PAPER II TOPIC 9
The finance is controlled by the parliament over the executive in three ways:
1. Budgetary control
- That is, control before the appropriation of grants before the enactment of budget.
- The enactment of the budget by the parliament legalizes the receipts and expenditure of the government for the ensuing financial year.
- No tax can be levied or collected and no expenditure can be incurred by the executive except under the authority and with the approval of parliament. hence the budget is placed before the parliament for its approval.
2. Post budgetary control
- That is, control after the appropriation of grants through the three financial committees:
b. estimate committee
c. committee on public understanding.
- They help parliament to scrutinize government spending and financial performance.
- These committees brings out the case of illegal, irregular, unauthorized, improper usage and wastage, and extravagance in public expenditure.
3. Rule of Lapse.
- Parliament grants money to government for one financial year. if the granted money is not spent by the end of the financial year, then the balance amount expires and returns to the consolidated fund of India.
- this practice is known as 'rule of lapse'. it facilitates parliamentary control as no reserve funds can be created without without parliament authorization.
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