Context: The Lok Sabha passed the Appropriation Bill 2020- 21 by a voice vote.
- The Speaker applied Guillotine, after the discussion on the demand for grants to the Ministry of Tourism was completed.
- Earlier, the House had discussed in detail the demands for grants for Railways, and the Ministry of Social Justice and Empowerment.
- It empowers the government to withdraw budgetary grants from the Consolidated Fund of India in order to ensure working of Government as well as the implementation of programmes and schemes.
- With the passage of the Appropriation Bill, two thirds of the exercise for the approval of the 2020-21 Budget has been completed.
- Post the passage of the Appropriation bill, now the Finance bill will be taken up for passage.
Stages in enactment of Budget
Presentation → General → Scrutiny by → Voting on Demand For → Passing of → Passing of of the Budget Discussion Departmental Grants Appropriation Finance Bill
Annual Financial Statement
- It is mandated under Article 112(Union) and Article 202(States) of the Constitution of India.
- It comprises Income and estimated expenditure of the government during a fiscal year.
- The receipts and expenditures are shown under the three parts, in which Government Accounts are kept. They are named as Consolidated Fund(Article 266), Contingency Fund(Article 267), and Public Account.
- Apart from receipts and expenditures, it also expounds the philosophy of government vis-a-vis welfare schemes, development initiatives.
- It is prepared by the Department of Economic Affairs, Ministry of Finance.
- The Budget speech has two sections namely A and B.
- The first part of the budget speech is concerned with the Macroeconomic aspects of the economy.
- The second part of the Budget speech highlights the government’s revenue generation proposals for the next financial year, mainly taxes.
- As per the mandate of Article 114(3) of the Constitution, no amount can be withdrawn from the Consolidated Fund without approval by the Parliament.
- Once the Demands for Grants are voted by the Lok Sabha, Parliament's approval to the withdrawal from the Consolidated Fund sought through the Appropriation Bill.
- A Finance Bill is a bill that is concerned with the country's finances — it could be about taxes, government expenditures, government borrowings, revenues,
- There are different kinds of Finance Bills that are Money Bill (Article 110), Financial Bills -I and II (Article 117)
- Acts regulated by Finance Bill include Income-Tax Act, The Indian Stamp Act, UTI Act or FRBM Act, Securities Contracts Regulation Act, Forward Contracts Regulation Act, Foreign Exchange Management Act, Prevention of Money Laundering Act, etc.
- Guillotine refers to the exercise by which the Speaker of the House, on the very last day of the period allotted for discussions on the Demands for Grants, puts to vote all outstanding Demands for Grants at a time specified in advance.
- The aim of the exercise is to conclude discussions on financial proposals within the time specified.
- It ensures timely passage of the Finance Bill and the conclusion of debates and discussions on the year’s Budget.
What happens post the guillotine process ?
- All outstanding Demands for Grants must be voted by the House without discussions once the guillotine is invoked.
- Once the pre-specified time for invoking the guillotine is reached, the member who is in possession of the house at that point in time, is requested by the Speaker to resume his or her seat following which Demands for Grants under discussion are immediately put to vote.
- Thereafter, all outstanding Demands are guillotined.
Source: The Hindu
Image Source: India Today