In India, the final authority to sanction the expenditure of public money lies with the Union Parliament. This is a fundamental principle of the Indian democratic system and financial governance.

The process works as follows:

Step 1: The government, led by the Prime Minister and the Finance Minister, prepares the Annual Financial Statement, commonly known as the Union Budget. This document details the estimated receipts and expenditures for the upcoming financial year.

Step 2: The President of India, on the advice of the Council of Ministers, presents this budget to the Parliament.

Step 3: The Parliament, which consists of the Lok Sabha (House of the People) and the Rajya Sabha (Council of States), scrutinizes the proposed expenditures. The Lok Sabha has the primary power in financial matters.

Step 4: The Parliament discusses and votes on the "Demands for Grants" from various ministries. No tax can be levied, and no money can be spent from the Consolidated Fund of India without the Parliament's approval.

Final Answer: Therefore, the Union Parliament is the ultimate authority that grants this approval, making it the final sanctioning body for public expenditure.

Related Topics

Consolidated Fund of India: This is the most important government account. All revenues received, loans raised, and money received in repayment of loans by the Government of India are credited into this fund. All legally authorized payments are made from this fund.

Role of the President: While the President is the formal head of the state and gives assent to the Appropriation Bill (which allows the withdrawal of money from the Consolidated Fund), this is done on the advice of the Parliament. The President does not have independent power to sanction expenditure.

Role of the Executive: The Prime Minister and the Finance Minister are part of the executive. They propose the budget, but they cannot spend the money without the legislature's (Parliament's) approval. This ensures a system of checks and balances.

Key Formulae/Concepts

While there are no mathematical formulae for this concept, the constitutional provisions are key:

Article 266: Establishes the Consolidated Fund of India.

Article 112: Mandates the President to cause the Annual Financial Statement (Budget) to be laid before Parliament.

Article 114: States that no money can be withdrawn from the Consolidated Fund of India except under appropriation made by law (i.e., passed by Parliament).