Question

Which of the following are the methods of Parliamentary control over public finance in India? Select the correct answer using the codes given below.

1. Withdrawal of money from the Consolidated Fund of India only after passing the Appropriation Bill.
2. A periodic or at least a mid-year review of the program of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office.
3. Introducing Finance Bill in the Parliament.

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. All of the above

Answer 1

Correct Answer - Option 3 : 1 and 3 only

The correct answer is 1 and 3 only.

• The Parliament is the custodian of public money.
• The methods adopted by the Parliament for controlling expenditure may be broadly classified into two categories:

1. Built-in techniques in parliamentary procedure, and
2. Committees appointed by the Parliament.

• Withdrawal of money from the Consolidated Fund of India only after passing the Appropriation Bill. Hence, Statement 1 is correct.
• Introducing Finance Bill in the Parliament. Hence, Statement 3 is correct.
• Constitutional Measures:
  • Any withdrawal from the Consolidated Fund of India can not be done without the approval of the Parliament. (Money bills in Article 110)
• Lok Sabha Rules
  • Motion: While no-confidence motion can be moved to dissolve the LS (if passed), there exist other motions to control the executives like censure motion, privilege motion.
  • Committees: Public Accounts Committee is a standing committee of Parliament to make sure that the expenditures done out of the public purse by the executives are well-intentioned and appropriate as per the needs of the welfare of citizens of India.
  • Question hour and zero hour: to address the questions of MPs who are representatives of the people of India.