UPSC Prelims 2012 Q35: Indian Polity – Parliament & State Legislatures
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 moneys 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 programme of the Government against
macroeconomic forecasts and expenditure by a Parliamentary Budget Office
5. Introducing Finance Bill in the Parliament
Select the correct answer using the codes given below:
- (a) 1, 2, 3 and 5 only
- (b) 1, 2 and 4 only
- (c) 3, 4 and 5 only
- (d) 1, 2, 3, 4 and 5
Answer: (a) 1, 2, 3 and 5 only
Explanation
Parliamentary control over public finance
| Method | A method in India? | Basis |
|---|---|---|
| 1. Placing Annual Financial Statement before the Parliament | Yes | Article 112; this is the Budget |
| 2. Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill | Yes | Article 114 |
| 3. Provisions of supplementary grants and vote-on-account | Yes | Articles 115 and 116 |
| 4. A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office | No | India has no Parliamentary Budget Office |
| 5. Introducing Finance Bill in the Parliament | Yes | Article 265: no tax without the authority of law |
Other tools of control:
| Tool | Role |
|---|---|
| Cut motions | Reduce a demand for grant in the Lok Sabha |
| Public Accounts Committee | Examines the CAG reports after spending |
| Estimates Committee | Suggests economy in expenditure |
Answer: (a) 1, 2, 3 and 5 only.
Why each option is right or wrong
- (a) CORRECT. All except the Parliamentary Budget Office are methods of control in India.
- (b) Incorrect. Method 4 does not exist in India; methods 3 and 5 are left out.
- (c) Incorrect. It includes the Parliamentary Budget Office, which India does not have.
- (d) Incorrect. Method 4 is wrong; there is no Parliamentary Budget Office in India.
Key point
Financial control: Annual Financial Statement (Article 112), Appropriation Bill (114), supplementary grants (115), vote-on-account (116), Finance Bill. No Parliamentary Budget Office.
Remember
India has no Parliamentary Budget Office.
Common mistakes
- Assuming India has a Parliamentary Budget Office as some other countries do.
- Forgetting that the vote-on-account is also a form of control by Parliament.
- Confusing the Appropriation Bill (spending) with the Finance Bill (taxes).
Exam tip
Spot the institution that does not exist in India. One wrong item removes three options here.
Sources
- Constitution of India — Articles 112 to 117 and 265
- M. Laxmikanth — Indian Polity, Ch on Parliament (Budget in Parliament)