Question 77 from UPSC CSE 2024 - Polity & Governan ce

Question

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?

IASCODEX · Accepted Answer

Correct Option: B. 2 only

Strategy: The strategy involves evaluating statements based on constitutional protocols for budget presentation and demands for grants.
*   **Statement 1:** Verify the correct authorizing authority for the Annual Financial Statement.
*   **Statement 2:** Confirm the requirement for the President's recommendation for demands for grants.

Key Info: ## Union Budget and Constitutional Protocol

The Union Budget, formally known as the Annual Financial Statement, is a constitutional requirement under Article 112 of the Indian Constitution. It details the estimated revenues and expenditures of the Government of India for the forthcoming financial year and is presented yearly in Parliament. The constitutional process mandates that the President of India authorizes the laying of the Annual Financial Statement before both Lok Sabha and Rajya Sabha. The Union Finance Minister presents this statement in Parliament on behalf of the President, exercising executive privilege through constitutional delegation.

### Demands for Grants

Demands for Grants refer to the estimates of expenditure presented to the Lok Sabha by individual ministries and departments. Article 113 stipulates that no demand for a grant can be made in the Lok Sabha except on the recommendation of the President of India. This ensures executive oversight and control in financial matters at the Union level. The Budget process includes presentation, discussions, voting on demands for grants, and passing of the appropriation and finance bills.

### Roles of President and Prime Minister

The President's role is foundational and ceremonial but vital for necessary executive authorization. The Prime Minister's name is not directly invoked in budgetary procedure or statutory texts relating to the laying of the Annual Financial Statement. The Finance Minister is the government functionary who presents the budget, following constitutional and parliamentary convention. The constitutional safeguard ensures legislative control over expenditure and transparent governance.

IASCODEX · Answer

Option A: 1 only

IASCODEX · Answer

Option C: Both 1 and 2

IASCODEX · Answer

Option D: Neither 1 nor 2