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

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...

Mutual Fund Review: Reliance Regular Savings Equity

    Despite high churn, Reliance Regular Savings Equity has managed to fetch good returns   In its short history, this one has made its mark. Though its annual and trailing returns are amazing, the fund started off on a lousy note (last two quarters of 2005). It managed to impress in 2006 and was turning out to be pretty average in 2007, till Omprakash Kuckian took over in November 2007 and wasted no time in changing the complexion of the portfolio. Exposure to Construction shot up to 28 per cent with almost 21 per cent cornered by Pratibha Industries and Madhucon Projects . Exposure to Engineering was yanked up (18.50%) while Financial Services lost its prime slot (dropped to 6.69%) and Auto was dumped. That quarter (December 2007), he delivered 54.66 per cent (category average: 25.70%).   When the market collapsed in 2008, thankfully the fund did not plummet abysmally. But even its high cash allocations could not cushion the fall which hovered around the category average. ...
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