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General Studies 2 >> Polity

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BUDGET SESSION OF PARLIAMENT

BUDGET SESSION OF PARLIAMENT

 
 
 
1. Context
 
On the eve of Parliament’s Budget Session, the suspension of 14 Opposition MPs 11 from Rajya Sabha and three from Lok Sabha was revoked to enable them to attend the customary President’s address to both Houses of Parliament. 
 
 
2. What is the ‘session’ of the Parliament?
  • A session of the Parliament refers to the period during which both Houses of Parliament the Lok Sabha (House of the People) and the Rajya Sabha (Council of States) conduct their business.
  • It encompasses the time between the first meeting of a House after an election or prorogation (temporary discontinuation) and its subsequent prorogation or dissolution.
  • A session is a distinct period within a parliamentary year when Members of Parliament (MPs) convene to discuss, debate, and legislate on various matters.
  • The President of India, as the head of the state, summons each House of Parliament to meet, and the session concludes with prorogation, which is a formal way of ending a session.
  • In the case of the Lok Sabha, it can also end with the dissolution of the House, leading to general elections.

 

3. Who summons each House of Parliament to meet?

The President of India summons each House of Parliament to meet, as stipulated in Article 85 of the Constitution. This power grants the President the authority to initiate parliamentary sessions and ensure the legislative and representative roles of Parliament are fulfilled.

  • The President summons each House individually, meaning both the Lok Sabha (lower house) and the Rajya Sabha (upper house) receive separate summons.
  • While Article 85 doesn't dictate specific dates for summoning, it stipulates a maximum interval of six months between the last sitting of one session and the first sitting of the next. This ensures consistent parliamentary activity and prevents undue delays.
  • The President issues a formal notification announcing the date and place where each House will assemble. This notification triggers the necessary preparations and administrative measures for the session.
 

4. Types of Sessions of the Indian Parliament

 

Session Duration
Budget Session January-End to April-End/May-First
Monsoon Session July to August/September
Winter Session November to December
  • Budget Session of Parliament: Every year, the budget session takes place between February and May, and it is considered a crucial session of Parliament. The Finance Minister presents the budget on the last business day of February. Following the presentation, members analyze various aspects of the budget, including tax issues. The budget session is typically divided into two parts, with a one-month interval between them. The session commences with the President's Address to both Houses.
  • Monsoon Session of Parliament: Occurring every year during the monsoon season, from July to September, the monsoon session follows a two-month break after the budget session. This session is dedicated to addressing issues of public concern.
  • Winter Session of Parliament: Held every year from mid-November to mid-December, the winter session is the shortest among all sessions. It addresses issues that could not be covered earlier and compensates for the lack of legislative business during the second session of Parliament.

Special Session of Parliament: Apart from the regular sessions, a special session of the Lok Sabha can be convened under Article 352(8) of the 44th Amendment Act. If not less than one-tenth of Lok Sabha members write to the President (if Lok Sabha is not in session) or the Speaker (if Lok Sabha is in session), a special session can be called. This session is specifically for conducting business outlined in the notice of invitation to members, and no other business is considered during this session.

Joint Session of Parliament

Article 108 of the Constitution of India provides for a Joint Session of Parliament, allowing the Lok Sabha and the Rajya Sabha to convene together. This provision is employed to overcome any deadlock or stalemate between the two Houses. The President of India summons a joint session of Parliament, and the presiding officer is the Speaker of the Lok Sabha. In the absence of the Speaker, the Deputy Speaker of the Lok Sabha takes charge, and if both are unavailable, the Deputy Chairman of the Rajya Sabha presides. In case all three are not available, any other member of Parliament can preside with the approval of both Houses.

Lame-Duck Session

The term "lame-duck session" refers to the final session of the outgoing Lok Sabha after a new Lok Sabha has been elected. Lame ducks are Members of Parliament from the current Lok Sabha who have not been re-elected to the succeeding Lok Sabha.

 

5. What happens in the Budget Session of the parliament?

 

The Budget Session of the Parliament is a crucial and comprehensive session during which the government presents the Annual Budget. The Budget is a financial statement that outlines the government's revenue and expenditure for the upcoming fiscal year. 

  • The Budget Session usually begins with the President's Address to both Houses of Parliament. The President outlines the government's policies and priorities for the upcoming session.
  • The Finance Minister presents the Union Budget on a specified date, usually the last working day of February. The budget includes the government's expenditure and revenue plans for the upcoming financial year, which starts on April 1 and ends on March 31 of the following year. The budget outlines allocations for various sectors, proposed taxes, and other fiscal policies.
  • Following the budget presentation, both Houses of Parliament engage in a general discussion on the budget. Members of Parliament have the opportunity to analyze and debate different aspects of the budget, including its impact on various sectors, taxation policies, and overall economic implications. During this discussion, members may propose amendments or suggest changes to specific provisions of the budget.
  • Various parliamentary committees, such as the Standing Committees on Finance scrutinize the budget. These committees assess the budgetary proposals, seek clarifications from concerned ministries, and provide detailed reports with recommendations.
  • The budget is implemented through two key bills: the Appropriation Bill and the Finance Bill. The Appropriation Bill authorizes the government to withdraw funds from the treasury to meet its expenses. The Finance Bill contains taxation proposals and other financial measures announced in the budget. Both bills need to be passed by both Houses to give legal effect to the budget.
  • The Lok Sabha goes through a detailed discussion and votes on the demands for grants for various ministries and departments. This process ensures parliamentary approval for the specific expenditures proposed in the budget.
  • Alongside the Budget-related activities, the Parliament may also conduct other legislative business during the Budget Session. This could include discussions on various bills, statements by ministers, and debates on national issues.

