Pranab signs ordinance on Uttarakhand expenditure

President Pranab Mukherjee has promulgated the Uttarakhand Appropriation (Vote on Account) Ordinance, 2016 which authorizes expenditure in the hill state that has come under direct federal rule because of a political crisis.

The ordinance allows for the withdrawal of about Rs.13,642.43 cr. to meet the state’s expenditure during the ongoing fiscal year. The decision to issue the ordinance was taken at a Union cabinet meeting, which in the absence of Prime Minister Narendra Modi, who is on a foreign trip, was chaired by home minister Rajnath Singh.

Vote-on-account

Vote-on-account literally means a vote on the accounts of the government. Usually, the annual budget is presented by the end of February after which it is discussed — details of the budget are scrutinized by a Parliamentary committee and it is finally passed by mid-May.  However, this time, this could be in the middle of elections or another government could be in power depending on the election schedule. 

During elections and till a new government takes over, the caretaker government needs funds for various routine items of expenditure — like staff salaries — without which there would be a financial crisis. According to the Constitution, the government cannot spend any money without Parliament’s approval. 

Hence, voteion-account is taken where by a government gets parliamentary approval to run the government for a few months, using funds drawn from the Consolidated Fund of India.

Uttrakhand in recent news:

Extra info:
  • Soon after the notification was published, the Congress moved the Uttarakhand high court, saying the Uttarakhand legislative assembly had already passed the Appropriation Bill on 18 March.
  • Home minister of India –  Rajnath Singh.

so lets do:
  • Name the state where President’s rules has been imposed recently ?
  • Who is the governor of Uttarakhand ?
  • What is the article number for President’s rule ?
  • Who is the Home Minister of India?


Source – The Hindu

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