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Question

When the annual Union Budget is not passed by the Lok Sabha?

A
the Budget is modified and presented again
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B
the Budget is referred to the Rajya Sabha for suggestions
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C
the Union Finance Minister is asked to resign
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D
the Prime Minister submits the resignation of Council of Ministers
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Solution

The correct option is D the Prime Minister submits the resignation of Council of Ministers
Option D is the correct answer. When the annual Union Budget is not passed by the Lok Sabha, the Prime Minister submits the resignation of Council of Ministers. If the budget is not passed under any condition in parliament then it can be understood that the ruling party is in minority. Technically it means the government has lost the confidence vote in the Lok Sabha and it has to resign. In Indian history, this has not happened so far.

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