Along with the Budget, the Finance Minister also places other document

Along with the Budget, the Finance Minister also places other documents before the Parliament which include ‘The Macro Economic Framework Statement’. The aforesaid document is presented because this is mandated by

Long standing parliamentary convention

Article 112 and Article 110(1) of the Constitution of India

Article 113 of the Constitution of India

Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2020

Download PDF Attempt Online

The document ‘The Macro Economic Framework Statement’ is presented along with the Budget because it is mandated by the provisions of the Fiscal Responsibility and Budget Management Act, 2003.

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, is an Act of the Parliament of India that sets targets for the government to establish financial discipline, reduce the fiscal deficit, and improve macroeconomic management. Section 3(1) of the Act requires the Central Government to lay before both Houses of Parliament certain documents along with the Annual Financial Statement (Budget). These documents include the Macro Economic Framework Statement, the Medium Term Fiscal Policy Statement, and the Fiscal Policy Strategy Statement.

Article 112 of the Constitution of India requires the government to present an Annual Financial Statement (the Union Budget). Article 110 deals with Money Bills. Article 113 deals with the procedure in Parliament with respect to estimates. While these articles lay down the constitutional basis for the Budget presentation, the specific requirement to present documents like the Macro Economic Framework Statement alongside the budget originates from statutory requirements, specifically the FRBM Act. Parliamentary convention supports transparency and laying documents before Parliament, but the specific mandate for this document is legal.

Join Our Telegram Channel

More similar MCQ questions for Exam preparation:-