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If a budget is defeated in the legislature of a state then
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- The Finance Minister alone has to resign
- The Finance Minister concerned has to be suspended
- The council of Ministers along with the Chief Minister has to resign
- Reelection have to be ordered
Correct Option: C
If the state legislature refuses to pass annual budget, then it will mean the government of the day has lost the faith of the legislature, i.e. it does not have majority of the legislature. In such a scenario, the council of ministers along with the Chief Minister has to resign.