When the annual Union Budget is not passed by the Lok Sabha, it signifies a lack of confidence in the government, as the budget is a crucial instrument for financial governance and public policy implementation. In such a scenario, the Prime Minister and the Council of Ministers must resign collectively, as their ability to govern is contingent on the legislative support of the Lok Sabha. This reflects the principles of parliamentary democracy in India, wherein the executive derives its authority from the legislature, and failure to pass the budget can lead to a loss of mandate, necessitating accountability through resignation.