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
- (a) Long standing parliamentary convention
- (b) Article 112 and Article 110(1) of the Constitution of India
- (c) Article 113 of the Constitution of India
- (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003 ✓ UPSC's answer
Why the answer is (d)
• The Fiscal Responsibility and Budget Management Act, 2003 (Section 3) requires the Government to lay before Parliament, with the Budget, a Macro-Economic Framework Statement, a Medium-Term Fiscal Policy Statement and a Fiscal Policy Strategy Statement — option (d).
• The Macro-Economic Framework Statement gives growth, fiscal balance and external-sector assessments underlying the Budget.
• Article 112 (b) mandates only the Annual Financial Statement; Article 113 (c) governs demands for grants; convention (a) is not the source.
• Hence option (d).
Why the other options are wrong
- (a) Long standing parliamentary convention
- It is a statutory requirement, not a convention.
- (b) Article 112 and Article 110(1) of the Constitution of India
- Article 112 mandates only the Annual Financial Statement.
- (c) Article 113 of the Constitution of India
- Article 113 deals with demands for grants.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.