Change set

Pick exam & year, then Go.

Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q96 (IAS/2020) Economy › Government Finance & Budget › Union Budget process Official Key

Along with the Budget, the Finance Minister also places other documents before the Parliament which include The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by

Result
Your answer: —  ·  Correct: D
Explanation

The correct answer is Option 4. The presentation of the Macro-Economic Framework Statement is a statutory requirement under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.

The FRBM Act was enacted to institutionalize financial discipline and reduce India's fiscal deficit. Section 3 of the Act mandates that the Central Government must lay three specific statements before both Houses of Parliament along with the Annual Financial Statement:

  • The Macro-Economic Framework Statement
  • The Medium-Term Fiscal Policy Statement
  • The Fiscal Policy Strategy Statement

Regarding other options: Article 112 pertains to the Annual Financial Statement (Budget), while Article 110 defines Money Bills and Article 113 relates to the procedure for Estimates. These constitutional provisions do not mention the Macro-Economic Framework Statement. Similarly, it is not merely a parliamentary convention but a legal obligation created by the 2003 Act to ensure transparency in economic projections.

How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
74%
got it right
PROVENANCE & STUDY PATTERN
Guest preview
Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Along with the Budget, the Finance Minister also places other documents before the Parliament which include The Macro Economic Framework …
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 2.5/10 · 7.5/10
You're seeing a guest preview. The Verdict and first statement analysis are open. Login with Google to unlock all tabs.
Statement 1
Is the Macro-Economic Framework Statement presented with the Union Budget before Parliament mandated by a long-standing parliamentary convention?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"FRBM Act, 2003 stipulates that the Central Government shall lay in each financial year before both Houses of Parliament the following Statements of fiscal policy along with the Annual Financial Statement and Demands for Grants, namely: ... (b) Macro-economic Framework Statement."
Why this source?
  • Explicitly states the FRBM Act, 2003 requires the Central Government to lay the Macro-economic Framework Statement before both Houses each financial year.
  • Specifies the Statement must be laid along with the Annual Financial Statement and Demands for Grants, i.e., as part of budget-related parliamentary presentation.
Web source
Presence: 4/5
"The Macro-economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made thereunder."
Why this source?
  • States the Macro-Economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003.
  • Indicates the presentation is a statutory requirement under the FRBM Act and its rules rather than merely a parliamentary convention.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > vert 2020 \vert > p. 125
Strength: 3/5
“\vert 2020 \vert • 1. Along with the budget, the Finance Minister also places other documents before the Parliament, which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by • (a) Long-standing parliamentary convention.• (b) Article 112 and Article 110(1) of the Constitution of India.• (c) Article 113 of the Constitution of India.• (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003.”
Why relevant

States that the Macro-Economic Framework Statement is placed along with the budget and lists possible bases including 'long-standing parliamentary convention' as an option.

How to extend

A student could treat this as an explicit exam-style alternative and check which of the other listed legal sources (Articles, FRBM) are actually cited elsewhere to evaluate if convention alone is plausible.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
Strength: 5/5
“The finance minister shall review, on half-yearly basis, the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews.• 10.Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament.• 11.The Central Government may entrust the CAG of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.• 12.Central government shall lay, in each financial year, before both the houses of parliament, the following statements of fiscal policy along with the budget document: • (a) Medium Term Fiscal Policy Statement• (b) Fiscal Policy Strategy Statement• (c) Macroeconomic Framework Statement• (d) 'Medium-Term expenditure Framework Statement' should be laid in the session immediately following the session of the Parliament in which the budget has been presented)”
Why relevant

Explicitly quotes the FRBM Act requirement that the Central Government shall lay the Macroeconomic Framework Statement before both Houses of Parliament each financial year.

