Q. Consider the following statements:
1.The budget is based on the principle of annuity.
2.If the granted money is not spent by the end of the financial year, then the balance expires and returns to the Consolidated Fund of India.
Which of the statements given above is/are correct?
Answer: C
Notes:
Explanation: The budget is based on the principle of annuity, that is, the Parliament grants money to the government for one financial year.
- If the granted money is not spent by the end of the financial year, then the balance expires and returns to the Consolidated Fund of India.
- This practice is known as the ‘rule of lapse’.
Source: Laxmikanth’s Polity
