(1) the Parliament Explanation: Legislative prerogative over taxation, legislative control over expenditure and executive initiative in financial matters are some of the fundamental principles of the system of Parliamentary financial control. There are specific provisions in the Constitution of India incorporating these tenets. For example, article 265 provides that ‘no tax shall be levied or collected except by authority of law’ no expenditure can be incurred except with the authorisation of the Legislature (article 266); and President shall, in respect of every financial year, cause to be laid before Parliament, Annual Financial Statement (article 112).