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