INTRODUCTION
The President of India is the fiscal head and has a critical role in the administration of finance. One of the primary responsibilities of the President of India is to ensure financial stability. The President of India can be a member of both Rajya Sabha as well as Lok Sabha. He is a member of the “Union Executive” including the Prime Minister, Vice-President, and Council of Ministers.
DUTY OF THE PRESIDENT
The primary duty of the Indian President is to defend, preserve, and protect the Constitution of India as per Article 60 of the Indian Constitution. The President of India plays a critical role in the financial administration of the country. Article 112 of the Indian Constitution assigns some role to the President at the financial sphere. The financial powers of the Indian President are:
- Money bills can only be introduced in Parliament with his prior approval.
- He arranges for the annual financial statement to be laid before Parliament (i.e., the Union Budget).
- No grant request can be made unless he recommends it.
- He can make advances from India’s contingency fund to cover any unforeseen expenses.
- Every five years, he appoints a finance commission to recommend the distribution of revenues between the Centre and the states
- Places report of Comptroller and Auditor General of India before parliament & recommendations of Finance commission
- Powers to distribute the share of income-tax among the States: President of India has the power to distribute the share of income-tax among the States
IMPORTANCE OF THE FINANCIAL POWERS
- The President of India is the fiscal head and is an essential part of financial administration. The Indian President has to make multiple decisions in terms of running the activities of the Indian government smoothly. He has the responsibility to ensure the financial stability of the nation as well as exercise the financial powers effectively. In the concept of financial powers, the president has the control over the Contingency Fund of India as per Article 267 of the Indian Constitution. As per Article 280 of the Constitution of India, the President of India appoints the Finance Commission.
- There is an effective importance of the financial powers in terms of maintaining stability in the field of finance of the nation. The President receives the reports of the Comptroller and Auditor-General of India effectively. The powers of the Indian Presidents assist in defending and protecting the Indian constitution effectively. The President of India appoints the Finance Commission which consists of almost four members and one chairman appointed by the president. The Indian President has effective control over the Contingency Fund of India in order to achieve unforeseen expenses. Powers are essential in maintaining the practices of the President of India and developing stability in the financial management of the nation.
FINANCIAL BILLS
A Bill that contains some provisions related to taxation and expenditure, and additionally contains provisions related to any other matter is called a Financial Bill. Therefore, if a Bill merely involves expenditure by the government, and addresses other issues, it will be a financial bill.
Article 117(1) deals with Finance Bill. They contain not only any or all the matters mentioned in Article 110 of the Indian Constitution, but also other matters of general legislation. They can only be introduced in Lok Sabha. President’s recommendation is needed to introduce them. President can return it for reconsideration.
Article 117(2) deals with Finance Bill-II. They contain provisions involving expenditure from Consolidated Fund of India, but not included in Article 110 of the Indian Constitution. They can only be introduced in both the Houses of Parliament. President’s recommendation is not needed to introduce them. President can return it for reconsideration.
FINANCE ACT
The Finance Act is an act of Parliament by which the Union Government of India gives effects to the financial proposals given by the government for the following financial year.
The finance bill is introduced to the Lower House after the Union Budget is presented by the finance minister. Once the proposals are passed by the parliament and assented to by the President, it becomes the Finance Act of that year.
There is a new Finance Act every financial year which makes this act an act that renews itself every year. This act basically is an umbrella act that includes all the government’s financial policies
CONCLUSION
The President of India has the power of introducing the money bills for the country. The concept of a money bill is defined effectively in Article 110 of the Constitution of India. A money bill in the country comprises the proposals of tax of government as well as delivers information on new taxes and variation or rates changes of present taxes. It also comprises the borrowings, revenues as well as expenditure of the government.
Based on the above discussion it can be concluded that the President of India has the power to control the Contingency Fund of India and appoints the Finance Commission as per Article 267 and Article 280 of the Constitution of India. The president is the head of the state and plays an important role in the financial administration. The article discussed the financial power of the President, his role, as well as the importance of financial powers. The President is the first citizen of the country and works for the integrity and unity of the nation.
REFERENCES
https://prepp.in/news/e-492-financial-powers-of-president-indian-polity-notes
https://unacademy.com/content/railway-exam/study-material/polity/financial-powers-of-the-president/
https://www.drishtiias.com/mains-practice-question/question-316
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