Procedure of Passing Budget
→ Budget or Annual Financial Statement shows:
1)Sum required to meet Expenditure
charged upon consolidated fund.
→Various expenditure that
are charged on consolidated fund:
1. Emoluments and allowances of the President and other
expenditure relating to his office
2. Salaries and allowances of the Chairman and the Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha
3. The debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt
4. Salaries, allowances, and pensions of the Judges of the Supreme Court
5. Pensions of the Judges of any High Court
6. Salary, allowances, and pension of the Comptroller and Auditor General of India
7. Salary, allowances, and pension of the chairman and members of the Union Public Service Commission
8. Administrative expenses of the Supreme Court, the office of the Comptroller and Auditor General of India and the Union Public Service Commission
9. Any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal
10. Any other expenditure declared by this Constitution or by Parliament by law to be so charged
→ Stages through which Budget goes through in Parliament:
1. Presentation of budget
2. General discussion
3. Scrutiny by departmental committees
4. Voting on demands of grants
5. Passing of the appropriation bill
6. Passing of finance bill
Understand each one in
detail:
> Presentation of Budget:
--Budget is presented in Lok Sabha.
--Usually present in 1 per year ….except on election year there may be an
interim budget in addition to General
budget.
--Budget is presented === it means “Speech by Finance Minister”.
--Then budget is laid befor Rajya Sabha…..here budget is only
discussed…Rajya Sabha has No voting
rights (Lok Sabha vote on demand for grants(specified in
budget) but not at this stage……it votes after
Departmental
committes has submitted
their reports)
--Immediately after the presentation of the Budget, the following three
statements under the Fiscal Responsibility and Budget Management Act, 2003 (FRBM)are also laid on the Table of Lok
Sabha:
(i) The Medium-Term Fiscal Policy
Statement;
(ii) The Fiscal Policy Strategy
Statement; and
(iii) The Macro-Economic Framework
Statement
> General Discussion:
--After few days of presenting budget…..General discussion starts…and continues
for 3-4 days.
--Scope of discussion=
General scheme+ Structure of Budget To which FM can reply.
>Scrutiny by Departmental committees:
--After General discussion
is over…..House is adjourned for a
fixed period(by speaker).
--During this period of adjournment….Demand for Grant is examined by various Departmental Standing Committee(Total
24 Standing Committee).
--Departmental Committees prepare separate report on budget of each ministry.
--They submit these report to both the house of parliament.
> Voting on Demand of Grants:
--Voting converts Demand into Grant.
--Only Lok Sabha votes….but report of Departmental committee is discussed
in both the house.
--Voting is done only on Expenditure charged on Consolidated fund of
India.
--MPs (Lok Sabha) can pass various Motion
to influence budget expenditure…..Click here for various cut motion.
>Passing
of Appropriation Bill:
--After demand is converted into Grant by successful voting in Lok Sabha….. an
Appropriation bill is passed.
--no ammendement is possible by MPs as they have already voted ….
--Why appropriation bill?
=it’s a symbolic gesture that…I(Executive Gov) demanded some money from
you(Parliament)….and you granted the
permission(Voting done by Lok Sabha)……hence now I am taking or
appropriating the money and now I don’t need
to ask again as its mine(appropriation bill can’t be ammended by MPs).
>Passing
of the Finance bill:
--To know more about finance bill…click
here..
--It is introduced immidiately after the presentation of Budget….that is along with
General discussion But
--introduction of Finance Bill can not be opposed.
-- According to the Provisional Collection of Taxes Act, 1931, the finance bill
has to be passed by parliament and assented to by the president before the
expiry of the seventy-fifth day after the day on which it was introduced.
-- As the finance bill contains taxation
proposals, it is considered and passed
by the Lok Sabha only after the demands for grants have been voted
and the total expenditure is known.
--after finance bill is passed….Budget process is complete.
Read more about different type of grants .....click here
Comments
Post a Comment