With reference to Union Budget, consider the following statements:

The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament.
At the Union level, no demand for a grant can be made except on the recommendation of the President of India.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Correct Answer: (b) 2 only

Explanation:

Statement 1: The Union Finance Minister presents the Annual Financial Statement before both Houses of Parliament, but not on behalf of the Prime Minister. This is a key duty of the Finance Minister, who heads the Ministry of Finance and is responsible for the fiscal policy of the government .
Statement 2: At the Union level, no demand for a grant can be made except on the recommendation of the President of India. This is mandated by Article 113 of the Indian Constitution, which states that no demand for grants can be presented in the Lok Sabha without the President’s prior approval .

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Union Budget: The Union Budget, also known as the Annual Financial Statement, is a comprehensive statement of the government’s estimated receipts and expenditures for a financial year. It is presented by the Finance Minister in Parliament.
Article 112: This article of the Indian Constitution mandates that the President shall cause to be laid before both Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year.
Presentation Date: Since 2017, the Union Budget is presented on the 1st of February each year, earlier it was presented on the last working day of February.
Budget Speech: The Finance Minister delivers the budget speech in the Lok Sabha (Lower House) first. The budget can be presented in two or more parts, and no discussion takes place on the day of presentation.
Demand for Grants: These are proposals seeking withdrawal of money from the Consolidated Fund of India, presented in the Lok Sabha. Each ministry prepares its demand for grants, which includes both charged and voted expenditures.
Approval Process: The Lok Sabha has the power to approve or reject the demands for grants. No demand for a grant can be made without the President’s recommendation, ensuring a check on the financial proposals .
Budget Cycle: The budget preparation begins in the third quarter of the financial year and involves multiple stages, including estimates of expenditures and revenues, narrowing of deficit, and presentation and approval of the budget .