How to extend

A student can note this statutory mandate (FRBM Act 2003) and compare its date to any claim of a prior 'long-standing convention' to judge whether the practice is primarily statutory rather than merely conventional.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 253
Strength: 4/5
“The budget documents presented to the Parliament comprise of the following22a : | (i) Budget Speech | (ii) Annual Financial Statement | (iii) Demands for Grants | (iv) Finance Bill | (v) Statements mandated under the FRBM Act | (a) Macro-Economic Framework Statement | (b) Fiscal Policy Strategy Statement | (c) Medium Term Fiscal Policy Statement | (vi) Expenditure Budget | (vii) Receipts Budget | (viii) Expenditure Profile | (ix) Memorandum Explaining the Provisions in the Finance Bill | (x) Budget at a Glance | (xi) Outcome Budget (Output Outcome Monitoring Framework) | (xii) Key (xiv) Key to Budget Documents Earlier, the Economic Survey also used to be presented to the Parliament along with the budget.”
Why relevant

Lists the Macro-Economic Framework Statement as one of the 'Statements mandated under the FRBM Act' among budget documents presented to Parliament.

How to extend

A student could use this pattern (budget documents being categorized as 'mandated under the FRBM Act') to infer that presentation is tied to statutory requirements rather than only to unwritten parliamentary custom.

Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Main Features > p. 82
Strength: 4/5
“The central government to lay before both Houses of Parliament three statements – Medium-term Fiscal Policy Statement, The Fiscal Policy Strategy Statement, The Macroeconomic Framework Statement along with the Annual Financial Statement.• 8. Quarterly review of the trends in receipts and expenditure in relation to the budget be placed before both Houses of Parliament. The act applies to the central government. However, 26 states have already enacted fiscal responsibility legislations which have made the rule based fiscal reform programme of the government more broad based. Although the government has emphasised that the FRBMA is an important instituional mechanism to ensure fiscal prudence and support macro economic balance there have been fears that welfare expenditure may get reduced to meet the targets mandated by the Act.”
Why relevant

States that the central government is to lay three named statements (including the Macroeconomic Framework Statement) before both Houses along with the Annual Financial Statement, and links this to the Act's application.

How to extend

A student could combine this with the knowledge that FRBM is a statute to question whether the practice originates from legislation, thereby reducing likelihood that it's solely a long-standing convention.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.2 Budget Procedure > p. 148
Strength: 3/5
“The budget is presented in the parliament on the first working day of February at 11.00 am. The General Budget is presented in Lok Sabha by the finance minister and he/she makes a speech introducing the budget and after the speech it is presented in the Rajya Sabha. No discussion on Budget takes place on the day it is presented to the parliament. The main budget documents presented to parliament comprise, besides the Finance Minister Budget Speech, of the following: • Annual Financial Statement• Demand for Grants• Appropriation Bill• Finance Bill Budget is discussed in two stages - the general discussion followed by detailed discussion.”
Why relevant

Describes the formal routine and timing for presenting the budget and main budget documents to Parliament (first working day of February, FM speech, etc.).

How to extend

A student could use this procedural pattern to investigate when specific documents (like the Macro-Economic Framework Statement) were first included in that formal presentation schedule—if inclusion dates coincide with FRBM enactment, it supports a statutory rather than purely conventional origin.

Statement 2
Do Article 112 and Article 110(1) of the Constitution of India mandate presentation of the Macro-Economic Framework Statement with the Union Budget before Parliament?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The Macro-Economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made thereunder."
Why this source?
  • Explicitly states how the Macro-Economic Framework Statement (MEFS) is presented to Parliament under the FRBM Act, not under Articles 112/110.
  • Shows the statutory source for MEFS presentation: Section 3 of the Fiscal Responsibility and Budget Management Act, 2003.
Web source
Presence: 5/5
"Macro-Economic Framework Statement The Macro-economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made thereunder."
Why this source?
  • Confirms that the MEFS is presented to Parliament under Section 3 of the FRBM Act.
  • Separately identifies a Finance Bill as a Money Bill under Article 110, distinguishing the Finance Bill/Article-110 linkage from the MEFS requirement.
Web source
Presence: 5/5
"Macro-Economic Framework Statement: As per the FRBM Act, the Macro-economic Framework Statement shall contain an assessment of the growth prospects of the economy with specification of underlying assumptions."
Why this source?
  • Reiterates that, as per the FRBM Act, the Macro-Economic Framework Statement is required and specifies its content and format.
  • Supports that the FRBM Act (not Articles 112/110) is the operative mandate for the MEFS.

Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > 5.1 GOVERNMENT BUDGET — MEANING AND ITS COMPONENTS > p. 66
Strength: 4/5
“There is a constitutional requirement in India (Article 112) to present before the Parliament a statement of estimated receipts and expenditures of the government in respect of every financial year which runs from 1 April to 31 March. This 'Annual Financial Statement' constitutes the main budget document of the government. Although the budget document relates to the receipts and expenditure of the government for a particular financial year, the impact of it will be there in subsequent years. There is a need therefore to have two accounts- those that relate to the current financial year only are included in the revenue account (also called revenue budget) and those that concern the assets and liabilities of the government into the capital account (also called capital budget).”
Why relevant

States that Article 112 constitutionally requires laying the 'Annual Financial Statement' (the budget) before Parliament, i.e. the Constitution prescribes what must be laid as the main budget document.

How to extend

A student could infer that because Article 112 names the Annual Financial Statement specifically, other documents (like the Macro-Economic Framework Statement) may need separate authority (statute or convention) rather than being covered by Article 112.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Constitutional Provisions > p. 251
Strength: 4/5
“f r 11 r The Constitution of India contains the following provisions with regard to the enactment of budget' 1. The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of estimated receipts and expenditure of the Government of India for that year (Article 112). • 2. No demand for a grant shall be made except on the recommendation of the President (Article 113). • 3. No money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law (Article 114). • 4. No money bill imposing tax shall be introduced in the Parliament except on the recommendation of the President, and such a bill shall not be introduced in the Rajya Sabha (Article 117). • 5.”
Why relevant

Summarizes constitutional provisions on the enactment of the budget and explicitly cites Article 112 as the provision requiring a statement of estimated receipts and expenditure.

How to extend

One can use this to check whether Article 112 mentions or implies additional documents; absence would suggest looking for other legal sources for the Macro-Economic Framework Statement requirement.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
Strength: 5/5
“The finance minister shall review, on half-yearly basis, the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews.• 10.Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament.• 11.The Central Government may entrust the CAG of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.• 12.Central government shall lay, in each financial year, before both the houses of parliament, the following statements of fiscal policy along with the budget document: • (a) Medium Term Fiscal Policy Statement• (b) Fiscal Policy Strategy Statement• (c) Macroeconomic Framework Statement• (d) 'Medium-Term expenditure Framework Statement' should be laid in the session immediately following the session of the Parliament in which the budget has been presented)”
Why relevant

Shows the Fiscal Responsibility and Budget Management (FRBM) Act (statute) requires laying specific fiscal statements — including the Macroeconomic Framework Statement — 'along with the budget document'.

How to extend

A student could contrast the FRBM statutory requirement with the constitutional text (Article 112) to judge whether the Macroeconomic Framework Statement's presentation is mandated by the Constitution or by statute.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > vert 2020 \vert > p. 125
Strength: 3/5
“\vert 2020 \vert • 1. Along with the budget, the Finance Minister also places other documents before the Parliament, which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by • (a) Long-standing parliamentary convention.• (b) Article 112 and Article 110(1) of the Constitution of India.• (c) Article 113 of the Constitution of India.• (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003.”
Why relevant

Presents a multiple-choice item that lists Article 112, Article 110(1), parliamentary convention, and FRBM Act as possible bases for why the Macro Economic Framework Statement is presented, indicating there is debate/confusion about the legal source.

