Budget in Parliament

Budget in Parliament - Stages

1.
2.
3.
4.
5.
6.

Presentation of budget
General Discussion
Scrutiny by Departmental Committees
Voting on Demands for Grants
Passing of Appropriation Bill
Passing of Finance Bill

1. Presentation of budget
An elaborate procedure has been prescribed
in the rules of business and also by convention
for presentation of budget in Parliament and
its approval
The rules of procedure require that the
budget is presented to Lok Sabha on such day
as the President directs (The budget is usually
presented President directs. (The budget is
usually presented on the last day of February).

2. General Discussion
Discussion on the Budget: Immediately after
presentation, some period is specifically
allotted for a general discussion on the
budget.

Vote on Account
Vote on Account: Pending voting of the final demands for
grants which take a longer time and may extend beyond
the commencement of the new financial year the
Constitution empowers Lok Sabha to grant Vote on
Account so that necessary expenditure on Government ,
etc. can be incurred.
By convention, therefore, Vote on Account is treated as
formality and passed by Lok Sabha without any discussion
at this stage.
The Vote on Account normally covers one months
expenditure requirements (or such longer period as may be
considered necessary by the Finance Ministry) or till the
Appropriation Bill is passed.

3. Scrutiny by Departmental
Committees
The Standing Committees of Parliament
consider the for grants of concerned
Ministries /Departments and make a report to
the Parliament to a more satisfactory scrutiny
of demands for grants.

4. Voting on Demands for Grants

The Guillotine: In the schedule for budget
discussion made by the Business Advisory
Committee, provision for Guillotine is
included by which if all the demands have not
been considered by Parliament within the
time frame prescribed, the speaker applies the
Guillotine and all outstanding Demands are
put to the Vote of the House without further
discussion.

5. Passing of Appropriation Bill

The Appropriation Bill: After passing the
Demands for Grants, the appropriation Bill is
introduced
This is to authorize the Government to draw
money from the Consolidated Fund.
After the Bill is passed, it becomes the
Appropriation Act.

6. Passing of Finance Bill

The Finance Bill: After voting on the
Appropriation Bill, the Finance Bill is taken up
for consideration.
The proposals of the Government for levy
The proposals of the Government for levy of
new taxes, modification of existing taxes or
continuation of the existing tax structure or
continuation of the existing tax structure
beyond the period approved by Parliament
are submitted to the Parliament.