2012 GS Paper I, all questions

UPSC Prelims 2012 · GS Paper I

Question 35: Economy and Social Development

Which of the following are the methods of Parliamentary control over public finance in India?

  1. 1.Placing Annual Financial Statement before the Parliament
  2. 2.Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill
  3. 3.Provisions of supplementary grants and vote-on-account
  4. 4.A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office
  5. 5.Introducing Finance Bill in the Parliament

Select the correct answer using the codes given below :

a1, 2, 3 and 5 only
b1, 2 and 4 only
c3, 4 and 5 only
d1, 2, 3, 4 and 5

AnswerUPSC’s answer is (a).

Parliament controls public money through several steps: the Annual Financial Statement (Budget) is placed before it (Article 112); money can leave the Consolidated Fund only after an Appropriation Act (Article 114); supplementary grants and vote-on-account are voted by it; and the Finance Bill gives legal effect to tax proposals. India had no Parliamentary Budget Office; that is a feature of the United States.

  • 1. The Annual Financial Statement is laid before Parliament under Article 112.
  • 2. Money leaves the Consolidated Fund only after an Appropriation Act.
  • 3. Supplementary grants and vote-on-account need Parliament's approval.
  • 4. India had no Parliamentary Budget Office.
  • 5. The Finance Bill is introduced to give effect to tax proposals.

How you could have got this

  1. If you were sure statement 4 is not correct, (b), (c) and (d) go: each of them includes 4.

    What you needed to know: India had no Parliamentary Budget Office.

Only (a) is left. You didn’t need statements 1, 2, 3 or 5.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Correct: Budget, Appropriation Act, supplementary grants and vote-on-account, and the Finance Bill.
  • (b) Wrong: it includes the Parliamentary Budget Office, which India did not have, and leaves out supplementary grants.
  • (c) Wrong: the Parliamentary Budget Office is not an Indian method and it leaves out the Budget.
  • (d) Wrong: statement 4 on a Parliamentary Budget Office is not an Indian method.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2012, General Studies Paper I, Series A. The paper on upsc.gov.in.