How to extend

A student could treat this as an example showing competing claims and thus seek the actual texts of Article 110(1), Article 112 and the FRBM Act to resolve which specifically mandates the statement.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > BUDGET IN PARLIAMENT > p. 250
Strength: 3/5
“~ BUDGET IN PARLIAMENT The Constitution refers to the budget as the 'annual financial statement'. In other words, the term 'budget' has nowhere been used in the Constitution. It is the popular name for the 'annual financial statement' that has been dealt with in Article 112 of the Constitution. The budget is a statement of the estimated receipts and expenditure of the Government of India in a financial year, which begins on 1 April and ends on 31 March of the following year. In addition to the estima tes of receipts and expenditure, the budget contains certain other elements. Overall, the budge t contai ns the following: • Estimates of revenue and capital receipts; • Ways and means to raise the revenue;”
Why relevant

Explains that the Constitution refers to the budget as the 'annual financial statement' and lists the typical contents of the budget, implying the Constitution prescribes core budget content but not necessarily all ancillary statements.

How to extend

One could use this to check whether the Macro-Economic Framework Statement is listed among the 'typical contents' and, if not, infer it likely derives from statute or convention rather than Article 112.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements. Unlock full statement-level provenance with ExamRobot Pro.

Statement 3
Does Article 113 of the Constitution of India mandate presentation of the Macro-Economic Framework Statement with the Union Budget before Parliament?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"The Macro-Economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made thereunder."
Why this source?
  • Explicitly states the Macro-Economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003.
  • Shows the statement is mandated by the FRBM Act (statutory requirement), not by a specific Article of the Constitution.
Web source
Presence: 5/5
"FRBM Act, 2003 stipulates that the Central Government shall lay in each financial year before both Houses of Parliament the following Statements of fiscal policy ... (b) Macro-economic Framework Statement. As per Section 3 of FRBM Act, 2003, Government is required to lay Medium-term Expenditure Framework Statement (MTEF) before both Houses of Parliament, immediately following the session of Parliament in which the fiscal policy statements (the Medium Term Fiscal Policy Statement, the Macro-Economic Framework Statement) were laid."
Why this source?
  • States the FRBM Act, 2003 requires the Central Government to lay the Macro-economic Framework Statement before both Houses of Parliament each financial year.
  • Refers to Section 3 of the FRBM Act as the basis for laying related fiscal policy statements to Parliament, reinforcing the statutory (FRBM) source of the requirement.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
Strength: 5/5
“The finance minister shall review, on half-yearly basis, the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews.• 10.Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament.• 11.The Central Government may entrust the CAG of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.• 12.Central government shall lay, in each financial year, before both the houses of parliament, the following statements of fiscal policy along with the budget document: • (a) Medium Term Fiscal Policy Statement• (b) Fiscal Policy Strategy Statement• (c) Macroeconomic Framework Statement• (d) 'Medium-Term expenditure Framework Statement' should be laid in the session immediately following the session of the Parliament in which the budget has been presented)”
Why relevant

States that the FRBM Act requires the Central Government to lay the Macro-Economic Framework Statement before both Houses of Parliament along with the budget document.

How to extend

A student could infer that the requirement to present the Macro-Economic Framework Statement is statutory (FRBM) rather than necessarily constitutional, and check whether Article 113 contains such a procedural mandate.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 253
Strength: 4/5
“The budget documents presented to the Parliament comprise of the following22a : | (i) Budget Speech | (ii) Annual Financial Statement | (iii) Demands for Grants | (iv) Finance Bill | (v) Statements mandated under the FRBM Act | (a) Macro-Economic Framework Statement | (b) Fiscal Policy Strategy Statement | (c) Medium Term Fiscal Policy Statement | (vi) Expenditure Budget | (vii) Receipts Budget | (viii) Expenditure Profile | (ix) Memorandum Explaining the Provisions in the Finance Bill | (x) Budget at a Glance | (xi) Outcome Budget (Output Outcome Monitoring Framework) | (xii) Key (xiv) Key to Budget Documents Earlier, the Economic Survey also used to be presented to the Parliament along with the budget.”
Why relevant

Lists 'Statements mandated under the FRBM Act' (including Macro-Economic Framework Statement) as distinct items among budget documents placed before Parliament.

