jbp123/hello · Datasets at Hugging Face

instruction stringlengths 1 84	input stringlengths 1 85	output stringlengths 1 83
9. Any sum required to satisfy any judgement, decree or award	of any court or arbitral tribunal.	10. Any other expenditure declared by the Parliament to be so
charged.	Stages in Enactment	The budget goes through the following six stages in the
Parliament:	1. Presentation of budget.	2. General discussion.
3. Scrutiny by departmental committees.	4. Voting on demands for grants.	5. Passing of appropriation bill.
6. Passing of finance bill.	1. Presentation of Budget	Conventionally, the budget is presented to the Lok Sabha by the
finance minister on the last working day of February. Since 2017,	the presentation of the budget has been advanced to 1st of	February.
The Budget can also be presented to the House in two or more	parts and when such presentation takes place, each part shall be	dealt with as if it were the budget. Further, there shall be no
discussion of the budget on the day on which it is presented to the	House.	The finance minister presents the budget with a speech known
as the ‘budget speech’. At the end of the speech in the Lok	Sabha, the budget is laid before the Rajya Sabha, which can only	discuss it and has no power to vote on the demands for grants.
The budget documents presented to the Parliament comprise	of the following :	(i) Budget Speech
(ii) Annual Financial Statement	(iii) Demands for Grants	(iv) Appropriation Bill
(v) Finance Bill	(vi) Statements mandated under the FRBM Act:	(a) Macro-Economic Framework Statement
(b) Fiscal Policy Strategy Statement	(c) Medium Term Fiscal Policy Statement	(vii) Expenditure Budget
(viii) Receipts Budget	(ix) Expenditure Profile	(x) Memorandum Explaining the Provisions in the Finance Bill
(xi) Budget at a Glance	(xii) Outcome Budget	Earlier, the Economic Survey also used to be presented to the
Parliament along with the budget. Now, it is presented one day or	a few days before the presentation of the budget. This report is	prepared by the finance ministry and indicates the status of the
national economy.	2. General Discussion	The general discussion on budget begins a few days after its
presentation. It takes place in both the Houses of Parliament and	lasts usually for three to four days.	During this stage, the Lok Sabha can discuss the budget as a
whole or on any question of principle involved therein but no cut	motion can be moved nor can the budget be submitted to the vote	of the House. The finance minister has a general right of reply at
the end of the discussion.	3. Scrutiny by Departmental Committees	After the general discussion on the budget is over, the Houses are
adjourned for about three to four weeks. During this gap period,	the 24 departmental standing committees of Parliament examine	and discuss in detail the demands for grants of the concerned
ministers and prepare reports on them. These reports are	submitted to both the Houses of Parliament for consideration.	The standing committee system established in 1993 (and
expanded in 2004) makes parliamentary financial control over	ministries much more detailed, close, in-depth and	comprehensive.
4. Voting on Demands for Grants	In the light of the reports of the departmental standing	committees, the Lok Sabha takes up voting of demands for
grants. The demands are presented ministrywise. A demand	becomes a grant after it has been duly voted.	Two points should be noted in this context. One, the voting of
demands for grants is the exclusive privilege of the Lok Sabha,	that is, the Rajya Sabha has no power of voting the demands.	Second, the voting is confined to the votable part of the budget–
the expenditure charged on the Consolidated Fund of India is not	submitted to the vote (it can only be discussed).	Each demand is voted separately by the Lok Sabha. During this
stage, the members of Parliament can discuss the details of the	budget. They can also move motions to reduce any demand for	grant. Such motions are called as ‘cut motion’, which are of three
kinds:	(a) Policy Cut Motion	It represents the disapproval of the policy underlying the demand.
It states that the amount of the demand be reduced to Re 1. The	members can also advocate an alternative policy.	(b) Economy Cut Motion
It represents the economy that can be affected in the proposed	expenditure. It states that the amount of the demand be reduced	by a specified amount (which may be either a lumpsum reduction
in the demand or ommission or reduction of an item in the	demand).	(c) Token Cut Motion
It ventilates a specific grievance that is within the sphere of	responsibility of the Government of India. It states that the amount	of the demand be reduced by ₹100.
A cut motion, to be admissible, must satisfy the following	conditions:	(i) It should relate to one demand only.
(ii) It should be clearly expressed and should not contain	arguments or defamatory statements.	(iii) It should be confined to one specific matter.
(iv) It should not make suggestions for the amendment or repeal	of existing laws.	(v) It should not refer to a matter that is not primarily the
