Which Article in the Constitution of India mentions that there is a constitutional requirement in India to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year, which runs from 1 April to 31 March?

The correct answer is Article 112.

Key Points

• Article 112 of the Constitution of India mandates the presentation of a statement of estimated receipts and expenditures of the government, known as the Annual Financial Statement.
• This statement is commonly referred to as the Union Budget.
• The financial year in India runs from 1 April to 31 March of the following year.
• The Union Budget is presented by the Finance Minister of India in the Parliament.
• It includes detailed estimates of revenue and expenditure for the upcoming financial year.

Additional Information

• Union Budget:
  • The Union Budget is a comprehensive report on the Government of India's finances, including revenue from all sources and expenditure on all activities.
  • It is divided into two parts: Revenue Budget and Capital Budget.
  • The Revenue Budget includes the government's revenue receipts and expenditure met from these revenues.
  • The Capital Budget includes capital receipts and payments, such as loans, borrowings, and investments.
• Finance Bill:
  • A Finance Bill is a Money Bill as defined in Article 110 of the Constitution.
  • It is introduced each year to give effect to the financial proposals of the Government of India for the next financial year.
  • The Finance Bill contains provisions regarding taxation and other financial matters.
• Appropriation Bill:
  • Once the demands for grants and expenditure are approved by the Parliament, an Appropriation Bill is introduced.
  • This Bill authorizes the government to withdraw funds from the Consolidated Fund of India for meeting the expenditure during the financial year.
  • The Bill must be passed by both the Lok Sabha and the Rajya Sabha before it becomes an Act.
• Financial Year:
  • The financial year in India starts on April 1st and ends on March 31st of the following year.
  • This period is used for calculating annual financial statements, budgets, and tax assessments.
  • Companies, organizations, and the government follow this period for financial reporting.