i. Either creates liabilities for Government.

ii. or reduce assets of the Government.

iii. Non-Recurring in nature.

Example:- Borrowing and other liabilities, Recovery of Loans, other receipts like Dis-investments etc

i. Either creates assets .

ii. or reduces liabilities.

iii. Non-Recurring in nature.

Example:- Construction of school building, Repayment of Loans, Purchasing of shares, Land and Machinery

etc.

 

It is also known as ‘enactments of budget’ which means converting the bills into the act. Below are the six stages

through which the budget goes through in the parliament.

I. Presentation of Budget with Finance Minister’s speech.

II. General discussion of Budget.

III. Adjournment of house so that standing committees scrutinizes the demand for grant for a month.

IV. Voting on demand for grants in Lok Sabah

V. Passing of appropriation bill

VI. Finally, Passing of Finance bill

Let us see in detail:- 

 

Finance Minister presents the General Budget with a speech known as the ‘budget speech’. At the end of the speech in  the Lok Sabha, Rajya Sabha which can only discusss it and has no power to vote on the demand for grants. The  presentation  of budget include the economic survey report, economic classification, annual reports of ministries, explanatory memorandum of budget, taxation proposal.

 

General discussion on budget begins a few days after its presentation. It continue for three to four days. During this stage, the Lok Sabha can discuss the budget as a whole or  principle question involoved but no motion is moved or submitted for the vote of the House. The finance minister has right to reply at the end of discussion

 

After the general discuission on a budget is over, the House are adjourned for about three to four weeks. During the gap 24 departmental standing committees of parliamentr examine  and discuss the demands for grants of concerned ministers and prepare the report on them. These report are submitted to Lok and Rajya Sabha for consideration.

 

 

A demand becomes a grant after it has been duly voted. Voting of demands for grants is the exclusive privilege of the Lok Sabha not Rajya Sabha but the budget is discussed in both the house. Second the voting is confined to the votable part of the budget not the matters which are related to the expenditure charged upon the Consolidated Fund of India. The members at any stage of discussion move motion to reduce any demand of grant (known as cut motion). Cut motion are of three types:-

 

- Policy cut motion: - It shows disapproval of policy and state that the amount of the demand be reduced to Re 1 and these reduction automatically show their disinterest towards the policy.

 

- Economy cut motion:- Amount of the demand be reduced by a specified amount.

 

-Token cut motion:-  Demand be reduced by rs 100. The two conditions for this motion is  should release to one demand only and should clearly expresses and not contain arguments or defamatory statements.  on 26 days are allotted for the voting of demands. On the last day the speaker puts all the remaining "guillotine".

 

The appropriate bill becomes the appropriate act after it is assented to by the President The appropriate bill comes first then finance bill has to make revenue provision for the stipulated expenditure sanctioned by the parliament

 

The Finance bill when passed legalize the income side of the budget.  According to the Provisional Collection of Taxes Act, 1931, the Finance bill in India has to be passed within 75 days.  The Finance act completes the process of the enactment of the budget.

 

CONSTITUTIONAL PROVISION

The Constitution has also defined the relative roles or position of both the Houses of Parliament with regard to the enactment of the budget in the following way:

A money bill or finance bill dealing with taxation cannot be introduced in the Rajya Sabha-It must be introduced only in the Lok Sabha.

The Rajya Sabha has no power to vote on the demand for grants; it is the exclusive privilege of the Lok Sabha.

The   Rajya Sabha should return the Money bill (or Finance bill) to the Lok Sabha within fourteen days. The Lok Sabha can either accept or reject the recommendations made by Rajya Sabha in this regard.

ESTIMATES OF EXPENDITURE

In India's the government cannot spend from the democratic system, Consolidated Fund unless the expenditure is voted in the lower house of Parliament or State Assemblies. However, according to Article 112 (3) and Article 202 (3) of the Constitution of India, the following expenditure does not require a vote and is charged to the Consolidated Fund.

  The following expenses are charged on consolidated fund of India:

1. Emoluments and allowances of the President and other expenditure relating to his office

2. Salaries and allowances of the Chairman and the Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha

3. The debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt

4. Salaries, allowances, and pensions of the Judges of the Supreme Court

5. Pensions of the Judges of any High Court

6. Salary, allowances, and pension of the Comptroller and Auditor General of India

7. Salary, allowances, and pension of the chairman and members of the Union Public Service Commission

8. Administrative expenses of the Supreme Court, the office of the Comptroller and Auditor General of India and the Union Public Service Commission

9. Any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal

10. Any other expenditure declared by this Constitution or by Parliament by law to be so charged

##One interesting fact that Nirmala Sitharaman becomes First Women and 6^th Finance Minister to present Budget 5 times in a row.##

 

 

 

Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including newspapers