Explain the constitutional provisions governing the Union Budget in India. How does Article 112 ensure parliamentary control over public finances?

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PocketIAS · Accepted Answer

Introduction The Union Budget reflects the government’s annual financial statement and is governed by constitutional provisions that ensure legislative control over taxation and expenditure.

Constitutional Provisions Governing the Union Budget

Article 112: Provides for the Annual Financial Statement (AFS), laying out estimated receipts and expenditure of the Government of India
Article 113: Deals with Demands for Grants, which are voted by the Lok Sabha
Article 114: Provides for the Appropriation Bill, authorising withdrawal from the Consolidated Fund of India
Article 110: Defines Money Bills, including taxation and expenditure matters
Article 117: Requires President’s recommendation for introduction of financial bills
Article 266: Establishes the Consolidated Fund, Contingency Fund, and Public Account
Article 265: Ensures that no tax shall be levied or collected except by authority of law

How Article 112 Ensures Parliamentary Control

Mandates annual presentation of the financial statement before Parliament, ensuring transparency
Classifies expenditure into charged and voted, allowing legislative scrutiny of most expenditures
Forms the basis for discussion, debate, and voting in Parliament
Enables detailed examination by committees like Departmentally Related Standing Committees
Links with subsequent steps—Demands for Grants and Appropriation Act—ensuring no expenditure without parliamentary approval
Facilitates accountability of the executive to the legislature for financial management

Conclusion Through Article 112 and related provisions, the Constitution institutionalises the principle of “no taxation or expenditure without representation”, ensuring effective parliamentary oversight over public finances.

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