receipts and expenditure of the Government of India for that year. This is known as the "annual financial statement" (i.e. the "Budget") [Article 112]. It also states the ways and means of meeting the estimated expenditure. Policy Statement in In conformity with the usual Parliamentary practice in the the Budget. ' United Kingdom, the Budget not only gives the estimates for the ensuing year but offers an opportunity to the Government to review and explain its financial and economic policy and programme to the Legislature to discuss and criticise it.”
Why relevant

States that the President 'shall cause to be laid before both the Houses of Parliament a statement ...' (the Annual Financial Statement) — identifies the constitutional source (Article 112) for who 'causes' the statement to be laid.

How to extend

A student could combine this constitutional attribution to the President with knowledge that the President normally acts on aid-and-advice of the Council of Ministers to ask whether a minister (not the PM) practically presents it.

Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 258
Strength: 5/5
“Relative parts played by the two Houses in financial legislation. As has been already explained. financial business in Parliament starts with the presenting of the Annual Financial Statement. This Statement is caused to be laid by the President before both Houses of Parliament [Article 112]. After the Annual Financial Statement is presented, there is a general discussion of the Statement as a whole in either House. This discussion is to be a general discussion relating to a policy involving a review and criticism of the administration and a valuation of the grievances of the people. No motion is moved at this stage nor is the Budget submitted to vote.”
Why relevant

Reiterates that financial business 'starts with the presenting of the Annual Financial Statement' and that it 'is caused to be laid by the President before both Houses' — emphasises the constitutional/formal actor is the President.

How to extend

Use this formal assignment plus practical parliamentary procedure to probe who physically presents the Statement in each House.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.2 Budget Procedure > p. 148
Strength: 5/5
“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

Explains actual parliamentary practice: 'The General Budget is presented in Lok Sabha by the finance minister ... and after the speech it is presented in the Rajya Sabha.'

How to extend

Combine this practice with the constitutional provision that the President 'causes' the Statement to be laid to infer a distinction between formal (President) and practical (Finance Minister) roles.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
Strength: 4/5
“The finance minister shall review, on half-yearly basis, the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews.• 10.Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament.• 11.The Central Government may entrust the CAG of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.• 12.Central government shall lay, in each financial year, before both the houses of parliament, the following statements of fiscal policy along with the budget document: • (a) Medium Term Fiscal Policy Statement• (b) Fiscal Policy Strategy Statement• (c) Macroeconomic Framework Statement• (d) 'Medium-Term expenditure Framework Statement' should be laid in the session immediately following the session of the Parliament in which the budget has been presented)”
Why relevant

FRBM-related text says 'The finance minister shall review ... and place before both Houses of Parliament the outcome of such reviews' and requires several fiscal statements to be laid 'along with the budget document' — showing a statutory role for the Finance Minister in placing fiscal documents before both Houses.

How to extend

A student could extend this pattern to argue that the Finance Minister routinely performs the tangible act of laying financial statements before Parliament, even if the President is the constitutional source.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 92: World Constitutions > STATEMENT_I AND STATEMENT_II PATTERN > p. 782
Strength: 3/5
“Answer the following questions by using the codes given below: l (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement_II is not the correct explanation for Statement-I (e) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct 128. Statement-I: A minister at the Central level can be dismissed by the Prime Minister. Statement-II: A minister is appointed by President only on the advice of Prime Minister. • 129. Statement-I: The Finance Commission facilitates the maintenance of financial balance between the Union and the states in the Indian federal system.”
Why relevant

States as a general rule that 'a minister is appointed by President only on the advice of Prime Minister' — showing the PM's central role in ministerial appointments and influence over ministers.

How to extend

A student might combine this with the evidence that the Finance Minister presents the budget to infer whether the Finance Minister acts 'on behalf of' the PM (i.e., as the PM's ministerial agent), noting this is an inference rather than a documented procedural fact in the snippets.

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SIMILAR QUESTIONS

IAS ¡ 2015 ¡ Q60 Relevance score: 4.78

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?

IAS ¡ 2002 ¡ Q87 Relevance score: 3.44

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: 3.13

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 ?

CAPF ¡ 2008 ¡ Q39 Relevance score: 3.12

Consider the following statements : 1. The Prime Minister of India is the ex-officio Chairman of the Planning Commission. 2. The Union Finance Minister is the ex-officio Chairman of the Finance Commission. Which of the statements given above is/are correct ?

IAS ¡ 2021 ¡ Q98 Relevance score: 2.95

With reference to the Union Government, consider the following statements : 1. N. Gopalaswamy Iyengar Committee suggested that a minister and a secretary be designated solely for pursuing the subject of administrative reform and promoting it. 2. In 1970, the Department of Personnel was constituted on the recommendation of the Administrative Reforms Commission, 1966, and this was placed under the Prime Minister's charge. Which of the statements given above is/are correct?