Question

Difficulty: MediumUnion Legislature: Parliament Structure, Lawmaking, and Committees

Arrange the following procedural stages involved in the enactment of the Union Budget in the Lok Sabha in their correct chronological order from first to last:

  1. 1Presentation of the Budget in the Lok Sabha
  2. 2Scrutiny of Demands for Grants by Departmental Standing Committees
  3. 3Voting on Demands for Grants
  4. 4Passing of the Appropriation Bill
  5. 5Passing of the Finance Bill

Answer

The correct chronological sequence for the enactment of the Union Budget is: Presentation of the Budget in the Lok Sabha, followed by Scrutiny of Demands for Grants by Departmental Standing Committees, Voting on Demands for Grants, Passing of the Appropriation Bill, and finally Passing of the Finance Bill.
The enactment of the Union Budget follows six distinct stages: 1. Presentation of Budget, 2. General Discussion, 3. Scrutiny by Departmental Standing Committees (during recess), 4. Voting on Demands for Grants (in Lok Sabha), 5. Passing of Appropriation Bill (Article 114), and 6. Passing of Finance Bill. Thus, committee scrutiny precedes voting on grants, followed by the Appropriation Bill, and concluding with the Finance Bill.

Step-by-Step Solution

1
Identify the initial presentation stage of the Annual Financial Statement.
Presentation of the Budget in the Lok Sabha is the first step.
Under Article 112, the President causes the budget to be laid before Parliament, starting with the Finance Minister's speech in Lok Sabha.
2
Determine the committee stage following the general discussion.
Scrutiny of Demands for Grants by Departmental Standing Committees is the second step.
Parliament adjourns for a 3–4 week recess so departmental standing committees can evaluate ministry-specific expenditure proposals.
3
Identify the Lok Sabha voting procedure.
Voting on Demands for Grants is the third step.
Voting on demands for expenditure is an exclusive privilege of the Lok Sabha and takes place after committee reports are submitted.
4
Identify the statutory expenditure authorization step.
Passing of the Appropriation Bill is the fourth step.
Article 114 specifies that no money can be withdrawn from the Consolidated Fund of India without the passage of an Appropriation Bill.
5
Determine the legal authorization for government revenue and taxation.
Passing of the Finance Bill is the fifth step.
The Finance Bill legalizes income and taxation measures proposed by the government, concluding the financial business of the budget.

Key Concept

Procedural stages of the Enactment of Union Budget under Articles 112 to 114 of the Indian Constitution
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