Which Article of the Constitution of India pertains to the Annual Financial Statement, also called Budget?

The correct answer is Article 112.

Key Points

• Article 112 of the Constitution of India deals with the Annual Financial Statement, commonly known as the Budget.
• The Budget is a detailed statement of the estimated receipts and expenditures of the Government of India for a particular financial year.
• It is presented by the Finance Minister to the Parliament on the last working day of February each year.
• The Budget is divided into two parts: the Revenue Budget and the Capital Budget.
• The Revenue Budget includes the government's revenue receipts and expenditure, while the Capital Budget includes the government's capital receipts and payments.

Additional Information

• Finance Bill
  • The Finance Bill is presented along with the Budget, detailing the legal amendments required for the government's proposed tax changes.
  • It has to be passed by the Parliament within 75 days of its introduction.
• Appropriation Bill
  • The Appropriation Bill allows the government to withdraw funds from the Consolidated Fund of India to meet its expenditure.
  • It is passed after the Budget is approved by the Parliament.
• Consolidated Fund of India
  • It is the chief account of the Government of India, into which all receipts are deposited and all expenses are withdrawn.
  • No money can be withdrawn from this fund without the authorization of the Parliament.
• Revenue and Capital Receipts
  • Revenue receipts are the regular income of the government from taxes and non-tax revenues.
  • Capital receipts are those receipts that create liabilities or reduce financial assets, such as loans raised by the government.