With reference to Union Budget, consider the following statements:

1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the House of Parliament.
2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation

Statement 1 is correct

• Article 112 says that the President shall, in respect of every financial year, cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, in this Part referred to as the “annual financial statement“.
• Note: As per the UPSC official answer key, this statement is correct.

Statement 2 is correct

• Article 113 of the Constitution states that any proposal or estimate seeking the withdrawal of money from the Consolidated Fund of India should be presented to the Lok Sabha in the form of a Demand for Grants. Demand for Grants is an expenditure estimate, including provisions related to revenue expenditure, capital expenditure, and grants, that is expected to be incurred in the next financial year. Hence, each ministry presents its own Demand for Grants in the Lok Sabha as part of the Union Budget. However, Article 113 (iii) prescribes that no demand for grants can be presented in the Lok Sabha without the President of India’s prior approval.

Answer: (c) Both 1 and 2; Difficulty Level: Hard