Economics • Indian EconomyEasy
What is the primary purpose of the 'Union Budget' presented annually in the Parliament of India under Article 112 of the Constitution?
A. To outline the estimated receipts and expenditures of the government for the upcoming financial year✓ Correct Answer
B. To formulate monetary policy guidelines and fix commercial bank lending rates
C. To determine the minimum wages for industrial workers in central public sector undertakings
D. To audit the financial accounts of state government cooperative societies
💡 Solution & Explanation
Article 112 of the Indian Constitution mandates the presentation of the Annual Financial Statement, commonly known as the Union Budget, detailing the estimated receipts and expenditures of the central government for the financial year. It distinguishes between revenue account and capital account transactions to provide a comprehensive fiscal overview. Monetary policy formulation remains the domain of the Reserve Bank of India rather than the budget. Parliamentary approval of the budget is mandatory before the government can withdraw funds from the Consolidated Fund of India.
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