Why is Budget Presented in the Lok Sabha and Not in the Rajya Sabha

As the Union Finance Minister is set to present the Union Budget tomorrow in the Lok Sabha, here is a short explainer on why the country’s most significant financial exercise is introduced only in the lower House of the Parliament.

The union budget is constitutionally referred to as the Annual Financial Statement. It sets out the government’s estimated receipts and expenditures for the upcoming financial year and forms the backbone of fiscal governance in India. Article 112 of the Constitution of India requires the President to lay the Annual Financial Statement before both Houses of the Parliament. This ensures transparency and enables parliamentary debate on the government’s fiscal policy.

However, the Budget does not acquire legal force merely by being laid before the Parliament. Its implementation depends on two crucial legislative instruments which are the Finance Bill and the Appropriation Bill. Therefore, while the Budget may be discussed in both Houses, its legislative journey begins effectively in the Lok Sabha.

The Rajya Sabha does not serve as the forum for Budget presentation not due some parliamentary practice nor political convention, rather a constitutional mandate rooted in Articles 110 and 112 of the Constitution of India, which vest the exclusive authority over Money Bills in Lok Sabha.

The key reason for this arrangement lies in Article 110, which defines what constitutes a Money Bill. Bills dealing with taxation, government borrowing, custody of public funds, and expenditure from Consolidated Fund of India will fall within this category. The constitution clearly provides that the Money Bills — Finance Bill and Appropriation Bill which facilitates taxation and government expenditure — can only be introduced in the Lok Sabha. The Rajya Sabha is constitutionally barred from initiating them.

The constitution says that Money Bills, like the Finance Bill and the Appropriation Bill can only be introduced in the Lok Sabha. These bills are important because they help figure out how taxes are collected and how the government spends its money. The Rajya Sabha is not allowed to start working on Money Bills on its own.

The Lok Sabha has power when it comes to money matters because it is the peoples choice. People directly elect members of the Lok Sabha so they really represent the people. Taxes and how the government spends money affect every person. The constitution follows the principle that decisions about money should be made by people who are chosen by the voters and have to answer to them. The Lok Sabha is important in matters because of this. The people elect the members of the Lok Sabha, which makes them responsible, to the people.

The Rajya Sabha is different, it is a body that forms through indirect election or selection. The Rajya Sabha has an important job, which is to look out for the interests of States and to make sure that things are thought through carefully when it comes to making laws. The Rajya Sabha plays a part in checking what the laws say but when it comes to money matters the Rajya Sabha does not have the same power, as the Lower House.

The fact that the Rajya Sabha does not introduce the Budget does not mean it is irrelevant. Members of the Upper House actively participate in Budget discussions and give feedback on government policies. According to Article 109, the Rajya Sabha can suggest changes to Money Bills, but these suggestions are not mandatory. The Lok Sabha can choose to accept or ignore them. Furthermore, the Rajya Sabha must return a Money Bill within 14 days; otherwise, the Bill is seen as passed.

This limited role ensures scrutiny without allowing financial legislation to be stalled, an outcome that could disrupt governance. While the Parliament is Bicameral, the Constitution does not accord equal power to both Houses in all matters. Financial asymmetry is a feature of constitutional scheme. Similar arrangements can be observed in other parliamentary democracies like the United Kingdom and Canada.

The constitution has something important to consider and that is the accountability of the people, in charge. The Union Council of Ministers has to answer to the Lok Sabha. For the government to work properly it needs the approval of the parliament to spend money from the Consolidated Fund of India. If the Lok Sabha does not agree to pass the Budget or the Appropriation Bill then the government will not get the money it needs. This will stop the government from doing its work. The Lok Sabha and the Budget are very important for the government to function.

Since only the Lok Sabha has the power to express lack of confidence in the government, financial authority is also vested in the same House. Allowing Rajya Sabha to initiate or veto the Budget would weaken this accountability mechanism and blur the link between financial control and political responsibility.

The presentation of the Union Budget in the Lok Sabha is not just a tradition or a matter of convenience. It results from careful constitutional choices meant to ensure democratic legitimacy, fiscal responsibility, and accountability in the executive branch. By giving financial authority to the body that directly represents the people's will, the Constitution makes sure public funds are managed with the consent of the public.

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