Constitutional Provisions related to Budget

This constitutional provision states that no tax shall be levied or collected except by authority of law. This principle underscores the necessity of parliamentary approval for any taxation measures proposed in the Budget.

The Finance Bill is introduced in Parliament immediately after the Budget speech. It contains proposals for new taxes, changes to existing taxes, or the continuation of existing tax laws. It becomes law after it is passed by both Houses of Parliament and receives Presidential assent.

Following the presentation of the Annual Financial Statement, the government seeks parliamentary approval for its expenditure through Demands for Grants. These are detailed proposals for the amounts of money required by various ministries and departments for the financial year.