With reference to Union Budget, consider the following statements:

1. The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament.

2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India.

Which of the statements given above is/are correct?

The correct option is 2 only.

Let us analyze the statements step-by-step to understand why statement 1 is incorrect and statement 2 is correct:

Analysis of Statement 1:
According to Article 112 of the Constitution of India, the President of India shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, referred to as the "Annual Financial Statement" (Union Budget).
The Union Finance Minister lays the Annual Financial Statement before both the Houses of Parliament on behalf of the President of India, and not the Prime Minister. Therefore, statement 1 is incorrect.

Analysis of Statement 2:
According to Article 113(3) of the Constitution of India, no demand for a grant shall be made except on the recommendation of the President. This is a crucial constitutional safeguard ensuring that the power to demand money from the public treasury lies strictly under executive initiative recommended by the President. Therefore, statement 2 is correct.