How to extend

A student can use this pattern to distinguish documents required by statute (FRBM) from documents required by specific constitutional articles like Article 112/113.

Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Constitutional Provisions > p. 251
Strength: 4/5
“f r 11 r The Constitution of India contains the following provisions with regard to the enactment of budget' 1. The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of estimated receipts and expenditure of the Government of India for that year (Article 112). • 2. No demand for a grant shall be made except on the recommendation of the President (Article 113). • 3. No money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law (Article 114). • 4. No money bill imposing tax shall be introduced in the Parliament except on the recommendation of the President, and such a bill shall not be introduced in the Rajya Sabha (Article 117). • 5.”
Why relevant

Summarizes constitutional provisions about the budget and states Article 113 deals with recommendation of the President for demands for grants (not listing presentation of other statements).

How to extend

One could contrast Article 113's subject-matter (recommendation for grants) with any text that would explicitly mandate presentation of documents, making it less likely that Article 113 enacts a presentation requirement.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > vert 2020 \vert > p. 125
Strength: 3/5
“\vert 2020 \vert • 1. Along with the budget, the Finance Minister also places other documents before the Parliament, which include 'The Macro Economic Framework Statement'. The aforesaid document is presented because this is mandated by • (a) Long-standing parliamentary convention.• (b) Article 112 and Article 110(1) of the Constitution of India.• (c) Article 113 of the Constitution of India.• (d) Provisions of the Fiscal Responsibility and Budget Management Act, 2003.”
Why relevant

Presents a multiple-choice framing that includes Article 112, Article 110(1), Article 113, and the FRBM Act as possible bases for presenting the Macro-Economic Framework Statement, indicating common uncertainty about constitutional vs statutory source.

How to extend

A student might use this to investigate each listed source (Article 112, 110(1), 113, FRBM) to see which explicitly mandates the statement, helping eliminate Article 113 if it lacks such text.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > BUDGET IN PARLIAMENT > p. 250
Strength: 3/5
“~ BUDGET IN PARLIAMENT The Constitution refers to the budget as the 'annual financial statement'. In other words, the term 'budget' has nowhere been used in the Constitution. It is the popular name for the 'annual financial statement' that has been dealt with in Article 112 of the Constitution. The budget is a statement of the estimated receipts and expenditure of the Government of India in a financial year, which begins on 1 April and ends on 31 March of the following year. In addition to the estima tes of receipts and expenditure, the budget contains certain other elements. Overall, the budge t contai ns the following: • Estimates of revenue and capital receipts; • Ways and means to raise the revenue;”
Why relevant

Explains that the Constitution refers to the 'annual financial statement' in Article 112 and that the budget contains additional elements, implying some budget documents have separate legal bases.

How to extend

A student could use this to check whether the Macro-Economic Framework Statement is part of the 'annual financial statement' under Article 112 or is instead provided for by other laws like FRBM, aiding assessment of Article 113's relevance.

Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements. Unlock full statement-level provenance with ExamRobot Pro.

