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Understanding the Budgetary Powers of Parliament (for UPSC CSE/IAS exam)
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This lesson is the first lesson of the course on Parliamentary Processes & Instruments. The​ types of expenditures can be understood ​through the examples mentioned in the lesson. Appropriation bill, the direct and indirect taxes are few of the concepts mentioned in the lesson.

Bhavin Sangoi
BA Political Science and Psychology, Mumbai University. Teaching Polity, Economics and international relations for 7 years.

U
Unacademy user
welcome pardeep .. keep learning:)
Sir can you please clear my doubt 1. Does parliament have the power to increase expenditure charged on consolidated fund? 2. Does parliament need president recommendation to impose a tax? 3. Can Parliament increase a tax? With or without president recommendations?
Ab Shyara
3 years ago
Supplementary,Additional & Excess grants are regulated by Article 115 of Indian Constitution while Vote of credit & exceptional grant form part of Article 116. A brief description of them is as follows : Supplementary Grant : It is granted when amount authorized by Parliament for a service is found to be insufficient for that year. Like a service was authorized 10 Crore Rupees in the Budget,but this amount is found to be less for proper implementation of that service. Additional Grant : It is granted when there is a need for additional expenditure upon some new service which is not mentioned in the Budget. Excess Grant : It is granted when money has been spent on any service in excess of what was originally sanctioned by Parliament. This Grant is approved by Public Account Committee before being submitted to Lok Sabha for voting at end of that financial year. Vote of Credit : It is like a blank cheque by Lok Sabha to government of India. It is granted when an unexpected demand has arisen upon resources of India whose magnitude or character of service cannot be stated clearly. Like if there is a rescue operation being done somewhere ,the cost to be incurred cannot be described clearly. Exceptional Grant : It is granted for a special purpose and it forms no part of any current service.
Ab Shyara
3 years ago
With answer of your question 2 is Article 265 says that No tax can be levied without authority of the Law. This statement just necessitates bringing of a bill (Finance Bill in case of Budget) in matter related to Taxes. So, how the taxes are imposed or increased??...SIMPLE- by the prior recommendation of the president!
Ab Shyara
3 years ago
Parliament can only decrease or abolish a tax, but not increase it. The reason being that taxation is the job of executive, and its job of the people's representatives , i.e. parliament to protect them from undue, harsh taxes. So taxes have to be approved by the legislature ("No taxation without representation"), and its not the job of the Parliament to levy taxes. As per your question, taxes proposals are brought on by the executive- the council of ministers. The Parliament doesn't levy any furthur taxes. It merely approves or disapproves them. The Parliament doesn't propose the budget, it merely approves or rejects it. Hope that answers your question.
Arun K Pavithran
3 years ago
thanks bro.clarified with 2 & 3. but for the first question it is expenditure "charged on". I think it has nothing to do with additional grants excess grants and all. Possibly it would be solely by the executive I guess.
Bhavin Sangoi
3 years ago
Parliament can't increase the charged or voted, both the types of expenditure. Question 2 and 3 are answered correctly by About sharaya. Thanks
Ab Shyara
3 years ago
Thanks Bhavin Sir for your valuable comment. Pls introduce more such lessons, I eagerly waiting for them. Your way of teaching is fabulous. Although your lessons are awesome but pls introduce them in comparison form of table. I hope you won't mind my suggestion. :-)
J
sir I have a doubt....why appropriation bill includes charged expenditure.?if this bill is for only granted money.
TP
For financial bill article 117(3) recommendation of president is required or not??
TP
For financial bill article 117(3) recommendation of president is required or not??
sir ,i was wonderinf if u could clarify this doubt of mine, pls dont mind answering it I want to understand the art112(1), little confusion about it. It says "The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year". What is the meaning of "Cause to be Laid" here .Is it saying that president will be responsible and to make sure that budget is presented. am i able to understand it correct. Kindly Answer
Bhavin Sangoi
3 years ago
Yes, it is the part of duty of President that he makes sure that budget is presented in both the Houses of Parliament every year
Cse ranker
3 years ago
HOW IS RESOLUTION DIFFERENT FROM AN ACT OR BILL?
  1. Course: Gain an understanding of Parliamentary Processes and Instruments Lesson: Budgetary Powers of the Parliament Presented by Bhavin Sangoi


  2. About me . B.A in Political Science & Psychology Appeared in UPSC CSE Mains Teaching Indian Polity, International Relations, economics & mental Ability since 5 years Experience of teaching for various competitive exams such as NTSE, CET & UPSC . Follow me on: https://Unacademy.in/user/BhavinSangoi


  3. Key Points Article 112 (1), refers Budget as 'Annual financial statement'. Budget is the estimate of income and expenditure of government. . According to article 112 (2), Government expenditure is registered as (a) Charged expenditure and (b) other expenditure.


  4. ifference between expenditures According to article 113 (1), Charged expenditure can't be voted, but can be discussed . According to article 113 (2), Other expenditure shall be submitted in the form of demands for grants to the House of People, which can either accept or reject or reduce the amount of demand


  5. Charged expenditure . Aceording to artile 112 (0) Charged expenditure include: a) Emoluments, allowances of the President and other expenditure related to his office. Salary and allowances of the Chairman and the Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha. b)


  6. Continued c) Debt charges including interest, sinking fund charges, redemption charges and any other expenditure related to loans. d) Salary, allowance and pensions of Judges of Supreme Court and pensions of the Judges of High Court.


  7. Continued e) Salary, allowances and pension of C & AG f) Any sum required to satisfy any judgment, decree or award of any court or arbitrary tribunal g) Any other expenditure so declared by constitution or Parliament of India


  8. Demands for Grants According to article 113 (3), No demand for grant shall be made except on the recommendation of the President. According to article 114 (1), Once the demands for grant is passed by House of People, a bill is introduced to appropriate money from the Consolidated fund of India.


  9. Appropriation bill Includes charged expenditure and the grants made by the House of People. Can't be amended to change the demand for grants or any other expenditure


  10. Continued . Direct and indirect taxes form major chunk of government's income. According to article 265, No tax shall be levied or Direct and indirect taxes form major chunk of government's collected except by the authority of law . Parliament can impose taxes on the subjects mentioned in Union list 246(1), Concurrent list 246 (2) and Residuary matters 248(2)