The constitutional procedure regarding financial matters ensures the supremacy of Lok Sabha. The constitution provides that no tax shall be decide or collected except by authority of parliament. Parliamentary authority here means that it will be discussed by both the Houses of Parliament.
The Annual financial statement popularly known at the; Budget’ Containing estimate of all receipts and expenditures are laid down before each House by the President. It is discussed in both Houses, however, Rajya Shaba has no right to amend it , but it is open for discussion.
The Lok Sabha has to section the Budget in advanced of every year. The money to be charged upon the consolidated fund is also put to discussion however, the expenditure “charged on” the consolidated fund by the constitution is not open for vote, but other expenditure proposed to be made from the fund is open to vote.
The amount thus sought from the consolidated fund is to vote. The amount thus sought from the consolidated fund is to be passed as “Demands for Grants” in Lok Sabha. Money can be withdrawn only by the Appropriation bill, to be passed by the Lok Sabha having power to control the expenditure. The Railway Budget is also passed through the voting procedure in parliament.
ADVERTISEMENTS:
All these Demands for grants are in the nature of a request by the minister, to the Lok Sabha to grant authority for expenditure mentioned there in these demands, in any form are budget to “cut motions”. In three ways.
(i) Disapproval of Policy cut. It reduces the demands to Rs. 1 disapproving the policy.
(ii) Economy cut, It reduces the demand to economize the expenditure.
(iii) Joken cut: It cuts the demand by Rs. 100. These are control parliament exercises in the financial system in India.