With reference to the Union Government, consider the following statements:

1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament. 

 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 

 3. All the disbursements made from Public Account also need the authorization from the Parliament of India. 

Which of the statements given above is/are correct? 

 a) 1 and 2 only 

 b) 2 and 3 only 

 c) 2 only 

 d) 1, 2 and 3

Solution: 

• The Budget Division of the Department of Economic Affairs (DEA) (and not the department of revenue) in the finance ministry is the nodal body responsible for producing the Budget.
• The Constitution (under article 114) states that ‘no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law’. 
• Accordingly, an appropriation bill is introduced in the parliament to provide for the appropriation, out of the Consolidated Fund of India.
• It should be noted in this context that the voting of demands for grants is the exclusive privilege of the Lok Sabha, that is, the Rajya Sabha has no power of voting the demands. 
• Provident Fund deposits, savings bank deposits, remittances etc. are credited to the Public Account and this account is operated by the executive action i.e., payment from this account can be made without Parliamentary appropriation. 

Ans: (c)