GS PrelimsEconomyBudget2020

Along with the Budget, the Finance Minister also places other documents before the Parliament which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by

A

Long standing parliamentary convention

B

Article 112 and Article 110(1) of the Constitution of India

C

Article 113 of the Constitution of India

D

Provisions of the Fiscal Responsibility and Budget Management Act, 2003

Correct Answer: Option D

Explanation

1. The question asks why 'The Macro Economic Framework Statement' is presented along with the Budget in Parliament. 2. This requirement stems directly from the Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act). 3. Section 3(2) of the FRBM Act specifically mandates that the Central Government shall lay before both Houses of Parliament, along with the annual financial statement (the Budget) and demands for grants, three key documents: (a) the Medium-term Fiscal Policy Statement, (b) the Fiscal Policy Strategy Statement, and (c) the Macro-Economic Framework Statement. 4. Option (A) is incorrect; it's a statutory requirement, not just a convention. 5. Options (B) and (C) are incorrect; Article 112 deals with the Annual Financial Statement (Budget), Article 110(1) defines Money Bills, and Article 113 deals with the procedure in Parliament with respect to estimates. None of these articles mandate the presentation of the Macro Economic Framework Statement. 6. Therefore, the presentation is mandated by the Provisions of the Fiscal Responsibility and Budget Management Act, 2003.

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