Explanation:

1st option is correct. The Union Budget of India, also referred to as the Annual financial statement in the Article 112 of the Constitution of India,[1] is the annual budget of the Republic of India.

The Government presents it on the first day of February so that it could be materialized before the commencement of new financial year in April. Till 2016 it was presented on the last working day of February by the Finance Minister of India in Parliament. The budget, which is presented by means of the Finance bill and the Appropriation bill has to be passed by both the Houses before it can come into effect from April 1, the start of India's financial year.