2016-03-01
The Significance of Finance Minister’s Budget speech is that, it gives the purpose and proposals of the introductions, deletions and amendments to the existing statutes. The financial enactments can neither be static nor be rigid. It not only has to be dynamic and flexible but also be sensitive to interpretations that either lead to unintended hardship or be open to mischief. The purpose of Budget is to garner finances not only to run the country but also maintain financial stability and improve the scope of development by paving path for prosperity.
The Finance Minister gives the overall financial scenario, outlay and proposals to bring in the money for any additional liabilities. Areas where special attention are required are identified and in order to encourage people to invest in those area exemptions or deductions are offered from their taxable incomes, so that the government need not take the task collecting and investing in those areas. The movement of funds is gross and direct to the projects rather than net and indirect. This not only saves the time and money of the machinery but also specific in its application.
It is therefore imperative that the Finance Minister’s Budget speech is heard and understood in the right perspective rather than in filtered mode and in isolation
The drafting of the bill is done with utmost care and caution to give effect to the interpretation of the intention of the legislature. However the language has got its own handicap and leaves the words to be interpreted in a manner to counter the intentions.
It not possible for the courts to vet the legislation before it is passed. In fact some of the amendments have their genesis to the legal interpretation by the courts, which normally has a source based on facts and circumstances unique to the particular case.
There is no uniformity in the legal interpretation which is the precise reason for the matter to be taken to various appellate levels. The enactments have to be seen from both angles of letter and spirit considering the fact and circumstances.
It would be ideal to have a team of judiciary executive and the legislature to evolve a draft bill. Experiments have also been made to present a draft bill and call for opinions from various forums, bodies and public, but this system also failed to have desired results as very often the minds would not meet at ground level to serve the purpose of legislation. If too much importance will be given to legality, the drafting will become so complicated and may only become a literary piece fit only in books that it would be very difficult for common man to understand what the law is.
It is not out of place to mention that the apex court has taken into account the fact that the object and purpose of the particular provisions introduced by the finance Bill can be relied upon while deciding the issues, as held in the case of K.P. Varghese vs ITO [TS-11-SC-1981-O], Kerala State Industrial Development Corporation Ltd. v. CIT [TS-5029-SC-2002-O] and Sole Trustee, Loka Shikshana Trust v. CIT [TS-5035-SC-1975-O]
It has also been held by the apex court in the case of Deputy CTO v. Sha Sukraj Peerajee [ AIR 1968 SC 67, 70] that where particular date of coming into effect of a provision in the act not been expressed, in view of the specific provisions of sections 5(1) of the Madras General Clauses Act , 1891, the Madras General Sales Tax (Third Amendment) Act, 1956, the same comes into operation on the day on which assent thereto of the Governor was first published in the Official Gazette and not on the day it received the assent of the Governor.
In other words the significance of Finance minister’s speech is one of the sources to determine the intention of the legislature
The Finance Ministers with legal background present the budget with these impediments. There is a limit to imagine the contingencies but the intentions are paramount. Let us cross the bridge when it comes.