Consider the following statements regarding enactment of budget in the

Consider the following statements regarding enactment of budget in the Parliament :

  • 1. Railway Budget used to be presented before the General Budget.
  • 2. The Finance bill must be enacted within 75 days of its introduction.

Which of the above statements is/are correct ?

1 only
2 only
Neither 1 nor 2
Both 1 and 2
This question was previously asked in
UPSC Combined Section Officer – 2024
Both statements 1 and 2 are correct.
– Historically, the Railway Budget was presented separately before the General Budget. This practice was merged with the Union Budget in 2017.
– The Finance Bill contains the government’s financial proposals for the upcoming financial year, including tax proposals. The Provisional Collection of Taxes Act, 1931, allows the government to collect certain taxes for a period of up to 75 days immediately after the Finance Bill is introduced, pending its final enactment. This effectively requires the Finance Bill to be enacted within 75 days of its introduction to make these tax proposals permanent.
The budget enactment process involves several stages in Parliament, including presentation of the budget, general discussion, scrutiny by departmental standing committees, voting on demands for grants in the Lok Sabha, passing of the Appropriation Bill (authorising expenditure), and passing of the Finance Bill (giving effect to tax proposals).
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