UPSC Prelims 2012 · Question 35 of 98
UPSC Prelims 2012 question on Parliamentary Control Public Finance
- ExamUPSC CSE
- Year2012
- PaperGeneral Studies Paper I
- SubjectPolity
- TopicFunds of Government of India
- DifficultyMedium
- TypeStatement
Which of the following are the methods of Parliamentary control over public finance in India?
1. Placing Annual Financial Statement before Parliament.
2. Withdrawal of money from Consolidated Fund only after passing Appropriation Bill.
3. Provision of supplementary grants and vote-on-account.
4. A periodic or at least a mid-year review of programme macroeconomic forecasts and expenditure by a Parliamentary Budget Office.
5. Introducing Finance Bill in Parliament.
Select the correct answer using the codes given below.
Show answer
Answer: A. 1, 2, 3 and 5 only
Verdict
Correct Answer: 1, 2, 3 and 5 only
Statements 1, 2, 3 and 5 are correct because they are constitutional and parliamentary tools of financial control, while Statement 4 is incorrect as India has no Parliamentary Budget Office.
Analysis
Parliament controls public finance through budget approval, legal authorization of expenditure and taxation, and financial scrutiny. However, India does not have a Parliamentary Budget Office for independent mid-year macroeconomic review.
Statement by statement
1. Placing Annual Financial Statement before Parliament — Correct
Under Article 112, the Annual Financial Statement, or Union Budget, is laid before Parliament.
This ensures that government receipts and expenditure are placed under legislative scrutiny.
2. Withdrawal of money from Consolidated Fund only after passing Appropriation Bill — Correct
Under Article 114, money cannot be withdrawn from the Consolidated Fund of India without parliamentary authorization.
This is done through the Appropriation Act.
3. Provision of supplementary grants and vote-on-account — Correct
Supplementary grants are provided under Article 115 when the authorized amount is insufficient.
Vote-on-account under Article 116 allows temporary withdrawal of funds before the full budget is passed.
4. Review of macroeconomic forecasts by a Parliamentary Budget Office — Incorrect
India does not have a Parliamentary Budget Office.
Macroeconomic reviews are generally carried out by the Ministry of Finance, not by an independent parliamentary budget office.
5. Introducing Finance Bill in Parliament — Correct
The Finance Bill contains taxation proposals of the government.
Parliament’s approval is necessary for levying and collecting taxes.
Extra UPSC info
* Article 112 deals with the Annual Financial Statement.
* Article 114 deals with Appropriation Bills.
* Article 115 deals with supplementary, additional or excess grants.
* Article 116 deals with vote-on-account, vote of credit and exceptional grants.
* Public Accounts Committee examines CAG reports and checks financial irregularities.
* Estimates Committee suggests economies and improvements in public expenditure.