The executive is given an advance grant to meet temporary and running requirements of Government of India in the beginning of the new financial year until the demands are voted by the legislature. This is known as
- A.Vote of Credit
- B.Vote on Account
- C.Appropriation Bill
- D.Advance Account
Correct answer
Explanation
The correct answer is B, Vote on Account. It is the advance grant the Lok Sabha makes so that the government can keep spending from 1 April until the full budget is passed. Article 116 of the Constitution allows it. No money can leave the Consolidated Fund of India without Parliament's approval, so this grant fills the gap. It usually covers two months, about one-sixth of the year's estimates. Since the budget moved to 1 February in 2017, it is mostly seen in election years, when the outgoing government leaves the full budget to the new Lok Sabha. A is wrong, because a vote of credit, also under Article 116, is a blank-cheque grant for an unexpected need that cannot be stated in detail. C is wrong, because the Appropriation Bill under Article 114 authorises withdrawal from the Consolidated Fund after the demands are voted. D is wrong, because advance account is not a budget term of the Constitution. Exam tip: vote on account keeps the government running, vote of credit is the blank cheque; both sit in Article 116.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
Show answer
Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Show answer
The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
Show answer
UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
Show answer
The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
Show answer
GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
Read the full explanation →