Statement 4
Does the Fiscal Responsibility and Budget Management Act, 2003 mandate that the Macro-Economic Framework Statement be presented with the Union Budget before Parliament?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
Presence: 5/5
“The finance minister shall review, on half-yearly basis, the trends in receipts and expenditure in relation to the budget and place before both Houses of Parliament the outcome of such reviews.• 10.Except as provided under this Act, no deviation in meeting the obligations cast on the Central Government under this Act, shall be permissible without approval of Parliament.• 11.The Central Government may entrust the CAG of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.• 12.Central government shall lay, in each financial year, before both the houses of parliament, the following statements of fiscal policy along with the budget document: • (a) Medium Term Fiscal Policy Statement• (b) Fiscal Policy Strategy Statement• (c) Macroeconomic Framework Statement• (d) 'Medium-Term expenditure Framework Statement' should be laid in the session immediately following the session of the Parliament in which the budget has been presented)”
Why this source?
  • Explicitly requires the central government to lay, in each financial year, the Macroeconomic Framework Statement before both Houses of Parliament.
  • Specifies that these statements are to be laid 'along with the budget document', directly linking the statement to the Union Budget presentation.
  • Lists the Macroeconomic Framework Statement alongside the other FRBM-mandated fiscal statements, showing statutory obligation.
Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Main Features > p. 82
Presence: 5/5
“The central government to lay before both Houses of Parliament three statements – Medium-term Fiscal Policy Statement, The Fiscal Policy Strategy Statement, The Macroeconomic Framework Statement along with the Annual Financial Statement.• 8. Quarterly review of the trends in receipts and expenditure in relation to the budget be placed before both Houses of Parliament. The act applies to the central government. However, 26 states have already enacted fiscal responsibility legislations which have made the rule based fiscal reform programme of the government more broad based. Although the government has emphasised that the FRBMA is an important instituional mechanism to ensure fiscal prudence and support macro economic balance there have been fears that welfare expenditure may get reduced to meet the targets mandated by the Act.”
Why this source?
  • States the central government must lay three statements — including the Macroeconomic Framework Statement — before both Houses along with the Annual Financial Statement.
  • Frames the requirement as part of the FRBM Act's procedural mandates for budget presentation.
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 253
Presence: 5/5
“The budget documents presented to the Parliament comprise of the following22a : | (i) Budget Speech | (ii) Annual Financial Statement | (iii) Demands for Grants | (iv) Finance Bill | (v) Statements mandated under the FRBM Act | (a) Macro-Economic Framework Statement | (b) Fiscal Policy Strategy Statement | (c) Medium Term Fiscal Policy Statement | (vi) Expenditure Budget | (vii) Receipts Budget | (viii) Expenditure Profile | (ix) Memorandum Explaining the Provisions in the Finance Bill | (x) Budget at a Glance | (xi) Outcome Budget (Output Outcome Monitoring Framework) | (xii) Key (xiv) Key to Budget Documents Earlier, the Economic Survey also used to be presented to the Parliament along with the budget.”
Why this source?
  • Lists the Macro-Economic Framework Statement under 'Statements mandated under the FRBM Act' as a budget document presented to Parliament.
  • Treats FRBM statements as part of the formal set of documents that accompany the budget, reinforcing the mandated presentation.
Statement analysis

This statement analysis shows book citations, web sources and indirect clues. The first statement (S1) is open for preview.

Login with Google to unlock all statements. Unlock full statement-level provenance with ExamRobot Pro.

Pattern takeaway: The 'Constitutional vs. Statutory' swap is a recurring pattern. UPSC tests if you know that modern economic management tools (like fiscal targets) come from Acts of Parliament, not the original 1950 Constitution.
How you should have studied
  1. [THE VERDICT]: Sitter. Explicitly covered in NCERT Class XII Macroeconomics (Chapter 5) and standard Economy/Polity texts (Vivek Singh/Laxmikanth).
  2. [THE CONCEPTUAL TRIGGER]: The 'Budget Documents' roster. Distinguishing between Constitutional requirements (Annual Financial Statement) and Statutory requirements (FRBM statements).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'FRBM Trinity' laid WITH the Budget: 1. Macro-Economic Framework Statement, 2. Medium-Term Fiscal Policy Statement, 3. Fiscal Policy Strategy Statement. Contrast this with the 'Medium-Term Expenditure Framework' (MTEF), which is laid in the session *after* the Budget.
  4. [THE STRATEGIC METACOGNITION]: Whenever you study a government report or index, tag its 'Legal Parent'. Is it Constitutional (Art 112), Statutory (FRBM Act), or Executive (Economic Survey)? UPSC loves swapping these parents.
How to study

This tab shows concrete study steps: what to underline in books, how to map current affairs, and how to prepare for similar questions.

