The budget session had entered a 39-day recess from March 16.
The government today recommended to the President, cutting short the Budget session in both houses of Parliament to allow for release of funds for Uttarakhand which was put under presidents rule on March 27
Union Parliament Affairs Minister M Venkaiah Naidu met President Pranab Mukherjee and conveyed the decision of the Cabinet Committee on Parliamentary Affairs or CCPA.
The budget session had entered a 39-day recess from March 16. The government will need to issue an ordinance to release the funds, which cannot be done if Parliament is "in session" ( parlisment session is considered on even if there is a recess) . Now, the govt is expected to call for a fresh session likely to begin from April 25 to make up for the phase two of budget session
A senior minister in the government said, "a decision to end the first phase was taken due to the extraordinary situation arising out of the imposition of President's rule in Uttarakhand. The second half will now take place as a frrsh session not the continuation of the budget session."
The Centre had imposed President's rule in the state on Sunday. While the speaker of the state assembly said the Appropriation Bill - which allows the state to draw money to run the government (pay salaries and bear other expenses) from the Consolidated funds of India, governor KK Paul's report had put a question mark over whether the bill was passed by following the correct procedure.
With No clarity on the passing of the crucial bread and butter bill, the state could have lost the constitutional power to draw from the consolidated fund.
Also, if Parliament is in session any funds for a state under President's rule need parliamentary sanction. But, with the budget session resuming from April 25, Uttarakhand would have gone without central funds from April 1 to April 25, leading to a possible constitutional and financial crisis.
Sources say Mr Naidu explained this constitutional technicality to President Mukherjee while seeking his stamp on proroguing the two houses. Referring to the governor's report, Mr Naidu is also said to have explained the circumstances under which the Appropriation Bill was passed 'improperly' on March 18 in the state assembly.