With reference to the Union Budget consider the following statements Statement I The Union Finance M...........

Indian Economic System Planning in India

With reference to the Union Budget, consider the following statements

Statement I: The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament.
Statement II: At the Union level, no demand for a grant can be made except on the recommendation of the President of India.

Which one of the following is correct in respect of the above statements?

Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I.

Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-I.

Statement-I is correct, but Statement-II is incorrect.

Statement-I is incorrect, but Statement-II is correct.

Statement 1 is incorrect. Article 112 of the Constitution says that the President of India (not the Prime Minister of India) shall in respect of every financial year cause to be laid before both the Houses of Parliament an “annual financial statement”. So, the finance minister lays the budget in the Parliament on behalf of the President.
Statement 2 is correct. Article 113 says that no demand for a grant shall be made except on the recommendation of the President.

Annual financial statement

Annual Financial Statement distinguishes the expenditure on revenue account from the expenditure on other accounts, as mandated in the Constitution.
Revenue and capital sections together form the Union Budget, so the Annual Financial Statement is basically the Budget of the government.

Hence option 4th is correct.