Login with Google to unlock study guidance. Available with ExamRobot Pro.

Concept hooks from this question
📌 Adjacent topic to master
S1
👉 FRBM Act mandates specific fiscal policy statements
💡 The insight

The Macro-Economic Framework Statement is one of the statements required to be laid before Parliament by the Fiscal Responsibility and Budget Management Act.

High-yield for questions on contemporary budget procedure and fiscal law: distinguishes statutory requirements (FRBM Act) from constitutional or conventional practices. Helps answer comparisons between legal mandates and conventions, and links to questions on fiscal accountability and budget transparency.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 253
🔗 Anchor: "Is the Macro-Economic Framework Statement presented with the Union Budget before..."
📌 Adjacent topic to master
S1
👉 Budget documents roster — where MES fits
💡 The insight

The Macro-Economic Framework Statement is listed among core budget documents presented to Parliament alongside other statements and the Annual Financial Statement.

Useful for questions about composition and sequencing of budget documents, parliamentary scrutiny of finance, and the role of different statements (policy vs. estimates). Enables targeting of 'which documents are presented' or 'which are statutory' type questions.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 253
  • Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Main Features > p. 82
🔗 Anchor: "Is the Macro-Economic Framework Statement presented with the Union Budget before..."
📌 Adjacent topic to master
S1
👉 Constitutional Annual Financial Statement vs statutory statements
💡 The insight

Article 112 requires the Annual Financial Statement (the Budget) to be laid before Parliament, whereas other policy statements are mandated by statute (FRBM Act).

Crucial for distinguishing constitutional provisions from statutory provisions in financial legislation topics. Helps tackle questions that probe sources of mandate (Constitution vs Parliament convention vs statute) and ties to legislative procedure and budgetary law.

📚 Reading List :
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 258
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
🔗 Anchor: "Is the Macro-Economic Framework Statement presented with the Union Budget before..."
📌 Adjacent topic to master
S2
👉 Article 112 — Annual Financial Statement (the Budget)
💡 The insight

Article 112 requires the President to lay before both Houses of Parliament the Annual Financial Statement (budget) of estimated receipts and expenditures for each financial year.

High-yield for constitutional provisions on budget process; helps answer questions about what the Constitution explicitly mandates versus what is supplementary. Links to parliamentary procedure, appropriation, and public finance topics, and enables distinctions between constitutional articles and legislative/statutory requirements.

📚 Reading List :
  • Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > 5.1 GOVERNMENT BUDGET — MEANING AND ITS COMPONENTS > p. 66
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 146
🔗 Anchor: "Do Article 112 and Article 110(1) of the Constitution of India mandate presentat..."
📌 Adjacent topic to master
S2
👉 FRBM Act 2003 requirement to lay the Macroeconomic Framework Statement with the budget
💡 The insight

The Fiscal Responsibility and Budget Management Act 2003 mandates that the Central Government lay the Macroeconomic Framework Statement before both Houses along with the budget document.

Essential for distinguishing statutory fiscal transparency obligations from constitutional ones; frequently examined in questions on fiscal management, budgetary procedures, and accountability. Useful for answering 'what must be laid with the budget' and for comparisons between law and constitutional text.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
🔗 Anchor: "Do Article 112 and Article 110(1) of the Constitution of India mandate presentat..."
📌 Adjacent topic to master
S2
👉 Constitutional mandate versus statutory requirement for budget documents
💡 The insight

The Constitution (Article 112) mandates the Annual Financial Statement, whereas additional statements like the Macroeconomic Framework Statement are required by statute (FRBM Act), not by Article 112 or Article 110(1).

Critical analytical concept for UPSC answers: allows clear separation of constitutional obligations from later legislative/administrative requirements. Enables structured answers on reform proposals, legal challenges, and parliamentary oversight of fiscal policy.

