Civil Services Prep

Prelims 2020 · Economy · Question 36

Along with the Budget, the Finance Minister also places other documents before the Parliament which include "The Macro Economic Framework Statement". The aforesaid document is presented because this is mandated by

  1. Long standing parliamentary convention
  2. Article 112 and Article 110(1) of the Constitution of India
  3. Article 113 of the Constitution of India
  4. Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Answer

Provisions of the Fiscal Responsibility and Budget Management Act, 2003

  • (a) Long standing parliamentary convention: Incorrect. The Macro-Economic Framework Statement is not merely a convention-based document; it is a statutory requirement.
  • (b) Article 112 and Article 110(1): Incorrect. These deal with the Annual Financial Statement and Money Bills, not specifically with the Macro-Economic Framework Statement.
  • (c) Article 113: Incorrect. Article 113 relates to procedure in Parliament with respect to estimates/demands for grants, not this statement.
  • (d) FRBM Act, 2003: Correct. The Fiscal Responsibility and Budget Management Act, 2003 mandates presentation of documents such as the Macro-Economic Framework Statement along with the Budget.
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