Q. With reference to the Annual Financial Statement under Article 112, which of the following statements is/are correct?
Select the correct answer using the code given below:
Q. With reference to the Annual Financial Statement under Article 112, which of the following statements is/are correct?
Select the correct answer using the code given below:
The correct option is B 2 only
Explanation:
Statement 1 is incorrect: According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year. Proposals made in the Budget, if passed by Parliament, take effect from April 1 of every year, which is when the financial year starts. They are valid till March 31 of the next year. It is not mandatory for the government to present the Economic Survey and its recommendations are not binding on the government either.
Statement 2 is correct: If the passing of the Annual Financial Statement fails, the government must move a confidence motion in Parliament. Failure to pass a money bill signifies a lack of majority in the Lok Sabha.
Explanation:
Statement 1 is incorrect: According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year. Proposals made in the Budget, if passed by Parliament, take effect from April 1 of every year, which is when the financial year starts. They are valid till March 31 of the next year. It is not mandatory for the government to present the Economic Survey and its recommendations are not binding on the government either.
Statement 2 is correct: If the passing of the Annual Financial Statement fails, the government must move a confidence motion in Parliament. Failure to pass a money bill signifies a lack of majority in the Lok Sabha.
