Prelims 2012 · Polity and Constitution · Question 35
Which of the following are the methods of Parliamentary control over public finance in India?<br/>1. Placing Annual Financial Statement before the Parliament.<br/>2. Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill.<br/>3. Provisions of supplementary grants and vote-on-account.<br/>4. A periodic or at least a mid-year review of programme macroeconomic forecasts and expenditure by a Parliamentary Budget Office.<br/>5. Introducing Finance Bill in the Parliament.<br/><br/>Select the correct answer using the codes given below:
Answer
1, 2, 3 and 5 only
1. Annual Financial Statement before Parliament — Correct. Article 112 requires the Union Budget/Annual Financial Statement to be laid before Parliament; this is a basic instrument of parliamentary financial control.
2. Withdrawal from Consolidated Fund only after Appropriation Bill — Correct. Under Article 114, no money can be withdrawn from the Consolidated Fund of India except under appropriation made by law passed by Parliament.
3. Supplementary grants and vote-on-account — Correct. These are parliamentary devices to authorize additional or interim expenditure, hence part of financial control.
4. Mid-year review by a Parliamentary Budget Office — Incorrect. India does not have a statutory Parliamentary Budget Office exercising such control; this is a proposed/recommended reform, not an established method.
5. Introducing Finance Bill in Parliament — Correct. The Finance Bill gives effect to taxation proposals and must be passed by Parliament, making it part of parliamentary control over public finance.
Therefore, statements 1, 2, 3 and 5 are correct.