Question
Q36. 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
a. Long standing parliamentary convention
b. Article 112 and Article 110(1) of the Constitution of India
c. Article 113 of the Constitution of India
d. provisions of the Fiscal Responsibility and Budget Management Act, 2003
Answer: D
Detailed Explanation
The Macro-economic Framework Statement is a statement presented to the Parliament at the time of the Union Budget under Section 3(5) of the Fiscal Responsibility and Budget Management Act, 2003. Hence option 4 is correct.
It contains an assessment of the growth prospects of the economy with specific underlying assumptions.
It contains an assessment regarding the expected GDP growth rate, fiscal balance of the Central Government, and the external sector balance of the economy.
The statement is submitted annually.
Documents mandated by FRBM Act, 2003
Macro-Economic Framework Statement
Fiscal Policy Strategy Statement
Medium Term Fiscal Policy Statement
Medium Term Expenditure Framework Statement- (to be presented in parliament in the Session after the Budget session).
Article 112 of the Constitution of India mandates the Annual Financial Statement that contains estimated receipts and expenditures of the Government of India.
Under Article 110 (1) of the Constitution, a Bill is deemed to be a Money Bill if it contains provisions dealing with six specific matters [Article 110 (1)(a) to (1)(f)] broadly related to – imposing, abolishing or regulating a tax; regulating government borrowings; the Consolidated and Contingency Funds of India; and “any matter incidental to any of the matters specified in (the previous six) sub-clauses.
Article 113 of the Constitution of India mandates that estimates of expenditure from the Consolidated Fund of India are included in the Annual Financial Statement, which are required to be voted by the Lok Sabha, and submitted in the form of demand for grants.
