Page 40 - Parliament of India

by State Legislatures as passed by Parliament in certain cases, a Bill for amend­
ment of the Constitution follows practically the same legislative process as any
ordinary piece of legislation.
THE BUDGET
The Annual Financial Statement laid before both the Houses of Parliament
embodies the estimated receipts and expenditure of the Government of India in
respect of the ensuing financial year. In India the "financial year" commences on
the first of April.
The estimates of expenditure are split up into what are called "Demands for
Grants". These Demands are arranged Ministry-wise and they generally cover
the requirements of each administrative service. Under each Demand the
estimates are sub-divided according to the categories of expenditure included in
the Demand.

In India, the Budget is presented to Parliament in two parts : the General
Budget and the Railway Budget. The General Budget is presented to Lok Sabha
by the Finance Minister usually at 5 P.M. on the last working day in February,
i.e. about a month before the commencement of the Budget Year. Simultaneously,
a copy of the Budget is laid on the Table of Rajya Sabha. The Railway Budget
is presented by the Railway Minister about a week, or ten days earlier.
The Budget is discussed in two stages in Lok Sabha. First, there is the general
discussion when only the broad outlines of the Budget and the principles and
policies underlying it are discussed. Discussion and voting on the Demands for
Grants of each Ministry is taken thereafter.
The Lok Sabha has the power to assent to, or refuse to give assent to, any
Demand or even to reduce the amount of any grant sought by Government. In
Rajya Sabha there is only a general discussion on the Budget. It does not vote
on the Demands for Grants.

The Finance Bill : The Finance Bill, which seeks to give effect to the
Government's taxation proposals, is introduced in Lok Sabha immediately after
the presentation of the Budget. The provisions in the Bill relating to collection
of fresh taxes or variations in the existing taxes come into effect immediately with
the introduction of the Bill by virtue of a declaration under the Provisional
Collection of Taxes Act.
The Appropriation BUI : After the voting on the Demands for Grants has been
completed, the Appropriation Bill is introduced. The Appropriation Bill is
intended to authorize the Government to draw moneys from the "Consolidated
Fund of India" to the extent shown in the budget passed by Parliament.

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