economics hard MCQ

In the Indian Parliamentary budget process, what is the specific purpose of a 'Cut Motion' moved by Members of Parliament?

  1. To demand an immediate increase in the allocation for a specific ministry
  2. To formally express disapproval of a specific demand for grant and propose a reduction in the amount
  3. To force the resignation of the Finance Minister
  4. To authorize the government to collect new taxes before the Finance Bill is passed

Answer: To formally express disapproval of a specific demand for grant and propose a reduction in the amount

Cut Motions are a vital tool for parliamentary financial control and accountability. MPs can move a Policy Cut (reducing the demand to Re. 1 to signify total disapproval of the policy), an Economy Cut (reducing the amount by a specific sum to enforce financial prudence), or a Token Cut (reducing by Rs. 100 to air a specific grievance). If a Cut Motion passes, it amounts to a no-confidence vote, forcing the government to resign.

Topic Public Finance - Budgeting
Exam Relevance UPSC Prelims, SSC CGL
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