CUT MOTION - Tax Ninja's Word of the Week

Continuing the saga of Budget Month, our word of the week is Cut Motion.

During the discussion on the Budget in the Parliament, the Parliament has the authority to check the expenditure of the government and can decide to deny or make changes to the demands. If the Parliament decides to reduce the amount of the demand, then it launches a Cut Motion.
Cut Motion can be of three types:

• Policy cut motion: Under this motion demand is being reduced to Re. 1 so that it implies only to the disapproval of the policy underlying a demand.
• Economy cut motion: Economy cut is raised in order to reduce demand in grants by a specified amount. This doesn't signifies in disagreement with policy.
• Token cut motion: As the name suggests, it reduces the demand in grants by Rs. 100 to ventilate a specific grievance that lies within the purview of responsibilities of the GoI.

Interestingly, if a cut motion is adopted by parliament and the government does not have the numbers, it is obliged to resign as per rules of the lok sabha.

Stay Positive, Test Negative ;)

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