Answer By law4u team
Constitution of India Article 112: Annual Financial Statement
(1) 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, in this Part referred to as the annual financial statement .
(2) The estimates of expenditure embodied in the annual financial statement shall show separately—
(a) the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of India; and
(b) the sums required to meet other expenditure proposed to be made from the Consolidated Fund of India, and shall distinguish expenditure on revenue account from other expenditure.
(3) The following expenditure shall be expenditure charged on the Consolidated Fund of India—
(a) the emoluments and allowances of the President and other expenditure relating to his office;
(b) the salaries and allowances of the Chairman and the Deputy Chairman of the Council of States and the Speaker and the Deputy Speaker of the House of the People;
(c) debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;
(d) (i) the salaries, allowances and pensions payable to or in respect of Judges of the Supreme Court;
(ii) the pensions payable to or in respect of Judges of the Federal Court;
(iii) the pensions payable to or in respect of Judges of any High Court which exercises jurisdiction in relation to any area included in the territory of India or which at any time before the commencement of this Constitution exercised jurisdiction in relation to any area included in a 1Governor's Province of the Dominion of India;
(e) the salary, allowances and pension payable to or in respect of the Comptroller and Auditor-General of India;
(f) any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;
(g) any other expenditure declared by this Constitution or by Parliament by law to be so charged .
NOTE
1 Subs. by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch., for a Province corresponding to a State specified in Part A of the First Schedule (w.e.f. 1-11-1956).
Brief Detail
Article 112 requires the President to present an annual financial statement to Parliament outlining the estimated receipts and expenditure for the financial year. It categorizes expenditure into charged and other expenditure, and defines specific areas where the expenditure is automatically charged on the Consolidated Fund of India, including the salaries of high officials, debt charges, and pensions for judges.
Question & Answers
What is the purpose of the Annual Financial Statement?
The Annual Financial Statement serves to inform Parliament of the estimated receipts and expenditure of the Government of India for the upcoming financial year, ensuring transparency and accountability in the financial planning process.
What expenditure is charged on the Consolidated Fund of India?
Expenditure charged on the Consolidated Fund includes the President’s emoluments, salaries of Parliament officials, debt charges, pensions for judges, the Comptroller and Auditor-General's salary, and any other expenditure declared by the Constitution or Parliament to be so charged.
Example
In the annual budget presented by the government, specific items like the salaries of the President, the Speaker, and debt repayments are automatically approved and paid from the Consolidated Fund of India, without requiring separate approval from Parliament. These are considered charged expenditures.
Summary
Article 112 ensures that the financial details of the Government of India for each year are presented before Parliament, distinguishing between expenditure charged on the Consolidated Fund and other proposed expenditures. Certain high-priority payments are automatically approved under the Constitution.
