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Union Budget

Constitutional Provisions and Process

Understanding the legal and procedural architecture of the Union Budget is essential for Mains GS2.

Key details

Article 112: The President shall cause to be laid before Parliament a statement of estimated receipts and expenditure — the Annual Financial Statement (Budget).
Article 113: Estimates of expenditure charged on the Consolidated Fund do not need Parliamentary vote; others are submitted as demands for grants.
Article 114: No money shall be appropriated from the Consolidated Fund except under an Appropriation Act. The Appropriation Bill is passed first; the Finance Bill follows to amend taxation.
Article 116: Votes on Account — Parliament can pass spending authority for a part of the year while the full Budget is being debated (typically 2 months).
Article 110: The Finance Bill and Appropriation Bill are Money Bills — they originate only in Lok Sabha; Rajya Sabha cannot amend them (only recommend amendments within 14 days).
CAG (Comptroller and Auditor General): Under Article 148, the CAG audits all government accounts and submits audit reports to the President; these are then laid before Parliament. CAG's audit of fiscal targets under FRBM is a key accountability mechanism.
The Medium-Term Expenditure Framework (MTEF) statement, required under FRBM, sets ceilings for expenditure heads for three years — linking annual budgets to medium-term plans.