Indian Polity — Budget in the Parliament
1. Stages in the Enactment of Budget
- Presentation of Budget
- General Discussion
- Scrutiny by Departmental Committees
- Voting on Demands for Grants
- Passing of Appropriation Bill
- Passing of Finance Bill
1. Presentation of Budget
- Conventionally, the budget is presented to the Lok Sabha by the Finance Minister on the last working day of February.
- Since 2017, the budget presentation has been advanced to the 1st of February.
- There shall be no discussion of the budget on the day on which it is presented to the House.
- The Finance Minister presents the budget with a speech known as the 'budget speech'.
2. General Discussion
- The general discussion on the budget begins a few days after its presentation. It takes place in both Houses of Parliament and usually lasts for three to four days.
- During this stage, the Lok Sabha can discuss the budget as a whole or on any question of principle involved therein, but no cut motion can be moved nor can the budget be submitted to the vote of the House.
3. Scrutiny by Departmental Committees
- After the general discussion on the budget is over, the Houses are adjourned for about three to four weeks.
- During this gap period, the 24 departmental standing committees of Parliament examine and discuss in detail the demands for grants of the concerned ministries and prepare reports on them.
- These reports are submitted to both the Houses of Parliament for consideration.
4. Voting on Demands for Grants
- The Lok Sabha takes up voting on demands for grants. The demands are presented ministry-wise.
- A demand becomes a grant after it has been duly voted.
- The voting of demands for grants is the exclusive privilege of the Lok Sabha — the Rajya Sabha has no power of voting the demands.
Cut Motions
- Members can move motions to reduce any demand for grant. Such motions are called 'cut motions', which are of three types:
| Type | Description | Reduction |
|---|---|---|
| Policy Cut Motion | Represents disapproval of the policy underlying the demand | Reduced to Rs. 1 |
| Economy Cut Motion | Represents economy that can be affected in the proposed expenditure | Reduced by a specified amount |
| Token Cut Motion | Ventilates a specific grievance within the sphere of responsibility of the Government | Reduced by Rs. 100 |
5. Passing of Appropriation Bill
- The Constitution states that 'no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law'.
- An Appropriation Bill is introduced to provide for the appropriation, out of the Consolidated Fund of India, all money required to meet:
- The grants voted by the Lok Sabha
- The expenditure charged on the Consolidated Fund of India
- No amendment can be proposed to the Appropriation Bill in either House that will have the effect of varying the amount or altering the destination of any grant voted.
- The Appropriation Bill becomes the Appropriation Act after it is assented to by the President.
- This act authorises the payments from the Consolidated Fund of India.
- Vote on Account: The Constitution allows Lok Sabha to grant funds in advance for estimated expenses before completing voting and passing the Appropriation Bill.
- It is passed after the general discussion on the budget is over.
- Generally granted for two months for an amount equivalent to one-sixth of the total estimation.
6. Passing of Finance Bill
- The Finance Bill is introduced to give effect to the financial proposals of the Government of India for the following year.
- It is subjected to all the conditions applicable to a Money Bill.
- According to the Provisional Collection of Taxes Act of 1931, the Finance Bill must be enacted within 75 days.
- The Finance Act legalises the income side of the budget and completes the process of the enactment of the budget.
