Which of the following are the methods of Parliamentary control over public finance in India?

1. Placing Annual Financial Statement before the Parliament.
2. Withdrawal of money from Consolidated Fund of India only after passing the Appropriation Bill.
3. Provisions of supplementary grants and vote-on-account.
4. A periodic or at least a mid-year review of programmes of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office.
5. Introducing the Finance Bill in the Parliament.

Select the correct answer using the code given below:

1. 1, 2, 3 and 5 only
2. 1, 2 and 4 only
3. 3, 4 and 5 only
4. 1, 2, 3, 4 and 5

Explanation

Option (a) is correct

• Parliament exercises control over public finance in India through several established methods:
• Placing the Annual Financial Statement (Budget): The Constitution mandates that the government place the Annual Financial Statement before Parliament, detailing expected revenues and expenditures for the financial year.
• Appropriation Bill: Withdrawal of funds from the Consolidated Fund of India requires approval via the Appropriation Bill.
• Supplementary Grants and Vote-on-Account: Supplementary grants provide additional funding for unforeseen expenditures, while a vote-on-account allows the government to meet essential expenditures before the full budget is passed.
• Periodic/Mid-Year Review by Parliamentary Budget Office: This is not an established method in India. While some countries have Parliamentary Budget Offices for regular reviews, India does not have such a system in place.
• Introducing the Finance Bill: The Finance Bill, introduced in Parliament, contains provisions related to taxation and government revenue, which require parliamentary approval.

Answer: (a) 1, 2, 3 and 5 only; Difficulty Level: Medium