Constitutional Position of the Union Budget

Article 266 of the Indian Constitution provides about creation of the “Consolidated Fund of India”. In simple language this "Consolidated Fund of India" has in whole or part of the net proceeds of certain taxes and duties to States, all revenues received by the Government of India, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by that Government in repayment of loans.
This means that all revenues received by the government, loans raised by it and receipts from the recoveries of loans granted by it make the “Consolidated Fund of India”. All expenditures of the Govt. is incurred from the Consolidated Fund of India, but no amount can be withdrawn from the fund without the authorization from the Parliament.
Government of India gets this authorization from the parliament of India through “Budget”
At the beginning of every financial year, the President of India causes to be laid a statement of the estimated receipts and expenditure of the Government of India for that year before both the houses of the parliament. It is called “Annual Financial Statement” which is commonly known as Budget.

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