Budget and Money Bill

1. Introduction to Budget

  1. The Union Budget, also known as the Annual Financial Statement, is presented under Article 112 of the Constitution.
  2. It outlines the government's estimated receipts and expenditures for a financial year (April 1 to March 31).
  3. The Budget is a crucial instrument of fiscal policy.
  4. Prepared by the Ministry of Finance, it is presented by the Finance Minister.

2. Types of Budgets

  1. Revenue Budget: Deals with revenue receipts (taxes, dividends) and revenue expenditure.
  2. Capital Budget: Includes capital receipts (borrowings, loans) and capital expenditure (infrastructure, assets).

3. Budget Presentation and Passage

  1. The Budget is presented in the Lok Sabha by the Finance Minister.
  2. It is followed by a general discussion where members debate the government's fiscal policies.
  3. The Appropriation Bill and Finance Bill are introduced to authorize expenditure and taxation, respectively.
  4. The Rajya Sabha can discuss the Budget but has no power to vote on the Demand for Grants.

4. Money Bill (Article 110)

  1. A bill is deemed a Money Bill if it exclusively deals with taxation, borrowing, expenditure from the Consolidated Fund, or related matters.
  2. The decision whether a bill is a Money Bill lies solely with the Speaker of the Lok Sabha.
  3. Money Bills can only be introduced in the Lok Sabha, not the Rajya Sabha.
  4. The Rajya Sabha can suggest amendments but cannot reject or amend a Money Bill.
  5. The President must give assent to a Money Bill; withholding assent is not permitted.

5. Finance Bill

  1. The Finance Bill includes all financial proposals outlined in the Budget.
  2. It is introduced in the Lok Sabha after the Budget presentation.
  3. Unlike a Money Bill, the Finance Bill can include provisions beyond taxation and expenditure.

6. Key Features of the Budget Process

  1. The Budget promotes economic stability and reflects government priorities.
  2. Through the Budget, Parliament exercises control over the executive’s financial powers.
  3. The Vote on Account is used to meet expenditures for a short period until the Budget is passed.

7. Role of the Consolidated Fund

  1. All government receipts and expenditures are deposited in the Consolidated Fund of India.
  2. No amount can be withdrawn without the approval of Parliament.

8. Importance of Money Bills

  1. Money Bills ensure the smooth functioning of government by authorizing taxation and expenditure.
  2. They maintain a balance between the legislative and executive branches of the government.

9. Landmark Cases and Practices

  1. The Aadhar Act (2016) was passed as a Money Bill, sparking debates on its scope and Speaker's discretion.
  2. Money Bills must adhere strictly to provisions under Article 110 to avoid controversies.

10. Budget and Money Bill: Key Differences

  1. The Budget is a statement of financial estimates; the Money Bill is a legislative tool for taxation and expenditure.
  2. The Budget involves both Lok Sabha and Rajya Sabha, while the Money Bill restricts significant participation to the Lok Sabha.

Conclusion

The Budget and Money Bill are pivotal components of India's fiscal framework, ensuring accountability, transparency, and resource allocation in governance.

Category
Parliament
The Union Government
Indian Polity and Governance
What is a Money Bill?
Which article of the Indian Constitution defines a Money Bill?
Who has the final authority to decide whether a bill is a Money Bill?
In which house of Parliament is a Money Bill introduced?
What happens if the Rajya Sabha does not return a Money Bill within 14 days?
Which part of the budget provides details of revenue and expenditure?
Under which article is the Annual Financial Statement presented in Parliament?
What is a Vote on Account?
Who presents the Union Budget in Parliament?
What is the purpose of the Appropriation Bill?
Which house of Parliament cannot amend a Money Bill?
What is the maximum period for which Parliament can authorize a Vote on Account?
What is a Supplementary Grant?
Under which article is the procedure for passing a Money Bill mentioned?
What happens if the Budget is not passed by the Parliament before the beginning of the financial year?
Which fund is used for unanticipated expenditure without prior approval of Parliament?
What is the role of the Finance Bill in the budget process?
Which article deals with the Contingency Fund of India?
Who approves the Appropriation Bill?
Which of the following is not a feature of a Money Bill?
What is the Consolidated Fund of India?
Which body audits the accounts of the Union and State governments?
What is the difference between a Money Bill and a Financial Bill?
Which committee examines the detailed estimates in the budget?
What is the primary source of revenue for the Union Budget?
What is a Deficit Budget?
Which article of the Constitution provides for supplementary, additional, and excess grants?
What is the Fiscal Responsibility and Budget Management (FRBM) Act?
Which bill must be passed before the budget is implemented?
What is the role of the Public Accounts Committee regarding the budget?
Who certifies the Money Bill before it is introduced in Lok Sabha?
What is the procedure if the Appropriation Bill is defeated in Lok Sabha?
Which fund includes receipts from loans raised by the government?
Which article deals with the procedure for passing supplementary and excess grants?
What is the role of the Cut Motion in the budget process?
Who introduces the Finance Bill in Parliament?
What is the Public Account of India?