Question

Which among the following is correct in context with the powers of the parliament in enacting the budget ?
[A] Parliament can increase tax but can not reduce or abolish it
[B] Parliament can reduce or abolish a tax but can not increase
[C] Parliament can neither increase nor reduce or abolish a tax
[D] Parliament can increase as well as reduce or abolish a tax

Answer 1

(B)Parliament can reduce or abolish a tax but can not increase.

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Answer 2

The general budget in the Indian Parliament has totally 109 demands out of which 103 is for civil and 6 for defence expenditures. The railways have another 32 budgets separately. The tax can be reduced or increased by the Parliament but cannot be abolished. The demands come into existence only by the votes of the people in Lok Sabha. Discussions take place on the details of the budget and any move can be taken to reduce the demand whereas increasing and revising of any demands is not permissible. To bring a moral pressure on the executive cut motions are moved and the government is attracted. There are many other grants other than budget. The supplementary grants for a year are sanctioned by the Parliament.