Article 112 deals with :
Union Budget
Understanding Article 112 of the Indian Constitution
The question asks about the subject matter of Article 112 of the Indian Constitution. This article is a key part of the constitutional framework that governs the financial procedures of the government.
Article 112 specifically requires the President of India to cause to be laid before both Houses of Parliament an annual financial statement. This statement details the estimated receipts and expenditure of the Government of India for that financial year.
This annual financial statement is commonly known as the Union Budget.
Let's look at the options provided:
- Consolidated Fund of India: This is dealt with in Article 266(1) of the Constitution. It is the main account for government receipts and expenditures.
- Public Account: This is also dealt with in Article 266(2) of the Constitution. It deals with money received by the government but not belonging to it (like provident funds, small savings).
- Union Budget: As discussed, Article 112 mandates the presentation of the Annual Financial Statement, which is the Union Budget, before Parliament.
- Contingency Fund: This is established under Article 267 of the Constitution to meet unforeseen expenditure.
Based on the constitutional provisions, Article 112 is directly associated with the Annual Financial Statement, which is the Union Budget.
| Constitutional Article | Subject Matter |
|---|---|
| Article 112 | Annual Financial Statement (Union Budget) |
| Article 266(1) | Consolidated Fund of India |
| Article 266(2) | Public Account of India |
| Article 267 | Contingency Fund of India |
Therefore, Article 112 deals with the Union Budget.
Revision Table: Indian Constitution Financial Provisions
| Provision | Description | Relevant Article |
|---|---|---|
| Union Budget (Annual Financial Statement) | Detailed estimate of government's receipts and expenditure for a financial year, presented to Parliament. | Article 112 |
| Consolidated Fund of India | Principal account where all government revenue, loans raised, and receipts from recoveries are credited, and all expenditure is debited. | Article 266(1) |
| Public Account of India | Account for funds other than those in the Consolidated Fund, where the government acts as a banker (e.g., provident funds, small savings). | Article 266(2) |
| Contingency Fund of India | An imprest placed at the disposal of the President to meet unforeseen expenditure pending parliamentary approval. | Article 267 |
Additional Information on Indian Government Funds and Budget
Understanding the different funds and the budget process is crucial for comprehending government finance.
- Annual Financial Statement: As per Article 112, this is the formal document presented in Parliament every year. It provides a complete picture of the government's financial position for the upcoming fiscal year. It includes revenue estimates, expenditure estimates, details of receipts from various sources, and allocation of funds to different sectors.
- Consolidated Fund: This is the most important of the three funds. Money can only be withdrawn from this fund with the authorization of Parliament through an Appropriation Act. This ensures parliamentary control over government spending.
- Public Account: Transactions here do not require parliamentary authorization for withdrawal because the government is merely holding this money in trust for others. Payments from this account are not subject to voting by Parliament.
- Contingency Fund: This fund is used for emergency situations. The amount in the Contingency Fund is relatively small compared to the Consolidated Fund. Any expenditure from this fund must eventually be recouped from the Consolidated Fund after parliamentary approval.
Article 112 sets the stage for the entire budgetary process in India, making the presentation of the Union Budget a constitutional requirement.
Union Budget
✅ Correct Answer: Union Budget
Concise Explanation:
Article 112 of the Indian Constitution deals with the Annual Financial Statement, commonly known as the Union Budget.
It presents the estimated receipts and expenditures of the Central Government for a financial year.
Union Budget
The correct answer is:
✅ Union Budget
Explanation:
Article 112 of the Indian Constitution mandates the Annual Financial Statement, popularly known as the Union Budget. It requires the government to present an annual statement of:
Estimated receipts and expenditures (Consolidated Fund, Contingency Fund, Public Account).
Revenue and capital budgets.
Why Other Options Are Incorrect:
Consolidated Fund of India → Covered under Article 266(1).
Public Account → Governed by Article 266(2).
Contingency Fund → Addressed in Article 267.
Key Point:
While the Union Budget (Article 112) includes details of these funds, it specifically refers to the annual financial statement as a whole.
Correct Answer: Union Budget ✅
Important Questions from Economics and Central Problems of Economy
If the value of Investment Multiplier is 5 and the increased income is ₹ 800 crore in an economy, then find the value of change in the investment in the economy.
Which of the following statements are true?
(A) Quantitative tools control the extent of money supply by changing the CRR.
(B) There are two types of open market operations – outright and upright.
(C) A fall in the bank rate can decrease the money supply.
(D) Selling of a bond by RBI leads to reduction in quantity of reserves.
(E) The RBI can influence money supply by changing the rate at which it gives loan to the commercial banks.
Choose the correct answer from the options given below:
Paradox of Thrift means :
Match List-I with List-II:
List-I List-II (A) Bank Rate (I) Securities are pledged in order to repurchase (B) Marginal Standing Facility (II) Minimum rate at which funds are provided for long term (C) Repo Rate (III) Also known as Penal Interest Rate (D) Reverse Repo Rate (IV) Central Bank borrows funds from commercial banks Choose the correct answer from the options given below:
Which of the following is not a function of Central Bank ?