KEY POINTS
- Budget Presentation: 1st February (since 2017)
- General Discussion: 3-4 days — no cut motions
- Departmental Committees: 24 committees — 3-4 weeks scrutiny
- Voting: Exclusive privilege of Lok Sabha
- Vote on Account: 2 months — 1/6 of total estimation
- Finance Bill: Must be enacted within 75 days
2. Ordinary Bill vs Money Bill
| Feature | Ordinary Bill | Money Bill |
|---|---|---|
| Introduction | Can be introduced in either House | Lok Sabha only |
| Introduced By | Minister or Private Member | Minister only |
| President's Recommendation | Not required | Required |
| Rajya Sabha's Power | Can amend or reject | Cannot amend or reject |
| Rajya Sabha Detention | Maximum 6 months | Maximum 14 days |
| Speaker's Certification | Not required | Required |
| President's Assent | Can approve, reject, or return | Can approve or reject (cannot return) |
3. Financial Bill (I) vs Financial Bill (II)
| Feature | Financial Bill (I) [Article 117(1)] | Financial Bill (II) [Article 117(3)] |
|---|---|---|
| Content | Contains exclusive matters of Article 110 + other matters of general legislation | Contains provisions involving expenditure from Consolidated Fund of India, but does not include Article 110 matters |
| Introduction | Lok Sabha only | Both Houses |
| President's Recommendation | Required for introduction | Not required for introduction, but required at consideration stage |
| Procedure | Governed by the same legislative procedure applicable to an ordinary bill | |
4. Devices of Parliamentary Proceedings
Question Hour
- The first hour of every parliamentary sitting is slotted for the Question Hour.
- Starred Question: Requires an oral answer — supplementary questions can follow.
- Unstarred Question: Requires a written answer — no supplementary questions.
- Short Notice Question: Asked by giving a notice of less than ten days — answered orally.
Zero Hour
- Starts immediately after the Question Hour and lasts until the agenda for the day is taken up.
- It is an Indian innovation in parliamentary procedures and has been in existence since 1962.
Motions
- No discussion on a matter of general public importance can take place except on a motion made with the consent of the presiding officer.
- Substantive Motion: Self-contained, independent proposal (e.g., impeachment of President).
- Substitute Motion: Moved in substitution of an original motion, proposing an alternative.
- Subsidiary Motion: Has no meaning by itself without reference to the original motion.
Closure Motion
- Moved to cut short the debate on a matter before the House.
- Four types:
- Simple Closure: "Matter having been sufficiently discussed be now put to vote."
- Closure by Compartments: Clauses grouped into parts; debate covers the part as a whole.
- Kangaroo Closure: Only important clauses debated; intervening clauses skipped.
- Guillotine Closure: Undiscussed clauses put to vote along with discussed ones due to want of time.
Privilege Motion
- Concerned with the breach of parliamentary privileges by a minister.
- Moved when a minister has committed a breach of privilege by withholding facts or giving wrong or distorted facts.
Calling Attention Motion
- Introduced to call the attention of a minister to a matter of urgent public importance.
- It is an Indian innovation in parliamentary procedure and has been in existence since 1954.
Adjournment Motion
- Introduced to draw the attention of the House to a definite matter of urgent public importance.
- Needs the support of 50 members to be admitted.
- Involves censure against the government — Rajya Sabha is not permitted to use this device.
- The discussion should last for not less than two hours and thirty minutes.
No-Confidence Motion
- Article 75: Council of Ministers shall be collectively responsible to the Lok Sabha.
- Needs the support of 50 members to be admitted.
Confidence Motion
- Governments with wafer-thin majorities may be called upon to prove their majority.
- If the confidence motion is negatived, it results in the fall of the government.
Censure Motion
- States the reasons for its adoption in the Lok Sabha.
- Can be moved against an individual minister, a group, or the entire council of ministers.
- If passed, the council of ministers need not resign from the office.
Motion of Thanks
- The first session after each general election and the first session of every fiscal year is addressed by the President.
- This motion must be passed in the House. Otherwise, it amounts to the defeat of the Government.
Dilatory Motion
- A motion for the adjournment of the debate on a bill/motion/resolution.
- Can be moved at any time after a motion has been made.
- If the Speaker considers it an abuse of rules, he may forthwith put the question or decline to propose it.
Point of Order
- Raised when proceedings do not follow the normal rules of procedure.
- Usually raised by an opposition member to control the government.
- It is an extraordinary device that suspends proceedings. No debate is allowed on a point of order.
Special Mention
- A matter which cannot be raised through other devices can be raised under Special Mention in the Rajya Sabha.
