What is Article 112 of Indian constitution

 

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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