Important Constitutional Provisions Related To Budget:
Financial business in Parliament consists of the Budget comprising of
General Budget and Railway Budget, Demands for Grant, Vote on
Account, Supplementary Demands for Grant, Appropriation Bill and the
Finance Bill.
The salient Constitutional provisions that shape and guide the
The salient Constitutional provisions that shape and guide the
budgeting systems and process are outlined in brief
as under-
1.) Article 112- Annual Financial Statement
shows estimated receipts and expenditure of the Government of India for 2013-14 in relation to estimates for 2012-13 as also expenditure for the year 2011-12. The receipts and disbursements are shown under the three parts, in which Government Accounts are kept viz.,(i) Consolidated Fund, (ii) Contingency Fund and (iii) Public Account.
2.) Article 113--Procedure in Parliament with respect to Estimates.
the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha are submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement. Generally, one Demand for Grant is presented in
1.) Article 112- Annual Financial Statement
shows estimated receipts and expenditure of the Government of India for 2013-14 in relation to estimates for 2012-13 as also expenditure for the year 2011-12. The receipts and disbursements are shown under the three parts, in which Government Accounts are kept viz.,(i) Consolidated Fund, (ii) Contingency Fund and (iii) Public Account.
2.) Article 113--Procedure in Parliament with respect to Estimates.
the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha are submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement. Generally, one Demand for Grant is presented in
respect of each Ministry or Department And UTs
3.)Article 114- Appropriation Bills.
No amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament. After the Demands for Grants are voted by the Lok Sabha, Parliament’s approval to the withdrawal from the Consolidated Fund of the amounts so voted and of the
3.)Article 114- Appropriation Bills.
No amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament. After the Demands for Grants are voted by the Lok Sabha, Parliament’s approval to the withdrawal from the Consolidated Fund of the amounts so voted and of the
amount required to meet the expenditure charged on the
Consolidated Fund is sought through the Appropriation Bill.
4.) Article 115- Supplementary, Additional or Excess Grants.
The President shall
If the amount authorised by any law made in accordance with the provisions of article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisenduring the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year,
It will be subjected to CAG and PAC
5.)Article 265- Taxes not to be imposed save by authority of law.
4.) Article 115- Supplementary, Additional or Excess Grants.
The President shall
If the amount authorised by any law made in accordance with the provisions of article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisenduring the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year,
It will be subjected to CAG and PAC
5.)Article 265- Taxes not to be imposed save by authority of law.
No tax shall be levied or collected except by authority of law.
6.)Article 266- Consolidated Funds and Public Accounts of India and of the States.
all revenues received by the Government of India , all loans raised and all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled “the Consolidated Fund of India”,
All other public moneys received by or on behalf of
the Government of India or the Government
of a State shall be credited to the public account of India
7.)Article 267- Contingency Fund.
Parliament may establish contingence fund by law to use money for unforeseen ( like disaster ) situations , current provision is Rs.500 crores
8.) Article 275- Grants from the Union to certain States.
Such sums as Parliament may by law provide shall be charged on the Consolidated Fund of India in each year as grants in aid of the revenues of such States as Parliament may determine to be in need of assistance, and different sums may be fixed for different States:
9.) Article 280- Finance Commission.
The President shall, within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other members to be appointed by the President
(2)It shall be the duty of the Commission to make recommendations to the President as to
(a) the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds;
10. )Article 281- Recommendations of the Finance Commission.
7.)Article 267- Contingency Fund.
Parliament may establish contingence fund by law to use money for unforeseen ( like disaster ) situations , current provision is Rs.500 crores
8.) Article 275- Grants from the Union to certain States.
Such sums as Parliament may by law provide shall be charged on the Consolidated Fund of India in each year as grants in aid of the revenues of such States as Parliament may determine to be in need of assistance, and different sums may be fixed for different States:
9.) Article 280- Finance Commission.
The President shall, within two years from the commencement of this Constitution and thereafter at the expiration of every fifth year or at such earlier time as the President considers necessary, by order constitute a Finance Commission which shall consist of a Chairman and four other members to be appointed by the President
(2)It shall be the duty of the Commission to make recommendations to the President as to
(a) the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under this Chapter and the allocation between the States of the respective shares of such proceeds;
10. )Article 281- Recommendations of the Finance Commission.
11.) Article
292- Borrowing by the Government ofIndia.
Form of accounts of the Union and of the States The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India, prescribe
13.) Article 151- Audit reports- CAG
14.) Article 109 – special procedure for money bill
15.) Article 110- Definition of “Money Bills’’.
Form of accounts of the Union and of the States The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India, prescribe
13.) Article 151- Audit reports- CAG
14.) Article 109 – special procedure for money bill
15.) Article 110- Definition of “Money Bills’’.
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