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This is the third part in our series on Budget
HOW BUDGET IS PASSED IN PARLIAMENT
The budget goes through six stages in the parliament before it gets passed. These stages are as follows-
1. Presentation of budget
2. General discussion
3. Scrutiny by departmental committees
4. Voting on demands of grants
5. Passing of the appropriation bill
6. Passing of finance bill
Presentation of Budget
Till 2016, there were two separate budgets i.e. Railway Budget and the General Budget in the Lok Sabha. This separate railway budget was first introduced in 1924 based on the recommendations of the Acworth Committee. From 2017, Railway budget was merged with the general budget
Earlier, the Economic Survey also used to be presented to the Parliament along with the budget. Now, it is presented one day before the presentation of the budget.
2. General Discussion
In the budget session, general discussion begins a few days after its presentation which takes place in both the houses and usually lasts for three to four days. The Loksabha can discuss the budget as a whole or any question of principles involved but no cut motion can be moved at this stage nor can the budget be submitted to the vote of the House. The discussion only examines the general scheme and structure of the budget. The finance minister has a general right of reply at the end of the discussion.
3. Scrutiny by Departmental Committees
4. Voting on Demands of Grants
The expenditure proposed to be made from the Consolidated Fund of India is presented in the form of demand for grants of the various ministries (called as department ). Because as we know the expenditure charged upon the Consolidated Fund of India cannot be voted upon by the Parliament .
In the light of the reports of the departmental standing committees, the Lok Sabha takes up voting of demands for grants. The demands are presented ministry wise. A demand becomes a grant after it has been duly voted.
Demand of grant for Department (Ministries)
Two Points should be noted in this context-
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What is a Cut Motion
What is a Motion
The term `motion' means any formal proposal made to the House by a Member for the purpose of eliciting a decision of the House. The motion is written in such a way that if it is passed then it is seen as the will of the house. During discussion on the demand for grants the member of the Lok Sabha can move cut motion against the demand for grants.
Cut motions are of three types:
(i) Policy Cut Motion: It represents the disapproval of the policy underlying the demand. The motion states that the amount of the demand be reduced to Re. 1 which means that the mover disapproves of the policy underlying the demand. The member can also advocate for an alternative policy. The motion expresses the disapproval of the policy followed by the concerned ministry.
(ii) Economy Cut Motion: It represents the economy that can be affected in the proposed expenditure. It states that the amount of the demand will be reduced by a particular amount. The amount suggested for reduction may be either a lump-sum reduction in the demand or omission or reduction of an item in the demand.
(iii) Token Cut Motion: It ventilate a specific grievance within the sphere of responsibility of the government. It states that the amount of the demand will be reduced by Rs. 100.
A cut motion to be admissible should satisfy the following conditions:
i. It should relate to one demand only.
ii.. It should be confined to one specific matter which should be stated in precise terms.
iii. It should not make suggestions for the amendment or repeal of existing laws.
iv. . It should not relate to expenditure ‘Charged’ on the Consolidated Fund of India.
If the cut motion is passed then it means that the government has lost majority in the house.
What is a guillotine
Lok Sabha allots time for discussion for each demand for grants and the house discusses each demand for grants But sometimes due to various reasons like disruption in the house etc there is a time constraint. In such cases all the pending demands for grants are bunched together and put to vote in the house. This is called a guillotine.
Appropriation Bill
After the Lok Sabha has passed the demand for grants of the departments then the Finance minister moves Appropriation Bill under article 114 of the constitution.
The Appropriation bill includes the Expenditure proposed to be made from the Consolidated Fund of India in the form of demand for grants and the expenditure charged upon the Consolidated Fund of India.
Can the Appropriation bill be amended
The parliament has no power to change the amount mentioned in the demand for grants.
Passage of the Appropriation Bill
The Appropriation bill is passed by the Lok Sabha through a simple majority . It is certified as a Money bill by the Speaker of Lok Sabha and sent to the Rajya Sabha.
The Rajya Sabha has no power and it can either reject the bill or pass it or delay it for a maximum period of 14 days.
The Appropriation bill is then sent to the President who has to sign the bill and it becomes an act. Now the various departments of the government can withdraw money from the Consolidated Fund of India.
Other Grants In addition to the budget that contains the ordinary estimates of income and expenditure for one financial year various other grants are made by the Parliament under extraordinary or special circumstances.Supplementary, additional or excess grants and Votes on account, votes of credit and exceptional grants are mentioned in the Constitution of India 1949. Article 115: Supplementary, additional or excess grants. Article 116: Votes on account, votes of credit and exceptional grants.
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Passing of the Finance Bill
What is the Finance Bill
The taxation proposal of the government is introduced in the form of a Finance bill.
The procedure in respect of the finance bill is the same as in the case of other money bills.
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