State Budget Practice Questions
20 free State Budget practice questions for the Indian Polity. Tap an option to answer — you get instant feedback, the correct answer, and a detailed explanation for every question.
Who presents the State Budget in the Legislative Assembly?
- A The State Governor
- B The State Chief Minister
- C State Finance Minister
- D The Assembly Speaker
Correct answer: State Finance Minister
The State Finance Minister presents the budget in the Legislative Assembly. It outlines the estimated receipts and expenditures for the financial year. The Governor formally causes it to be laid before the House.
Under which Article is the State Budget presented?
- A Article 110
- B Article 112
- C Article 356
- D Article 202
Correct answer: Article 202
Article 202 provides for the Annual Financial Statement of a state. It details the estimated revenue and expenditure. This forms the basis of the state budget.
Which House has the power to vote on demands for grants in a state legislature?
- A The Legislative Council
- B Both Houses
- C Governor
- D Legislative Assembly
Correct answer: Legislative Assembly
Only the Legislative Assembly has the power to vote on demands for grants. This reflects its financial supremacy. The Legislative Council can only discuss them.
What is 'charged expenditure' in the state budget?
- A Expenditure not subject to vote
- B Expenditure already voted by the Assembly
- C Expenditure for development
- D Temporary expenditure
Correct answer: Expenditure not subject to vote
Charged expenditure is not subject to vote in the Assembly. It includes items like salaries of judges and interest payments. However, it can be discussed.
Which bill authorizes withdrawal of funds from the Consolidated Fund of the State?
- A Finance Bill of the State
- B Money Bill
- C Budget Bill of the State
- D Appropriation Bill
Correct answer: Appropriation Bill
The Appropriation Bill authorizes withdrawal of money from the Consolidated Fund. It is passed after demands for grants are approved. Without it, no expenditure can be made.
What is a 'cut motion' in the state budget process?
- A Reduction of demand for grant
- B Increase in total expenditure
- C Delay in budget
- D Approval of budget
Correct answer: Reduction of demand for grant
A cut motion is a proposal to reduce a demand for grant. It allows members to express disapproval of government policies. It is an important tool of legislative control.
Who recommends the introduction of a Money Bill in a state legislature?
- A Chief Minister
- B Speaker
- C President
- D Governor
Correct answer: Governor
The Governor’s recommendation is required before introducing a Money Bill. This ensures executive control over financial matters. It is a constitutional requirement.
What is 'Vote on Account' in the state budget?
- A Temporary fund withdrawal
- B Final approval of the budget
- C Rejection of budget
- D Audit process
Correct answer: Temporary fund withdrawal
Vote on Account allows temporary withdrawal of funds. It is used when the budget is not passed before the financial year begins. It ensures continuity of government functions.
Which budget stage allows members to debate broad policy issues without taking a vote?
- A General Discussion
- B Appropriation Stage
- C Finance Bill Stage
- D Voting Stage
Correct answer: General Discussion
The General Discussion stage allows members to debate the budget. No voting takes place at this stage. It focuses on broad policy issues.
Which bill deals with taxation proposals in the state budget?
- A Finance Bill
- B Appropriation Bill
- C Money Bill
- D Supplementary Bill
Correct answer: Finance Bill
The Finance Bill contains taxation proposals. It must be passed to implement tax changes. It completes the budget process.
What is the financial year for state budgets in India?
- A April to March
- B January to December
- C July to June
- D October to September
Correct answer: April to March
The financial year in India runs from April 1 to March 31. State budgets are prepared for this period. It aligns with the Union budget cycle.
Which body scrutinizes state budget estimates in detail?
- A High Court
- B Public Accounts Committee
- C Governor
- D Departmental Committees
Correct answer: Departmental Committees
Departmental committees examine budget estimates in detail. They analyze expenditures of different departments. Their reports help improve financial efficiency.
What happens if a demand for grant is rejected in the Legislative Assembly?
- A Government resigns
- B Budget continues
- C Assembly dissolves
- D Governor intervenes
Correct answer: Government resigns
Rejection of a demand for grant indicates loss of confidence in the government. The Council of Ministers must resign. It reflects legislative control over finances.
What is 'Supplementary Grant' in the state budget?
- A Initial budget allocation
- B Additional funds beyond estimate
- C Reduction in budget
- D Temporary grant for special purposes
Correct answer: Additional funds beyond estimate
Supplementary Grant is provided when actual expenditure exceeds budget estimates. It requires legislative approval. This ensures financial accountability.
Which House can only discuss but not vote on state budget demands?
- A Legislative Assembly
- B Legislative Council
- C Both Houses
- D Governor
Correct answer: Legislative Council
The Legislative Council can discuss but cannot vote on demands for grants. The power to vote lies with the Assembly. This shows its limited financial powers.
What is 'Guillotine' in the state budget process?
- A Complete rejection of the state budget
- B Passing demands without discussion
- C Increase in taxes
- D Audit process
Correct answer: Passing demands without discussion
Guillotine refers to passing remaining demands for grants without discussion. This happens due to lack of time. It ensures timely completion of the budget process.
Who ensures that no money is withdrawn without legislative approval?
- A Governor
- B The State Finance Minister
- C Legislative Assembly
- D High Court
Correct answer: Legislative Assembly
The Legislative Assembly controls state finances. No money can be withdrawn without its approval. This ensures democratic accountability.
Which fund is the main account for state revenues and expenditures?
- A Public Account
- B Contingency Fund of the State
- C Consolidated Fund of State
- D Reserve Fund
Correct answer: Consolidated Fund of State
The Consolidated Fund of the State is the main account. All revenues and expenditures are recorded here. Withdrawal requires legislative approval.
Which authority causes the budget to be laid before the state legislature?
- A Chief Minister
- B Governor
- C Speaker
- D Finance Minister
Correct answer: Governor
The Governor causes the budget to be laid before the legislature. This is done on the advice of the Council of Ministers. It is a constitutional function.
Which stage follows voting on demands for grants in the state budget?
- A General Discussion
- B Finance Bill
- C Appropriation Bill
- D Budget Presentation
Correct answer: Appropriation Bill
After voting on demands, the Appropriation Bill is introduced. It authorizes expenditure from the Consolidated Fund. This is essential for implementing the budget.