9.1. Annual Financial Statement/Budget

As per Article 112 of the Constitution, at the beginning of each financial year, the President of India causes to be laid before both the Houses of the 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’ or commonly known as the Budget for that financial year.

The Budget not only provides estimates but also presents an opportunity to the Government to review and explain its financial and economic policy and programmes to the Parliament. It is a money bill. The estimated expenditure shows separately in the Annual Financial Statement as:

1. Expenditure charged upon the Consolidated Fund of India

2. Expenditure to be made from the Consolidated Fund of India

The presentation of the Annual Financial Statement is followed by a general discussion in both the Houses of the Parliament. At this stage no motion is moved nor is the Budget put to vote. The role of the Rajya Sabha does not extend beyond this general discussion.

After this General discussion is over, estimates are then submitted in the form of demand for grants on particular heads and each particular head is then voted on in the House of People. While the estimates related to the expenditure charged upon the Consolidated Fund of India cannot be put to vote of the Parliament, each house can discuss any of these estimates. These include:

♤ Emoluments and allowances of President and expenditure of his/her office.

♤ Salary and allowance of Chairman, Vice Chairman of Upper house and Speaker, Deputy Speaker of Lower house.

♤ Salary, Allowances, Pensions of Judges of SC

♤ Pensions of judges of HC

♤ Salary, Allowances, Pensions of CAG.

♤ Salary, Allowances, Pensions of UPSC chairperson and its members

♤ Administrative expenses of the office of CAG, UPSC, and SC

♤ Debt charges for which Government of India is liable

♤ Sums required for enforcement of any judgment, decree etc.

♤ Other expenditure defined by an Act of Parliament to be charged on consolidated fund of India.

On the other hand, the estimates of the expenditure, other than those which are charged, are

placed before the Lok Sabha in the form of ‘demand for grants’ to be voted on.