Article 112 of CoI : Article 112: Annual Financial Statement

Explanation using Example

Imagine the government of India is planning its budget for the upcoming financial year. As per Article 112 of the Constitution of India, the President is required to present an "annual financial statement" to both houses of Parliament. This statement must include a detailed estimate of the government's receipts and expenditures for the year.

For example, the Finance Minister, on behalf of the President, prepares the Union Budget. This budget will show two types of expenditures: those that are charged upon the consolidated fund of India (like the salaries of the President, judges of the Supreme Court, and the Comptroller and Auditor General of India) and those that are not.

Charged expenditures are non-votable by Parliament, meaning they are a guaranteed payment and do not require a vote. For instance, the budget will allocate funds for the President's salary without the need for Parliament to vote on it.

Other expenditures, like funding for infrastructure projects or defense spending, will be included in the budget but must be voted on by Parliament. These are not charged on the consolidated fund and are subject to approval through the usual budgetary process.