| Which of the following are means by which Parliament controls the financial system? |
| 1. Parliament has to authorise the levy or collection of any tax |
| 2. Money can be withdrawn from the Consolidated Fund of India only if Parliament sanctions it |
| 3. Though the financial committees that scrutinise Government expenditure |
| 4. It causes the Budget to be laid before it every year |
A) 1, 2, 3, 4
B) 1, 2 only
C) 2, 3, 4
D) 1, 2, 3
Correct Answer: D
Solution :
[d] There are specific provisions in the Constitution of India incorporating these tenets. For example, article 265 provides that 'no tax shall be levied or collected except by authority of law'; no expenditure can be incurred except with the authorisation of the Legislature (article 266); and President shall, in respect of every financial year, cause to be laid before Parliament, Annual Financial Statement (article 112). These provisions of our Constitution make the Government accountable to Parliament. The Constitution has, vested the power over the purse in the hands of chosen representatives of the people thus sanctifying the principle 'no taxation without representation'. Preparation of Budget for the approval of the Legislature is a Constitutional obligation of the Government both at the Centre and the State levels. Legislative prerogative over taxation, legislative control over expenditure and executive initiative in financial matters are some of the fundamental principles of the system of Parliamentary financial control. There are specific provisions in the Constitution of India incorporating these tenets. For example, article 265 provides that 'no tax shall be levied or collected except by authority of law'; no expenditure can be incurred except with the authorisation of the Legislature (article 266); and President shall, in respect of every financial year, cause to be laid before Parliament, Annual Financial Statement (article 112). These provisions of our Constitution make the Government accountable to Parliament.
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