UPSC Prelims 2024 Q85: Indian Polity – Public Finance & Finance Commission
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (c) Both 1 and 2
Explanation
Union Budget - Constitutional Provisions
Statement-by-Statement Breakdown:
| Statement | Claim | Verdict | Analysis |
|---|---|---|---|
| 1 | The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both Houses | TRUE | The Finance Minister presents the Annual Financial Statement (Union Budget) before Parliament. In constitutional parlance, the FM acts as a member of the Council of Ministers headed by the PM - so presenting it 'on behalf of the Prime Minister' reflects the collective responsibility framework under which the Cabinet operates. |
| 2 | At the Union level, no demand for a grant can be made except on the recommendation of the President | TRUE | Article 113(3) clearly states: 'No demand for a grant shall be made except on the recommendation of the President.' This ensures the executive (President/Government) initiates financial demands, not individual MPs. |
Key Budget-related Articles:
| Article | Provision |
|---|---|
| 112 | Annual Financial Statement (AFS) - President causes it to be laid before Parliament |
| 113 | Demands for Grants - no demand without President's recommendation |
| 114 | Appropriation Bills - money from Consolidated Fund |
| 116 | Vote on Account - interim budget mechanism |
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is also correct - Article 113(3) explicitly requires the President's recommendation for any demand for a grant at the Union level.
- (b) Incorrect. Statement 1 is also correct - the Finance Minister presents the budget in Parliament, acting within the collective responsibility of the Cabinet under the PM.
- (c) CORRECT. Both statements are correct. Statement 1 (FM presents AFS on behalf of PM/government) and Statement 2 (no demand for grant without Presidential recommendation per Article 113) are both accurate.
- (d) Incorrect. Both statements are correct. Article 113(3) explicitly mandates Presidential recommendation for demands for grants.
Key point
Finance Minister presents Annual Financial Statement to Parliament (on behalf of PM/Cabinet). Article 113(3): no demand for a grant at Union level without Presidential recommendation. Both statements are correct.
Remember
The Finance Minister presents the Annual Financial Statement on behalf of the PM/Cabinet. Under Article 113(3), no demand for a grant can be made at the Union level except on the recommendation of the President.
Common mistakes
- Thinking only the President presents the budget directly - the President causes it to be laid before Parliament (Article 112), but the Finance Minister presents it as a member of the Cabinet.
- Not knowing Article 113(3) - it explicitly states no demand for a grant can be made without the President's recommendation, ensuring executive control of financial demands.
- Confusing the Annual Financial Statement (AFS) with the Appropriation Bill - AFS shows estimated receipts and expenditure; Appropriation Bill authorizes actual withdrawals from Consolidated Fund.
Exam tip
Budget key articles: 112 = AFS (President causes it to be laid). 113 = Demands for Grants (President's recommendation required). 114 = Appropriation Bill. 116 = Vote on Account. Remember: President's recommendation is needed for ALL demands for grants at Union level.
Sources
- Constitution of India - Articles 112-116
- NCERT Class 11 Political Science - Chapter 6: The Executive