Piloting the Appropriation Bill, Finance Minister Arun Jaitley said Parliament has to pass the bill "irrespective of what happens tomorrow" as it had made provisions for expenditure in the state since April 1.
Congress, whose government led by Harish Rawat had been dismissed in March, staged a walkout to protest the government action of piloting the bill. The bill was passed by voice vote in its absence.
Responding to criticism by various parties for imposing the President's Rule in Uttarakhand, Jaitley put up a strong defence, arguing that the state would have otherwise plunged into a constitutional crisis.
Though he agreed with views of several members that the decisions of Speakers could not be a subject of judicial approval, he wondered what will happen if a Speaker declared the majority as minority and vice-versa as was done by, according to him, by the Uttarakhand Assembly Speaker.
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"The rule is floor test. What if a Speaker refuses to test the floor? What if a Speaker says I will change the characteristic of the floor and then test it?... The majority failed the budget but the Speaker passed," he said defending the imposition of the President's rule.
"Constitution envisages the rule by majority not rule by manipulative majority," he said and then later wondered if democracy will be held to ransom by such a a malafide.
Congress leader Mallikarjun Kharge accused the government of "murdering" democracy and the constitution as he led a walkout by his party.
including the Bommai judgement, and that courts have shown tendencies to be "carried by times".
While moving the Appropriation Bill for consideration, Jaitley said its passage will not have any bearing on the Vote of Confidence which will take place in the assembly tomorrow.
The Vote of Confidence in the state assembly can either restore the existing government, establish a new government or result in continuation of the President's rule, he said.
Jaitley said the state government, current or a new one, would be free to come out with its own budget as the Appropriation Bill seeks funds for only four months of the current fiscal.
Under the order of the Supreme Court, the President Rule will be suspended for two hours tomorrow in Uttarakhand to allow Harish Rawat government to seek vote of confidence in the state assembly.