 

6. About the interim budget

An interim budget is a temporary financial statement presented by the government when the general elections are around the corner, and a full-fledged budget for the upcoming fiscal year cannot be presented by the new government. It is essentially a vote on account of meeting the necessary expenditure for a limited period until the new government is in place and can present a full budget.

The presentation of an Interim Budget in a particular year is closely linked to the electoral calendar and the need for continuity in government operations during a period of political transition. In the context mentioned, it might be due to the impending general elections, ensuring financial stability until the new government takes charge.

Key features of an interim budget include

  • An interim budget is not a complete budget for the entire fiscal year. It serves as a temporary arrangement to meet the financial needs until the newly elected government presents a regular budget.
  • The interim budget typically refrains from introducing major policy changes or new schemes, as it is considered inappropriate for an outgoing government to make significant policy decisions that may bind the incoming government.
  • The interim budget seeks parliamentary approval for the government's necessary expenditures, including salaries, ongoing schemes, and other essential expenses, until the regular budget is presented.
  • Generally, an interim budget does not propose new taxes or major changes in existing tax structures. It maintains continuity in the existing tax regime to avoid imposing new financial burdens during the transitional period.
  • The financial provisions in an interim budget cover a short duration until the new government takes charge and presents a full budget for the entire fiscal year.
  • The interim budget includes a "Vote on Account," which is a grant made in advance by the Parliament to enable the government to meet its expenses until a formal budget is approved.
 
The difference between the interim budget and the Union Budget
 
Features Interim Budget Union Budget
Timing Presented in the final year of the current government, especially before general elections. Presented annually by the government, typically in February, for the upcoming fiscal year.
Scope and Duration Limited in scope and duration, covering a short period until the new government takes charge. Comprehensive, encompassing the government's revenue and expenditure proposals, policies, and strategies for the entire fiscal year.
Nature of Proposals Typically refrains from introducing major policy changes, new schemes, or significant alterations to tax structures. Considered a caretaker budget. Includes a wide range of financial proposals, covering tax policies, allocations, economic reforms, and long-term strategies. Reflects the government's goals for the fiscal year.
Vote on Account Includes a "Vote on Account" for an advance grant by Parliament to meet necessary expenditures until a full budget is approved. Proposes the entire financial plan for the fiscal year, seeking parliamentary approval for all aspects, including revenue and expenditure.
Government Status Presented by an outgoing government, especially in the context of impending general elections.  

Presented by the ruling government, reflecting its economic policies and priorities for the upcoming fiscal year.

 

7. The Way Forward

Understanding the nuances of various sessions and budget types, from the detailed financial planning of the Budget Session to the temporary nature of the Interim Budget, provides valuable insights into the functioning of India's parliamentary system.

 

For Prelims: Budget, Interim Budget, Parliamentary System

For Mains: 

1. Evaluate the significance of parliamentary scrutiny of the budget presented by the Finance Minister, including the role of committees and the 'demands for grants' process. (250 Words)
2. In a democracy, how can a balance be struck between upholding parliamentary decorum and ensuring the right to dissent and expression by elected representatives? (250 Words)
3. Discuss the challenges faced by parliamentary systems in ensuring fiscal responsibility and transparency, particularly during periods of economic uncertainty or political transitions. (250 Words)

 

Previous Year Questions

1. Consider the following statements: 
The Parliamentary Committee on Public Accounts (UPSC 2013)
1. consists of not more than 25 members of the Lok Sabha.
2. scrutinizes appropriation and finance accounts of the Government.
3. examines the report of the Comptroller and Auditor General of India.
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3 only
C. 3 only
D. 1, 2 and 3
 
 
2. With reference to the Parliament of India, which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, by-laws, etc., conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation? (UPSC 2018)
A. Committee on Government Assurances
B. Committee on Subordinate Legislation
C. Rules Committee
D. Business Advisory Committee
 
 
3. According to the Representation of the People Act, 1951, in the event of a person being elected to both houses of Parliament, he has to notify within ______ days in which house he intends to function. (Delhi Police Constable 2020) 
A. 22       B. 10        C.  20            D. 15
 
Answer: 1-B, 2-B, 3-B
 
Source: Indianexpress

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