concern of Union government.	(vi) It should not relate to the expenditure charged on the	Consolidated Fund of India.
(vii) It should not relate to a matter that is under adjudication by a	court.	(viii) It should not raise a question of privilege.
(ix) It should not revive discussion on a matter on which a	decision has been taken in the same session.	(x) It should not relate to a trivial matter.
(xi) It should not reflect on the character or conduct of any	person whose conduct can only be challenged on a	substantive motion.
(xii) It should not anticipate a matter which has been previously	appointed for consideration in the same session.	(xiii) It should not seek to raise a discussion on a matter pending
before any statutory tribunal or statutory authority performing	judicial or quasi-judicial functions or any commission or court	of enquiry.
The significance of a cut motion lies in: (a) facilitating the	initiation of concentrated discussion on a specific demand for	grant; and (b) upholding the principle of responsible government
by probing the activities of the government. However, the cut	motion do not have much utility in practice. They are only moved	and discussed in the House but not passed as the government
enjoys majority support. Their passage by the Lok Sabha amounts	to the expressions of want of parliamentary confidence in the	government and may lead to its resignation.
On the last day of the days allotted for discussion and voting on	the demands for grants, the Speaker puts all the remaining	demands to vote and disposes them whether they have been
discussed by the members or not. This is known as ‘guillotine’.	5. Passing of Appropriation Bill	The Constitution states that ‘no money shall be withdrawn from
the Consolidated Fund of India except under appropriation made	by law’. Accordingly, an appropriation bill is introduced to provide	for the appropriation, out of the Consolidated Fund of India, all
(a) The grants voted by the Lok Sabha.	(b) The expenditure charged on the Consolidated Fund of India.	No such amendment can be proposed to the appropriation bill
in either house of the Parliament that will have the effect of	varying the amount or altering the destination of any grant voted,	or of varying the amount of any expenditure charged on the
Consolidated Fund of India.	The Appropriation Bill becomes the Appropriation Act after it is	assented to by the President. This act authorises (or legalises) the
payments from the Consolidated Fund of India. This means that	the government cannot withdraw money from the Consolidated	Fund of India till the enactment of the appropriation bill. This takes
time and usually goes on till the end of April. But the government	needs money to carry on its normal activities after 31 March (the	end of the financial year). To overcome this functional difficulty, the
Constitution has authorised the Lok Sabha to make any grant in	advance in respect to the estimated expenditure for a part of the	financial year, pending the completion of the voting of the
demands for grants and the enactment of the appropriation bill.	This provision is known as the ‘vote on account’. It is passed (or	granted) after the general discussion on budget is over. It is
generally granted for two months for an amount equivalent to one-	sixth of the total estimation.	6. Passing of Finance Bill
The Finance Bill is introduced to give effect to the financial	proposals of the Government of India for the following year. It is	subjected to all the conditions applicable to a Money Bill. Unlike
the Appropriation Bill, the amendments (seeking to reject or	reduce a tax) can be moved in the case of finance bill.	According to the Provisional Collection of Taxes Act of 1931,
the Finance Bill must be enacted (i.e., passed by the Parliament	and assented to by the president) within 75 days.	The Finance Act legalises the income side of the budget and
In addition to the budget that contains the ordinary estimates of	income and expenditure for one financial year, various other	grants are made by the Parliament under extraordinary or special
circumstances:	Supplementary Grant	It is granted when the amount authorised by the Parliament
through the appropriation act for a particular service for the	current financial year is found to be insufficient for that year.	Additional Grant
It is granted when a need has arisen during the current financial	year for additional expenditure upon some new service not	contemplated in the budget for that year.
Excess Grant	It is granted when money has been spent on any service during a	financial year in excess of the amount granted for that service in
the budget for that year. It is voted by the Lok Sabha after the	financial year. Before the demands for excess grants are	submitted to the Lok Sabha for voting, they must be approved by
the Public Accounts Committee of Parliament.	Vote of Credit	It is granted for meeting an unexpected demand upon the
resources of India, when on account of the magnitude or the	indefinite character of the service, the demand cannot be stated	with the details ordinarily given in a budget. Hence, it is like a
