What is Article 112 of indian constitution

 

Article 112 of the Indian Constitution deals with the Annual Financial Statement, commonly known as the Union Budget.

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📜 Text Summary of Article 112:

The President shall, in respect of every financial year, cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year.

This statement is called the Annual Financial Statement (AFS).

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✅ Key Points of Article 112:

1. Union Budget = Annual Financial Statement:

   • It includes the estimated income (receipts) and expenditure of the government for the upcoming financial year (1st April to 31st March).

2. Presentation:

   • The President causes the statement to be laid before both Lok Sabha and Rajya Sabha, usually by the Finance Minister.

3. Structure of the Statement:

   • Divided into:

     • Consolidated Fund of India

     • Contingency Fund of India

     • Public Account of India

   • Also divided into Revenue Budget and Capital Budget.

4. Expenditure Categories:

   • Charged Expenditure: Not voted upon in Parliament (e.g., salaries of judges, President).

   • Votable Expenditure: Requires approval by the Lok Sabha.

5. Budget Types (under Article 112):

   • General Budget (for entire country)

   • Railway Budget (merged with General Budget since 2017)

   • Interim Budget (in case of elections or incomplete fiscal year)

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🏛️ Importance of Article 112:

• It ensures financial accountability of the Executive to the Legislature.

• Provides a constitutional mandate for the presentation and approval of the government’s financial plans.

• It's a vital tool for economic planning and governance.

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