Economics • Indian EconomyMedium
What is the primary constitutional requirement regarding the 'Annual Financial Statement' presented in Parliament under Article 112?
A. It must be approved by the NITI Aayog before legislative introduction
B. It shows the estimated receipts and expenditure of the Government of India for that financial year✓ Correct Answer
C. It requires a mandatory two-thirds majority in both houses for enactment
D. It restricts central government borrowing to a maximum of three percent of national GDP
💡 Solution & Explanation
Article 112 of the Indian Constitution mandates the presentation of the Annual Financial Statement, detailing estimated receipts and expenditures of the central government for the coming financial year. NITI Aayog functions as a policy think tank rather than a budgetary approval body. Statutory borrowing limits are governed separately under the Fiscal Responsibility and Budget Management Act rather than Article 112 itself. Appropriation bills subsequently authorize withdrawals from the Consolidated Fund of India.
More Economics Indian Economy questions
- Examine the role and constitutional mandate of the Finance Commission of India. Which of the following…
- Analyze the structural components of India's Balance of Payments accounts. Which of the following…
- What institutional body replaced the Planning Commission of India to foster cooperative federalism through…
- What institutional role does the 'National Statistical Office' (NSO) play within the Ministry of Statistics…
- How do hydroelectric power projects in Sikkim contribute to the state's fiscal framework and revenue…