📚 Reading List :
  • Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > 5.1 GOVERNMENT BUDGET — MEANING AND ITS COMPONENTS > p. 66
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
🔗 Anchor: "Do Article 112 and Article 110(1) of the Constitution of India mandate presentat..."
📌 Adjacent topic to master
S3
👉 FRBM Act: mandatory fiscal statements with the budget
💡 The insight

The Fiscal Responsibility and Budget Management Act requires the government to lay a Macro‑Economic Framework Statement and related fiscal policy statements before both Houses along with the budget document.

High-yield: distinguishes statutory (FRBM) requirements from constitutional provisions; directly relevant to questions on what documents must accompany the Union Budget and on fiscal transparency reforms. Connects to budget process, Finance Ministry obligations, and legal vs constitutional mandates, enabling elimination-style answers in multiple-choice and mains questions.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.7 Fiscal Responsibility and Budget Management (FRBM) Act 2003 > p. 157
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 253
🔗 Anchor: "Does Article 113 of the Constitution of India mandate presentation of the Macro-..."
Micro-concepts

Discover the small, exam-centric ideas hidden in this question and where they appear in your books and notes.

Login with Google to unlock micro-concepts. Unlock micro-concepts with ExamRobot Pro.

🌑 The Hidden Trap

The Medium-Term Expenditure Framework (MTEF) Statement. Unlike the Macro-Economic Framework Statement, the MTEF is NOT presented *with* the Budget. It is mandated by the FRBM Act to be laid in the session *immediately following* the Budget session. This timing mismatch is a future trap.

⚡ Elimination Cheat Code

Linguistic Chronology Hack: The Constitution (1950) uses formal, archaic terms like 'Annual Financial Statement' or 'Demands for Grants'. 'Macro-Economic Framework' is modern, technocratic jargon (post-1991 reform era). Thus, it is unlikely to be in the original Articles (112/113) or an ancient convention. It points directly to a modern statute like the FRBM Act (2003).

🔗 Mains Connection

GS-3 (Government Budgeting) & GS-2 (Accountability): These documents are the legal instruments of 'Fiscal Transparency'. They bind the government to explain deviations from deficit targets, a crucial point for Mains answers on the efficacy of the FRBM Act or Fiscal Federalism.

The Vault

Access hidden traps, elimination shortcuts, and Mains connections that give you an edge on every question.

Login with Google to unlock The Vault. Unlock the Mentor's Vault with ExamRobot Pro.

✓ Thank you! We'll review this.

SIMILAR QUESTIONS

CDS-I · 2008 · Q110 Relevance score: 4.11

According to the provisions of the Fiscal Responsibility and Budget Management (FRBM). Act, 2003 and FRBM Rules, 2004, the Government is under obligation to present three statements before the Parliament along with the Annual Budget. Which one of the following is not one of them?

CDS-II · 2007 · Q111 Relevance score: 4.11

According to the provisions of the Fiscal Responsibility and Budget Management (FRBM). Act, 2003 and FRBM Rules, 2004, the Government is under obligation to present three statement s before the Parliament along with the Annual Budget. Which one of the following is not one of them?

IAS · 2012 · Q60 Relevance score: 2.21

Which of the following are the methods of Parliamentary control over public finance in India? 1. Placing Annual Financial Statement before the Parliament 2. Withdrawal of moneys from Consolidated Fund of India 3. Provisions of supplementary grants and vote-on-account 4. A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office 5. Introduction Finance Bill in the Parliament Select the correct answer using the codes given below:

IAS · 2024 · Q85 Relevance score: 1.22

With reference to Union Budget, consider the following statements : 1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament. 2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India. Which of the statements given above is/are correct ?

IAS · 2016 · Q56 Relevance score: -1.71

With reference to Financial Stability and Development Council', consider the following statements : 1. It is an organ of NITI Aayog. 2. It is headed by the Union Finance Minister. 3. It monitors macroprudential supervision of the economy. Which of the statements given above is/are correct?