blank cheque given to the Executive by the Lok Sabha.	Exceptional Grant	It is granted for a special purpose and forms no part of the current
service of any financial year.	Token Grant	It is granted when funds to meet the proposed expenditure on a
new service can be made available by reappropriation. A demand	for the grant of a token sum (of Re 1) is submitted to the vote of	the Lok Sabha and if assented, funds are made available.
Reappropriation involves transfer of funds from one head to	another. It does not involve any additional expenditure.	Supplementary, additional, excess and exceptional grants and
vote of credit are regulated by the same procedure which is	applicable in the case of a regular budget.	Funds
The Constitution of India provides for the following three kinds of	funds for the Central government:	1. Consolidated Fund of India (Article 266)
2. Public Account of India (Article 266)	3. Contingency Fund of India (Article 267)	Consolidated Fund of India
It is a fund to which all receipts are credited and all payments are	debited. In other words, (a) all revenues received by the	Government of India; (b) all loans raised by the Government by
the issue of treasury bills, loans or ways and means of advances;	and (c) all money received by the government in repayment of	loans forms the Consolidated Fund of India. All the legally
authorised payments on behalf of the Government of India are	made out of this fund. No money out of this fund can be	appropriated (issued or drawn) except in accordance with a
parliamentary law.	Public Account of India	All other public money (other than those which are credited to the
Consolidated Fund of India) received by or on behalf of the	Government of India shall be credited to the Public Account of	India. This includes provident fund deposits, judicial deposits,
savings bank deposits, departmental deposits, remittances and so	on. This account is operated by executive action, that is, the	payments from this account can by made without parliamentary
appropriation. Such payments are mostly in the nature of banking	transactions.	Contingency Fund of India
The Constitution authorised the Parliament to establish a	‘Contingency Fund of India’, into which amounts determined by	law are paid from time to time. Accordingly, the Parliament
enacted the contingency fund of India Act in 1950. This fund is	placed at the disposal of the president, and he can make	advances out of it to meet unforeseen expenditure pending its
authorisation by the Parliament. The fund is held by the finance	secretary on behalf of the president. Like the public account of	India, it is also operated by executive action.
MULTIFUNCTIONAL ROLE OF PARLIAMENT	In the ‘Indian politico-administrative system’, the Parliament	occupies a central position and has a multifunctional role. It enjoys
extensive powers and performs a variety of functions towards the	fulfilment of its constitutionally expected role. Its powers and	functions can be classified under the following heads:
1. Legislative Powers and Functions	2. Executive Powers and Functions	3. Financial Powers and Functions
4. Constituent Powers and Functions	5. Judicial Powers and Functions	6. Electoral Powers and Functions
7. Other powers and functions.	1. Legislative Powers and Functions	The primary function of Parliament is to make laws for the
governance of the country. It has exclusive power to make laws on	the subjects enumerated in the Union List (which at present has	98 subjects, originally 97 subjects) and on the residuary subjects
(that is, subjects not enumerated in any of the three lists). With	regard to Concurrent List (which has at present 52 subjects,	originally 47 subjects), the Parliament has overriding powers, that
is, the law of Parliament prevails over the law of the state	legislature in case of a conflict between the two.	The Constitution also empowers the Parliament to make laws
on the subjects enumerated in the State List (which at present has	59 subjects, originally 66 subjects) under the following five	abnormal circumstances:
(a) when Rajya Sabha passes a resolution to that effect.	(b) when a proclamation of National Emergency is in operation.	(c) when two or more states make a joint request to the
Parliament.	(d) when necessary to give effect to international agreements,	treaties and conventions.
All the ordinances issued by the president (during the recess of	the Parliament) must be approved by the Parliament within six	weeks after its reassembly. An ordinance becomes inoperative if it
is not approved by the parliament within that period.	The Parliament makes laws in a skeleton form and authorises	the Executive to make detailed rules and regulations within the
framework of the parent law. This is known as delegated	legislation or executive legislation or subordinate legislation. Such	rules and regulations are placed before the Parliament for its
examination.	2. Executive Powers and Functions	The Constitution of India established a parliamentary form of
government in which the Executive is responsible to the	Parliament for its policies and acts. Hence, the Parliament	exercises control over the Executive through question-hour, zero

