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Q6. (How Does The Parliament Control The Financial System in India?)
Q6. (How Does The Parliament Control The Financial System in India?)
The Lok Sabha has to section the Budget in advanced of every year. The money to be charged
upon the consolidated fund is also put to discussion however, the expenditure “charged on”
the consolidated fund by the constitution is not open for vote, but other expenditure proposed
to be made from the fund is open to vote.
The amount thus sought from the consolidated fund is to vote. The amount thus sought from
the consolidated fund is to be passed as “Demands for Grants” in Lok Sabha. Money can be
withdrawn only by the Appropriation bill, to be passed by the Lok Sabha having power to
control the expenditure. The Railway Budget is also passed through the voting procedure in
parliament.
All these Demands for grants are in the nature of a request by the minister, to the Lok Sabha to
grant authority for expenditure mentioned there in these demands, in any form are budget to
“cut motions”. In three ways.
(i) Disapproval of Policy cut : It reduces the demands to Rs. 1 disapproving the policy.
(iii) Joken cut: It cuts the demand by Rs. 100. These are control parliament exercises in the
financial system in India.
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