Home » UPSC Combined Section Officer » Consider the following statements : The term ‘budget’ has nowhere be

Consider the following statements : The term ‘budget’ has nowhere be

June 1, 2025 by rawan239

Consider the following statements :

The term ‘budget’ has nowhere been used in the Constitution.
Article 112 of the Constitution of India deals with the budget.

Which of the above statements is/are correct ?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

This question was previously asked in

UPSC Combined Section Officer – 2024

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Both statements are correct. Statement 1 is correct because the term ‘Budget’ is not explicitly used in the Constitution of India. Instead, Article 112 refers to the ‘Annual Financial Statement’. Statement 2 is also correct as Article 112 of the Constitution deals with the presentation of the Annual Financial Statement (which is commonly referred to as the Budget) to both Houses of Parliament.

The Constitution uses the term ‘Annual Financial Statement’ in Article 112, not ‘Budget’. Article 112 outlines the procedure for presenting the government’s estimated receipts and expenditures for the coming financial year.

Article 112 requires the President to cause to be laid before both Houses of Parliament an annual financial statement showing the estimated receipts and expenditure of the Government of India for the financial year. This statement is divided into two parts: revenue budget and capital budget.

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