Q. Which of the following provision/s of budget in the Constitution of India is/are correct?
1.No demand for a grant shall be made except on the recommendation of the President.
2.No money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law.
3.Parliament can reduce or abolish a tax but cannot increase it.
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: D
Notes:

Explanation: The Constitution of India contains the following provisions with regard to the enactment of budget:

  • The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of estimated receipts and expenditure of the Government of India for that year.
  • No demand for a grant shall be made except on the recommendation of the President.
  • No money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law.
  • No money bill imposing tax shall be introduced in the Parliament except on the recommendation of the President, and such a bill shall not be introduced in the Rajya Sabha.
  • No tax shall be levied or collected except by authority of law.
  • Parliament can reduce or abolish a tax but cannot increase it.

Source: Laxmikanth Polity