📜 Article 202 of the Indian Constitution
Title: Annual financial statement
🔹 Text Summary:
Article 202 mandates the presentation of the Annual Financial Statement (Budget) before the Legislative Assembly of every state. This is the State Budget, which shows the estimated receipts and expenditure for the upcoming financial year.
📌 Clause-wise Breakdown:
| Clause | Provision |
|---|---|
| (1) | The Governor shall cause to be laid before the Legislative Assembly of the state a statement of estimated receipts and expenditure for that year. |
| 👉 This is known as the Annual Financial Statement (State Budget). | |
| (2) | The estimates must distinguish expenditure into: |
| – Charged expenditure on the Consolidated Fund of the State (not voted on) | |
| – Other expenditure (voted by the Assembly) | |
| (3) | If the state has a Legislative Council (bicameral), the Budget is laid before both Houses, but only the Legislative Assembly can vote on it. |
📊 Types of Expenditure in Budget:
| Type | Explanation |
|---|---|
| Charged Expenditure | Automatically debited from the Consolidated Fund of the State; not voted upon. |
| 🔹 Examples: | |
| – Salary of Governor | |
| – Judges of High Court | |
| – Speaker and Deputy Speaker | |
| Voted Expenditure | Requires approval (vote) of the Legislative Assembly. |
| 🔹 Covers all other expenses like education, health, roads, etc. |
🧠 Key Takeaways:
-
The State Budget is constitutionally required under Article 202.
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It ensures financial accountability of the executive to the legislature.
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Reflects the government’s priorities for the upcoming year.
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Helps differentiate non-votable and votable expenses.
⚖️ Related Articles:
| Article | Subject |
|---|---|
| 112 | Annual Financial Statement (Union Budget) |
| 203 | Procedure for voting on State Budget |
| 204 | Appropriation Bills |
| 266 | Consolidated Fund and Public Account of States |
🏛️ Real-World Example:
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Uttar Pradesh Budget 2024–25 was presented in the Legislative Assembly under Article 202.
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The budget included charged expenditure (Governor’s salary) and voted expenditure (infrastructure schemes).
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