UPSC Prelims 2011 question on Budget Defeat Lok Sabha

Analysis

In a parliamentary system, the Union Budget is a crucial financial proposal of the government. If the Lok Sabha rejects it, the government is considered to have lost the confidence of the House.

1. The Prime Minister submits the resignation of Council of Ministers — Correct

Under Article 75, the Council of Ministers is collectively responsible to the Lok Sabha.

If the Annual Union Budget is not passed by the Lok Sabha, it means the government no longer enjoys majority support. Therefore, the Prime Minister must submit the resignation of the Council of Ministers.

2. The Budget is modified and presented again — Incorrect

Rejection of the Budget is not treated as a minor technical issue.

It is treated as loss of confidence in the government, so the government cannot simply modify and re-present it without proving majority support.

3. The Budget is referred to Rajya Sabha — Incorrect

The Budget involves Money Bills, where Rajya Sabha has limited powers.

Rajya Sabha can only make recommendations, and Lok Sabha may accept or reject them. It cannot rescue a Budget rejected by Lok Sabha.

4. The Finance Minister is asked to resign — Incorrect

The failure of the Budget is a failure of the entire Council of Ministers, not only the Finance Minister.

This follows the principle of collective responsibility.