Official Answer Key & Detailed Solution
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Correct Answer: Option (A) — 1, 2, 3 and 5 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is correct: Article 112 requires the President to cause to be laid before both Houses of Parliament the Annual Financial Statement (Budget).
Statement 2 is correct: Article 114 mandates that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law (Appropriation Act).
Statement 3 is correct: Parliament exercises control through approving Supplementary Grants (Article 115) and Votes on Account (Article 116).
Statement 4 is incorrect: India does not have an institutionalized 'Parliamentary Budget Office' conducting statutory mid-year macroeconomic forecast reviews.
Statement 5 is correct: The Finance Bill gives effect to financial/tax proposals of the government and requires Parliamentary enactment.
India has no Parliamentary Budget Office (PBO), which is an institution found in countries like the USA/UK. Eliminating statement 4 instantly leads to (a).
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