Multiple choice

Consider the following statements:

  1. After the demands for grants in the annual financial statement are voted by the Lok Sabha, the grants so made, as well as the expenditure charged on the Consolidated Fund of India are incorporated in the Annual Finance Bill.

  2. The taxing proposals of the budget are included in an Appropriation Bill.

Which of the statements given above is/are correct?

  1. Only 1

  2. Only 2

  3. Both 1 and 2

  4. Neither 1 nor 2

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Finance Bill contains taxation proposals, while the Appropriation Bill authorizes expenditures. Statement 1 incorrectly places expenditures in the Finance Bill, and Statement 2 incorrectly places tax proposals in the Appropriation Bill. These are two separate budget documents with distinct purposes.

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