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A compact glossary of key terms and concepts from the lecture on Union Budget, Parliament, and related procedures, to aid quick revision and exam preparation.
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Union Budget
The annual financial plan of the Union government for the coming financial year, detailing expenditure and revenue; comprises appropriation bill and finance bill; prepared by the Budget Division of the Department of Economic Affairs and presented to Parliament by the Finance Minister on behalf of the President.
Annual Financial Statement
Constitutional term for the Union budget; the President’s duty to present the annual financial statement before Parliament, with the Finance Minister presenting it on behalf of the President.
Department of Economic Affairs
A department within the Finance Ministry responsible for budget preparation, forms issued to ministries, and scrutiny of new expenditure proposals before the budget is finalised.
Budget Division
Subdivision within the Department of Economic Affairs that collects ministries’ budget forms, scrutinizes expenditure requests (especially new schemes), and helps prepare the budget.
Appropriation Bill
Money bill that authorizes expenditure of funds; passed first to allow withdrawal from the Consolidated Fund of India.
Finance Bill
Money bill that deals with revenue generation, including tax proposals; passed after the appropriation bill as part of the budget process.
Money Bill
A bill primarily dealing with taxes and revenue; originates in the Lok Sabha; Rajya Sabha cannot amend or reject it; defined and constrained by Article 109 and related provisions.
Article 109
Constitutional provision detailing the procedure for money bills, including their origin in Lok Sabha and limited role for Rajya Sabha.
Article 110
Constitutional provision defining what constitutes a money bill (the contents and criteria that classify a bill as money bill).
Central Board of Direct Taxes (CBDT)
Tax administration body under the central government that advises on tax policy and coordinates direct tax administration.
Central Board of Indirect Taxes (CBIC)
Tax administration body for indirect taxes (like GST) under the central government.
Run Rate
The rate at which an expenditure item is being spent; used to project next year’s budgeting needs and run-rate feasibility.
Standing Items
Ongoing, ongoing-year expenditures that recur; need little scrutiny beyond continuation of existing schemes.
New Items
Expenditure items for new schemes or policies requiring justification and scrutiny by the Economic Affairs Department.
Railway Budget merged
In 2017, the separate Railway Budget was merged into the General Budget, with the Finance Minister presenting the combined Union Budget.
Union Cabinet
The apex executive body that approves the union budget before it is sent to the President and then tabled in Parliament.
President (role in budget)
Under Article 112, the President has a constitutional duty to present the Annual Financial Statement before Parliament on the Finance Minister’s budget, acting on behalf of the President.
Secret Document
The Union Budget is treated as a secret document until it is presented to the Parliament; leaks are avoided until presentation.
Rule of Lapse
Unspent funds from a ministry’s allocation lapse back into the Consolidated Fund of India at year-end unless reappropriated by Parliament.
March Rush
The concentrated spending at the end of the financial year to utilise allocated funds before lapse rules take effect.
Vote on Account
A temporary provision to enable government expenditure for part of the year before the full budget is passed; traditionally covered two months’ expenditure.
Interim Budget
A budget presented when a new government takes office, covering the remaining period of the financial year until the full budget is prepared.
Supplementary Grants
Additional grants passed by Parliament to meet expenditure beyond the approved budget; requires voting and formal approval.
Excess Grants
Grants to cover expenditure beyond what was initially approved; typically requires Public Accounts Committee oversight and approval.
Contingency Fund of India
A fund used by the executive to meet unforeseen expenditures; Parliament must approve supplementary or excess grants to use it.
Public Accounts Committee (PAC)
Parliamentary committee (22 Lok Sabha members and 7 Rajya Sabha members) chaired by an opposition member; examines public accounts and ensures financial propriety, aided by the CAG.
CAG (Comptroller and Auditor General)
Independent constitutional auditor who assists the PAC in examining public expenditure and reporting on financial irregularities.
Expenditure Charged
Certain essential expenditures (e.g., President’s salary, CAG, judiciary) that are charged on the Consolidated Fund and do not require Parliament’s vote.
Voting on Demands for Grants
Lok Sabha’s exclusive power to vote on the expenditure proposed by the demands for grants, after scrutiny by standing committees; money is drawn from the Consolidated Fund only after approval.
No Confidence Motion
A motion moved by opposition in Lok Sabha expressing loss of confidence in the prime minister and Council of Ministers; if passed, the government must resign.
Confidence Motion (Trust Vote)
A motion by the Prime Minister to prove majority support in the Lok Sabha; if passed, the government survives; originates in Lok Sabha.
Censure Motion
Motion expressing extreme disapproval of a minister or the Council of Ministers; may lead to political pressure but not always resignation.
Adjournment Motion
Motion to adjourn the house on a matter of urgent public importance; if passed, can censure the government by interrupting business.
Subsidiary Motion
A motion that depends on a pending bill or main motion; does not have independent existence and may alter procedural decisions (e.g., refer to committee).
Substantive Motion
A motion with independent existence (e.g., no confidence, confidence, adjournment) that can stand on its own and be voted on.
Substitute Motion
A motion that replaces an existing substantive motion with another motion (e.g., replacing censure with no-confidence motion); both may be discussed, but voting occurs on the substitute.
Private Member’s Resolution
Resolution introduced by a member who is not a minister; reflects the House’s opinion but is not binding on the government.
Government Resolution
Resolution introduced by a minister or government; not binding on the government unless backed by law or constitutional provision.
Statutory Resolution
Resolution passed under the provisions of the Constitution, binding on the President (e.g., removal of a judge) though it still requires parliamentary approval.
Joint Sitting
A procedure to resolve deadlock between Lok Sabha and Rajya Sabha on a bill; presided by the Speaker (or rules-based substitute if Speaker is unavailable); passed by simple majority; not applicable to money bills.
Quorum
Minimum number of members required to be present for parliamentary business: traditionally one-tenth of the total membership; may be varied by majority rules.
First Pass the Post (FPTP)
Electoral system in Lok Sabha where the candidate with the most votes wins, not necessarily a majority.
Single Transferable Vote (STV)
Electoral system used for Rajya Sabha elections in which voters rank candidates in order of preference; proportional representation mechanism.
Delimitation
Exercise of redrawing electoral boundaries based on population; used to ensure fair representation after each census.
Speaker and Deputy Speaker
Leaders who preside over Lok Sabha; Speaker chairs proceedings; Deputy Speaker acts in their absence; rules govern succession and vacancies.
Rajya Sabha – Deputy Chairman
Vice-presiding officer in the Rajya Sabha when the Chairman is unavailable; elected by Rajya Sabha members.
Rule 267 (Rajasabha)
Rule in the Rajya Sabha allowing discussion of matters of urgent public importance; not commonly invoked; governs adjournment motions in the Rajya Sabha.
Zero Hour
Extra parliamentary hour after Question Hour during which MPs can raise matters without prior notice; an Indian innovation started in 1962.
Question Hour
First hour of parliamentary proceedings dedicated to questions asked by members to ministers, with oral or written answers (starred vs unstarred vs short notice).
Starred Question
A question marked with an asterisk requiring oral answer, enabling supplementary questions.
Unstarred Question
A question requiring a written answer; no supplementary questions follow.
Short Notice Question
A question for which the minister must respond within a shorter timeframe (e.g., ten days).
Ordinances
President’s power to promulgate ordinances during the recess of Parliament; typically later replaced by a bill in Parliament.