8. What is the process of Budget approval?
The Finance Minister introduces the budget in the Lower House of the Parliament or the Lok Sabha & makes a short speech, giving a overall view of the budget.
After the presentation of the Budget, Parliament allots some time for a general discussion on the Budget. The finance minister replies at the end of the general discussion. The reply is also of a general nature and no specifics of the Budget are discussed. However, no motion is moved nor voting required at this stage.
After the finance minister's reply, Lok Sabha takes up for discussion each ministry's expenditure proposals, and is known as demand for grants. The demands for grants presented by each ministry are taken up by the House.
After, the prescribed period for the discussion on demands for grants is over, the Speaker applies the `guillotine', and all the outstanding demands for grants, whether discussed or not, are put to vote at once. Only the Lower House is entitled to vote.
Appropriation Bill is introduced in the Lok Sabha after it has passed all demands for grants relating to all ministries. This is to authorise the government to draw funds from the Consolidated Fund of India. Once this Bill is passed, it becomes the Appropriation Act and is certified as a Money Bill.
After passing of Appropriation Bill, the Finance Bill is introduced and it incorporates all taxation proposals. At this stage, amendments for tax proposal can be moved. After the passing of this Bill, it enters the statute as the Finance Act. Thus the final Budget gets approved.
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