With reference to Union Budget, consider the following statements:
- 1.The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament.
- 2.At the Union level, no demand for a grant can be made except on the recommendation of the President of India.
Which of the statements given above is/are correct?
Answer & explanation
Answer: (c) Both 1 and 2
UPSC's official answer: (c) · the answer UPSC accepted, and the one that counts in the exam
Also defensible: (b)
- Statement 2 is the Constitution's own words: Article 113(3), 'No demand for a grant shall be made except on the recommendation of the President.'
- Statement 1 says the Finance Minister lays the Annual Financial Statement 'on behalf of the Prime Minister'. Article 112(1) says 'the President shall in respect of every financial year cause to be laid before both the Houses of Parliament' the statement, and Lok Sabha Rule 204 says the Budget 'shall be presented to the House on such day as the President may direct'. In form, the Minister lays it for the President, not the Prime Minister.
- UPSC's key accepts statement 1 on its substance: the President acts on the advice of the Council of Ministers 'with the Prime Minister at the head' (Article 74), and the Finance Minister presents the Budget for that Government. Hence (c).
- A reader who holds the statement to the constitutional form, under which the statement is laid on the President's authority, rejects 1 and answers (b).
UPSC's key accepts statement 1 for its substance, the Finance Minister acting for the Government the Prime Minister heads; held to the form of Article 112, it fails and the answer is (b). In the exam, treat a statement as correct when its substance is right and only the form of words is loose.
- Constitution of India, Article 112(1): annual financial statement (Legislative Department) ↗“The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year”
- Rules of Procedure and Conduct of Business in Lok Sabha, Rule 204 (Budget), 17th edition (sansad.in) ↗“(hereinafter referred to as ‘the Budget’) shall be presented to the House on such day as the President may direct.”
- Constitution of India, Article 74(1): Council of Ministers headed by the Prime Minister (Legislative Department) ↗“There shall be a Council of Ministers with the Prime Minister at the head to aid and advise the President who shall, in the exercise of his functions, act in accordance with such advice”
This box is Minimalist IAS's analysis, with its sources; it does not change UPSC's answer.
Statement 2 is straight from the Constitution: Article 113(3) bars any demand for a grant without the President's recommendation. For statement 1, the Finance Minister lays the Annual Financial Statement before Parliament for the Government, the Council of Ministers headed by the Prime Minister, on whose advice the President 'causes' it to be laid under Article 112. UPSC's key treats both as correct.
- ✓ 1. Article 112(1) makes the President cause the Annual Financial Statement to be laid before both Houses; under Article 74 the President acts on the advice of the Council of Ministers with the Prime Minister at its head, and the Finance Minister lays the statement on the Government's behalf, presenting the Budget in the Lok Sabha and laying it in the Rajya Sabha.
- ✓ 2. Article 113(3): no demand for a grant shall be made except on the recommendation of the President. Demands for grants are submitted to the Lok Sabha only in this way.
Remember · Art 112: the President causes the Annual Financial Statement to be laid; the Finance Minister presents the Budget for the Government headed by the Prime Minister. Art 113(3): no demand for a grant without the President's recommendation.
📘 Read it in NCERT: Class 12 Social Change and Development in India, Ch 3 (practise this chapter)
Sources
- NCERT Class 12 · Social Change and Development in India, Chapter 3 “Every year in February the Finance Minister of the Government of India presents the Budget to the Parliament.”
- Constitution of India, Article 112(1): annual financial statement ↗ “The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year … No demand for a grant shall be made except on the recommendation of the President. … There shall be a Council of Ministers with the Prime Minister at the head to aid and advise the President who shall, in the exercise of his functions, act in accordance with such advice”
Question and answer: UPSC's official GS Paper I (2024, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 1 Oct 2026 (how we verify). ·