9. Any sum required to satisfy any judgement, decree or award

of any court or arbitral tribunal.

10. Any other expenditure declared by the Parliament to be so

charged.

Stages in Enactment

The budget goes through the following six stages in the

Parliament:

1. Presentation of budget.

2. General discussion.

3. Scrutiny by departmental committees.

4. Voting on demands for grants.

5. Passing of appropriation bill.

6. Passing of finance bill.

1. Presentation of Budget

Conventionally, the budget is presented to the Lok Sabha by the

finance minister on the last working day of February. Since 2017,

the presentation of the budget has been advanced to 1st of

February.

The Budget can also be presented to the House in two or more

parts and when such presentation takes place, each part shall be

dealt with as if it were the budget. Further, there shall be no

discussion of the budget on the day on which it is presented to the

House.

The finance minister presents the budget with a speech known

as the ‘budget speech’. At the end of the speech in the Lok

Sabha, the budget is laid before the Rajya Sabha, which can only

discuss it and has no power to vote on the demands for grants.

The budget documents presented to the Parliament comprise

of the following :

(i) Budget Speech

(ii) Annual Financial Statement

(iii) Demands for Grants

(iv) Appropriation Bill

(v) Finance Bill

(vi) Statements mandated under the FRBM Act:

(a) Macro-Economic Framework Statement

(b) Fiscal Policy Strategy Statement

(c) Medium Term Fiscal Policy Statement

(vii) Expenditure Budget

(viii) Receipts Budget

(ix) Expenditure Profile

(x) Memorandum Explaining the Provisions in the Finance Bill

(xi) Budget at a Glance

(xii) Outcome Budget

Earlier, the Economic Survey also used to be presented to the

Parliament along with the budget. Now, it is presented one day or

a few days before the presentation of the budget. This report is

prepared by the finance ministry and indicates the status of the

national economy.

2. General Discussion

The general discussion on budget begins a few days after its

presentation. It takes place in both the Houses of Parliament and

lasts usually for three to four days.

During this stage, the Lok Sabha can discuss the budget as a

whole or on any question of principle involved therein but no cut

motion can be moved nor can the budget be submitted to the vote

of the House. The finance minister has a general right of reply at

the end of the discussion.

3. Scrutiny by Departmental Committees

After the general discussion on the budget is over, the Houses are

adjourned for about three to four weeks. During this gap period,

the 24 departmental standing committees of Parliament examine

and discuss in detail the demands for grants of the concerned

ministers and prepare reports on them. These reports are

submitted to both the Houses of Parliament for consideration.

The standing committee system established in 1993 (and

expanded in 2004) makes parliamentary financial control over

ministries much more detailed, close, in-depth and

comprehensive.

4. Voting on Demands for Grants

In the light of the reports of the departmental standing

committees, the Lok Sabha takes up voting of demands for

grants. The demands are presented ministrywise. A demand

becomes a grant after it has been duly voted.

Two points should be noted in this context. One, the voting of

demands for grants is the exclusive privilege of the Lok Sabha,

that is, the Rajya Sabha has no power of voting the demands.

Second, the voting is confined to the votable part of the budget–

the expenditure charged on the Consolidated Fund of India is not

submitted to the vote (it can only be discussed).

Each demand is voted separately by the Lok Sabha. During this

stage, the members of Parliament can discuss the details of the

budget. They can also move motions to reduce any demand for

grant. Such motions are called as ‘cut motion’, which are of three

kinds:

(a) Policy Cut Motion

It represents the disapproval of the policy underlying the demand.

It states that the amount of the demand be reduced to Re 1. The

members can also advocate an alternative policy.

(b) Economy Cut Motion

It represents the economy that can be affected in the proposed

expenditure. It states that the amount of the demand be reduced

by a specified amount (which may be either a lumpsum reduction

in the demand or ommission or reduction of an item in the

demand).

(c) Token Cut Motion

It ventilates a specific grievance that is within the sphere of

responsibility of the Government of India. It states that the amount

of the demand be reduced by ₹100.

A cut motion, to be admissible, must satisfy the following

conditions:

(i) It should relate to one demand only.

(ii) It should be clearly expressed and should not contain

arguments or defamatory statements.

