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?

Answer: C. Both statements are correct. Statement 1 is CORRECT. The Annual Financial Statement (Budget) is laid before both Houses of Parliament under Article 112 of the Constitution. The Finance Minister presents the Budget on behalf of the President of India (functionally the Prime Minister and Council of Ministers). Statement 2 is CORRECT. Article 113(3) of the Constitution specifies that no demand for a grant shall be made except on the recommendation of the President of India. The President's recommendation is a constitutional precondition for demands for grants in the Lok Sabha. This is part of the financial executive privilege. Both statements correctly describe constitutional procedure for the Union Budget. Source: Articles 112 and 113 of the Constitution / NCERT Class 11 Indian Constitution at Work Ch 5 (Legislature) / Budget Manual Ministry of Finance.