CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020
The Central Government wants a Social Security Organisation to administer another social security scheme and bear the cost. Under the Code on Social Security, 2020, which statement is correct?
The Central Government may assign additional functions by notification and provide that it bears the expenditure. The Organisation incurs that expenditure only after the Central Government's prior approval. No parliamentary resolution is needed, and the Organisation need not fund it itself.
- AIt may do so by notification, and the expenditure may be borne by the Central Government, made by the Organisation after prior approval of the Central GovernmentCorrect
- BIt must first obtain Parliament's resolution for each such assignment
- CThe Organisation must meet the cost from its own funds
- DOnly a State Government may assign such additional functions
Explanation
Section 13 lets the Central Government by notification assign additional functions, including administration of another Act or scheme. It may provide that the expenditure is borne by the Central Government, and the Organisation spends only after prior approval of the Central Government. No parliamentary resolution is required, and the State Government has no such power.
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