(iii) It should be confined to one specific matter.

(iv) It should not make suggestions for the amendment or repeal

of existing laws.

(v) It should not refer to a matter that is not primarily the

concern of Union government.

(vi) It should not relate to the expenditure charged on the

Consolidated Fund of India.

(vii) It should not relate to a matter that is under adjudication by a

court.

(viii) It should not raise a question of privilege.

(ix) It should not revive discussion on a matter on which a

decision has been taken in the same session.

(x) It should not relate to a trivial matter.

(xi) It should not reflect on the character or conduct of any

person whose conduct can only be challenged on a

substantive motion.

(xii) It should not anticipate a matter which has been previously

appointed for consideration in the same session.

(xiii) It should not seek to raise a discussion on a matter pending

before any statutory tribunal or statutory authority performing

judicial or quasi-judicial functions or any commission or court

of enquiry.

The significance of a cut motion lies in: (a) facilitating the

initiation of concentrated discussion on a specific demand for

grant; and (b) upholding the principle of responsible government

by probing the activities of the government. However, the cut

motion do not have much utility in practice. They are only moved

and discussed in the House but not passed as the government

enjoys majority support. Their passage by the Lok Sabha amounts

to the expressions of want of parliamentary confidence in the

government and may lead to its resignation.

On the last day of the days allotted for discussion and voting on

the demands for grants, the Speaker puts all the remaining

demands to vote and disposes them whether they have been

discussed by the members or not. This is known as ‘guillotine’.

5. Passing of Appropriation Bill

The Constitution states that ‘no money shall be withdrawn from

the Consolidated Fund of India except under appropriation made

by law’. Accordingly, an appropriation bill is introduced to provide

for the appropriation, out of the Consolidated Fund of India, all

(a) The grants voted by the Lok Sabha.

(b) The expenditure charged on the Consolidated Fund of India.

No such amendment can be proposed to the appropriation bill

in either house of the Parliament that will have the effect of

varying the amount or altering the destination of any grant voted,

or of varying the amount of any expenditure charged on the

Consolidated Fund of India.

The Appropriation Bill becomes the Appropriation Act after it is

assented to by the President. This act authorises (or legalises) the

payments from the Consolidated Fund of India. This means that

the government cannot withdraw money from the Consolidated

Fund of India till the enactment of the appropriation bill. This takes

time and usually goes on till the end of April. But the government

needs money to carry on its normal activities after 31 March (the

end of the financial year). To overcome this functional difficulty, the

Constitution has authorised the Lok Sabha to make any grant in

advance in respect to the estimated expenditure for a part of the

financial year, pending the completion of the voting of the

demands for grants and the enactment of the appropriation bill.

This provision is known as the ‘vote on account’. It is passed (or

granted) after the general discussion on budget is over. It is

generally granted for two months for an amount equivalent to one-

sixth of the total estimation.

6. Passing of Finance Bill

The Finance Bill is introduced to give effect to the financial

proposals of the Government of India for the following year. It is

subjected to all the conditions applicable to a Money Bill. Unlike

the Appropriation Bill, the amendments (seeking to reject or

reduce a tax) can be moved in the case of finance bill.

According to the Provisional Collection of Taxes Act of 1931,

the Finance Bill must be enacted (i.e., passed by the Parliament

and assented to by the president) within 75 days.

The Finance Act legalises the income side of the budget and

In addition to the budget that contains the ordinary estimates of

income and expenditure for one financial year, various other

grants are made by the Parliament under extraordinary or special

circumstances:

Supplementary Grant

It is granted when the amount authorised by the Parliament

through the appropriation act for a particular service for the

current financial year is found to be insufficient for that year.

Additional Grant

It is granted when a need has arisen during the current financial

year for additional expenditure upon some new service not

contemplated in the budget for that year.

Excess Grant

It is granted when money has been spent on any service during a

financial year in excess of the amount granted for that service in

the budget for that year. It is voted by the Lok Sabha after the

financial year. Before the demands for excess grants are

submitted to the Lok Sabha for voting, they must be approved by

the Public Accounts Committee of Parliament.

Vote of Credit

It is granted for meeting an unexpected demand upon the

resources of India, when on account of the magnitude or the

indefinite character of the service, the demand cannot be stated

with the details ordinarily given in a budget. Hence, it is like a

blank cheque given to the Executive by the Lok Sabha.

