Skip to main content

Budget debated in Parliament

How is the budget debated in Parliament?

Budget discussion in the Lok Sabha is a two-stage process. In the first stage there is a general discussion on the budget as a whole, lasting 4-5 days. Only the broad contours of the budget and the principles and policies underlying it are discussed at this stage. After the general discussion on both the railway and general budgets, the House is adjourned for a period. In this interval, demands for grants of various ministries and departments including railways are considered by the concerned standing committees (Rule 331G). These committees are required to submit their reports to the House within a specified period without asking for more time. The reports of the standing committees are of persuasive nature, they cannot suggest anything in the nature of cut motions.

How are demands for grants dealt with by the Lok Sabha?

After the reports of the standing committees are available with the House, it begins discussion and voting on demands for grants of each ministry. The speaker, in consultation with the leader of the House, fixes for the time for discussion and voting on demands for grants. On the last day, the speaker puts all the outstanding demands to vote. This process is known as 'guillotine'. The Lok Sabha has the power to assent to or refuse to give assent to any demand or even to reduce the amount of grant sought by the government.

What are cut motions?

These are moved to discuss specific matters by the minister concerned or to ventilate grievances or to suggest economies. Each motion has to focus on one matter and one demand, which needs to be precisely stated. It must not relate to expenditure charged to the consolidated fund of India and not suggest any change of law. There are three types of cuts.

What are the different types of cut motions?

Policy cuts: There is a notional cut of Re 1 to express total disapproval of the policy. Token cut: Grant is sought to be reduced by Rs 100 and the purpose is to ventilate a grievance relating to the demand. Economy cuts: There are cuts suggested by members to bring about economy in expenditure, or to reduce the demand by such amounts that may be considered necessary.

What are the implications of a cut motion getting passed?

The cut motions are put to vote after discussion. Depending on the result of the vote the demands are either reduced or allowed to go through. Cut motions invariably put the government on the defensive, but if the replies are convincing and the ruling party has a good majority then it would not mean much. If the cut motion goes through, the government will have to resign.

Popular posts from this blog

Retirement planning from a long-term perspective

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds     `HOW green was my valley'. This title comes from a movie I had watched many years ago. A little boy's journey into adulthood and the story of a Welsh valley's turn of-the-century descent from pristine paradise to despoiled coal mining.   I thought of the title because it is comparatively reflective of a person's life ­ the glorious years when he is earning and the sun down years when he is not having his regular job and, hence, his living standards comes down. The reason is a combination of things. Inflation of food items, transport, increase in health related costs in the later years of life and increase in expenses in almost all basic amenities of life. In India, the social security system is almost non-existent. In some states, wherever it is available, the scales of benefits are extremely modest...

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...

Investment Strategy - What is Sector Rotation Theory?

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   The economy goes through cycles : it expands for a few years and then contracts. Study of historical data suggests that different sectors tend to perform well on the stock markets during different stages of the economic cycle. While history never repeats itself exactly, some broad patterns tend to recur. Investors can take advantage of the sector rotation theory to move their money from those sectors that have seen their best times to those that are likely to do well in future.   The person who developed the sector rotation theory is Sam Stovall, chief investment strategist at Standard & Poor's. He developed this theory by studying data on economic cycles going as far back as 1854 provided by the National Bureau of Economic Research ( NBER ) of the US.   When trying to correlate stock-market perfor...

Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch this week

The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme ( RGESS ) this week.   Though Finance Minister PChidambaram had approved on September 21, the scheme announced in this year's Budget, and had said that the revenue department will notify the scheme and the Securities and Exchange Board of India ( Sebi ) would issue relevant circulars within two weeks, it is yet to become operational.   A senior finance ministry official said the revenue department was expected to notify the scheme any day now to attract retail investors to the equity segment.   He added that Sebi was not required to issue any circular for the operationalisation of the scheme and that after the issuance of the revenue department's notification, investors would be able to avail of the benefits of the scheme.   The official accepted that implementation of the scheme had been delayed due to the deliberations on inclusion of mutual funds ( MF ) in it.   ...

CNX Midcap vs BNP Paribas Midcap Fund

BNP Paribas Midcap Fund - Invest Online   Te  performance of BNP Paribas Midcap Fund  – which has across the last 3 years generated superior returns over the benchmark – especially when the markets have gone down the fund has handsomely outperformed the benchmark preserving the capital of the investors. The fund has been able to do this only due to the superior stock selection process ( BMV approach) that is diligently followed at BNPP.   Highlights of BNP Paribas Mid Cap Fund:   Investment Objective : BNP Paribas Mid Cap Fund gives an investor exposure to invest in the various quality midcap stocks. The fund also has some exposure to large as well as small cap stocks.   Investment Approach : BMV ( Quality and scalability of Business →Good Management → Reasonable Valuation ) with Bottom-up stock picking.   Most of the investors are way happier if the fund that they have invested in is a significant Outperformer in tough times than in Good ti...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now