The estimates of revenue receipts take into account the effects of tax proposals made in the ______.
Show answer & explanation
Correct answer: A
Explanation
Correct answer: Finance bill
- The estimates of revenue receipts take into account the impact of the tax proposals outlined in the Finance Bill.
Key Facts:
- What is a Finance Bill?: It is a bill introduced by the government annually, at the time of presenting the budget, to implement new taxes, modify existing taxes, or continue them.
- Constitutional Provisions: Under Article 110 of the Constitution of India, the Finance Bill is categorized as a 'Money Bill'.
- Objective: Its primary objective is to provide legal authority to the government's financial plans and tax proposals, thereby enabling the collection of revenue (income).
- Process of Enactment: It can be introduced only in the Lok Sabha. The Rajya Sabha can merely recommend amendments to it but cannot reject it.
Brief Introduction to Other Options:
Appropriation Bill: This is passed to authorize the government to incur expenditure from the Consolidated Fund of India. (Article 114)
Constitution Amendment Bill: This is introduced to effect changes to the provisions of the Constitution. (Article 368)
Demands for Grants: This constitutes the part of the budget wherein each ministry seeks funds from Parliament to meet its expenditure requirements.