Exceptional Grant

It is granted for a special purpose and forms no part of the current

service of any financial year.

Token Grant

It is granted when funds to meet the proposed expenditure on a

new service can be made available by reappropriation. A demand

for the grant of a token sum (of Re 1) is submitted to the vote of

the Lok Sabha and if assented, funds are made available.

Reappropriation involves transfer of funds from one head to

another. It does not involve any additional expenditure.

Supplementary, additional, excess and exceptional grants and

vote of credit are regulated by the same procedure which is

applicable in the case of a regular budget.

Funds

The Constitution of India provides for the following three kinds of

funds for the Central government:

1. Consolidated Fund of India (Article 266)

2. Public Account of India (Article 266)

3. Contingency Fund of India (Article 267)

Consolidated Fund of India

It is a fund to which all receipts are credited and all payments are

debited. In other words, (a) all revenues received by the

Government of India; (b) all loans raised by the Government by

the issue of treasury bills, loans or ways and means of advances;

and (c) all money received by the government in repayment of

loans forms the Consolidated Fund of India. All the legally

authorised payments on behalf of the Government of India are

made out of this fund. No money out of this fund can be

appropriated (issued or drawn) except in accordance with a

parliamentary law.

Public Account of India

All other public money (other than those which are credited to the

Consolidated Fund of India) received by or on behalf of the

Government of India shall be credited to the Public Account of

India. This includes provident fund deposits, judicial deposits,

savings bank deposits, departmental deposits, remittances and so

on. This account is operated by executive action, that is, the

payments from this account can by made without parliamentary

appropriation. Such payments are mostly in the nature of banking

transactions.

Contingency Fund of India

The Constitution authorised the Parliament to establish a

‘Contingency Fund of India’, into which amounts determined by

law are paid from time to time. Accordingly, the Parliament

enacted the contingency fund of India Act in 1950. This fund is

placed at the disposal of the president, and he can make

advances out of it to meet unforeseen expenditure pending its

authorisation by the Parliament. The fund is held by the finance

secretary on behalf of the president. Like the public account of

India, it is also operated by executive action.

MULTIFUNCTIONAL ROLE OF PARLIAMENT

In the ‘Indian politico-administrative system’, the Parliament

occupies a central position and has a multifunctional role. It enjoys

extensive powers and performs a variety of functions towards the

fulfilment of its constitutionally expected role. Its powers and

functions can be classified under the following heads:

1. Legislative Powers and Functions

2. Executive Powers and Functions

3. Financial Powers and Functions

4. Constituent Powers and Functions

5. Judicial Powers and Functions

6. Electoral Powers and Functions

7. Other powers and functions.

1. Legislative Powers and Functions

The primary function of Parliament is to make laws for the

governance of the country. It has exclusive power to make laws on

the subjects enumerated in the Union List (which at present has

98 subjects, originally 97 subjects) and on the residuary subjects

(that is, subjects not enumerated in any of the three lists). With

regard to Concurrent List (which has at present 52 subjects,

originally 47 subjects), the Parliament has overriding powers, that

is, the law of Parliament prevails over the law of the state

legislature in case of a conflict between the two.

The Constitution also empowers the Parliament to make laws

on the subjects enumerated in the State List (which at present has

59 subjects, originally 66 subjects) under the following five

abnormal circumstances:

(a) when Rajya Sabha passes a resolution to that effect.

(b) when a proclamation of National Emergency is in operation.

(c) when two or more states make a joint request to the

Parliament.

(d) when necessary to give effect to international agreements,

treaties and conventions.

All the ordinances issued by the president (during the recess of

the Parliament) must be approved by the Parliament within six

weeks after its reassembly. An ordinance becomes inoperative if it

is not approved by the parliament within that period.

The Parliament makes laws in a skeleton form and authorises

the Executive to make detailed rules and regulations within the

framework of the parent law. This is known as delegated

legislation or executive legislation or subordinate legislation. Such

rules and regulations are placed before the Parliament for its

examination.

2. Executive Powers and Functions

The Constitution of India established a parliamentary form of

government in which the Executive is responsible to the

Parliament for its policies and acts. Hence, the Parliament

exercises control over the Executive through question-hour, zero