5 Financial Powers of the Union Parliament

Question: In the context of the Union Parliament, describe the Financial Powers of the Union Parliament.


Financial Powers of the Union Parliament

The Budget: The Parliament passes the annual Union Budget containing the estimates of receipts and expenditure of the government for a financial year. The Budget is presented in two parts, namely, the Railway Budget and the General Budget.

Supplementary Grants: If the amount authorised for the current financial year is not sufficient, the government may make a fresh demand known as the ‘Supplementary Grant’. It is also passed in the same manner as the Annual Budget is passed.

Votes on Account: If the Union Budget is not passed before the beginning of the new financial years, i.e., April 1, then here would be no money for the government to spend. There is, therefore, a device known as ‘Vote on Account’ which authorises the government to draw funds from the Consolidated Fund of India until the Budget is passed by the Parliament.

Fixation of Salaries: The salaries and allowances of MPs and Ministers are determined by the Parliament.

Permission for Taxes: No tax can be imposed or money spent by the Government without the approval of the Parliament.


The Union Legislature

The Union Parliament consists of the President and two houses—The House of People commonly known as the Lok Sabha and the Council of States known as the Rajya Sabha. The Parliament is a body of people’s representatives who have the supreme power and authority of governance in a democratic country. Read more

The High Courts and Subordinate Courts

The Constitution of India has provided for a High Court for each state. However, there may be one High Court for two states or union territories. This depends on the area and the population of the state or a union territory. There are 21 High Courts in India. Delhi is the only union territory which has a High Court of its own. Read more

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