India's Budget Presentation In Lok Sabha

Article 87(1) of the Constitution provides:- "At the commencement of the first session after each general election to the House of the People and at the commencement of the first session of each year the President shall address both Houses of Parliament assembled together and inform Parliament of the causes of its summons."

In the case of the first session after each general election to Lok Sabha, the President addresses both Houses of Parliament assembled together after the Members have made and subscribed the oath or affirmation and the Speaker has been elected. It takes generally two days to complete these preliminaries. No other business is transacted till the President has addressed both Houses of Parliament assembled together and informed Parliament of the causes of its summons.

In the case of the first session of each year, the President addresses both Houses of Parliament at the time and human life. They have to perform manifold functions from maintaining law and order, protecting their territories to implementation of plans for economic and social betterment. Besides, they provide a variety of social services like education, health, employment and housing to the people.

Needless to say, Government require adequate resources to discharge these functions effectively. Where is this money to come from and who is to sanction the funds? The necessary funds are mobilised from the country's resources by way of taxes both direct and indirect, loans both long-term and short-term, to meet the Governmental expenditure. In India, the principal sources of revenue are customs and excise duties and Income-tax on individuals and companies.
Need for Budget

It is not as if the Government can tax, borrow and spend money the way it likes. Since there is a limit to the resources, the need for proper budgeting arises to allocate scarce resources to various Governmental activities. Every item of expenditure has to be well thought out and total outlay worked out for a specific period. Prudent spending is essential for the stability of a Government and proper earnings are a pre-requisite to wise spending. Hence, planned expenditure and accurate foresight of earnings are sine-qua-non of sound Governmental finance.