The Uttarakhand state budget and its passage could turn out to be a major constitutional crisis for the Modi government, as the assembly speaker had not certified that it has been passed before the House was dissolved and the state brought under President's rule.


Before emplaning for Sydney, Union Finance Minister Arun Jaitley instructed Finance Secretary Rajan Wattal to ensure that the state budget is prepared by the Union government, and authorised his MoS Jayanta Sinha to sign the budget papers.


After the Union Cabinet approves it in its meeting on Wednesday, Governor Dr KK Paul's salary and that of the state government employees will be released. A formal communique will also be put up to the President for his assent to the Uttarakhand budget.