- Its equivalent in the Lok Sabha is known as 'Notice (Mention) Under Rule 377'.
Resolutions
- A self-contained, independent proposal submitted for the approval of the House. All resolutions are substantive motions.
- Private Member's Resolution: Moved by private member — discussed on alternate Fridays.
- Government Resolution: Moved by minister — can be taken up any day from Monday to Thursday.
- Statutory Resolution: Moved by either — tabled in pursuance of a provision in the Constitution or an Act of Parliament.
5. Summary: Budget and Parliamentary Devices at a Glance
| Topic | Key Details |
|---|---|
| Budget Presentation | 1st February (since 2017) — Finance Minister |
| Vote on Account | 2 months — 1/6 of total estimation |
| Finance Bill | Must be enacted within 75 days |
| Cut Motions | Policy (Rs.1), Economy (specified amount), Token (Rs.100) |
| No-Confidence Motion | 50 supporters — Article 75 — Lok Sabha only |
| Adjournment Motion | 50 supporters — Not in Rajya Sabha — 2.5 hours discussion |
| Censure Motion | Reasons required — Government need not resign |
| Zero Hour | Indian innovation — 1962 |
| Money Bill | Lok Sabha only — Rajya Sabha can detain for 14 days — Speaker's certification |
Key Takeaways for UPSC
- Budget Stages: Presentation → General Discussion → Scrutiny by Committees → Voting on Grants → Appropriation Bill → Finance Bill
- Vote on Account: 2 months — 1/6 of total estimation
- Cut Motions: Policy (Rs.1), Economy (specified amount), Token (Rs.100)
- Finance Bill: Must be enacted within 75 days
- Money Bill: Lok Sabha only — 14 days detention by Rajya Sabha — Speaker's certification final
- No-Confidence Motion: 50 supporters — Article 75 — only in Lok Sabha
- Adjournment Motion: 50 supporters — not in Rajya Sabha — 2.5 hours discussion
- Censure Motion: Government need not resign
- Zero Hour: Indian innovation (1962)
- Closure Motion: Simple, Compartments, Kangaroo, Guillotine
High-Yield Interactive UPSC Quiz (Budget in Parliament)
Q1. Since which year has the budget presentation been advanced to 1st February?
Correct Answer: C. Since 2017, the budget presentation has been advanced to the 1st of February.
Q2. How many departmental standing committees examine the demands for grants?
Correct Answer: B. There are 24 departmental standing committees of Parliament that examine and discuss in detail the demands for grants.
Q3. A Policy Cut Motion reduces the demand to:
Correct Answer: C. A Policy Cut Motion reduces the amount of the demand to Rs. 1.
Q4. A Token Cut Motion reduces the demand by:
Correct Answer: D. A Token Cut Motion reduces the amount of the demand by Rs. 100.
Q5. A Vote on Account is generally granted for:
Correct Answer: B. A Vote on Account is generally granted for two months for an amount equivalent to one-sixth of the total estimation.
Q6. The Finance Bill must be enacted within how many days?
Correct Answer: C. According to the Provisional Collection of Taxes Act of 1931, the Finance Bill must be enacted within 75 days.
Q7. A Money Bill can be introduced in which House?
Correct Answer: B. A Money Bill can be introduced in the Lok Sabha only, and only on the recommendation of the President.
Q8. The Rajya Sabha can detain a Money Bill for a maximum of:
Correct Answer: C. The Rajya Sabha can detain a Money Bill for a maximum period of 14 days only.
Q9. Which motion requires the support of 50 members to be admitted?
Correct Answer: B. An Adjournment Motion needs the support of 50 members to be admitted. A No-Confidence Motion also needs 50 supporters.
Q10. Zero Hour is an Indian innovation that has been in existence since:
Correct Answer: C. Zero Hour is an Indian innovation in parliamentary procedures and has been in existence since 1962.