India is a democratic republic. The Parliament is the supreme body. All important decisions regarding the country are taken here. The government of the country is formed by the Parliament. It is the supreme body to direct the working of the government. All matters of policy are decided by the government. The Indian Parliament comprises of two houses, viz. the Lok Sabha and the Rajya Sabha. The members of the Lok Sabha are elected directly by the people. The people cast their vote and elect representatives for the Lok Sabha. Their term is for five years. The members of Rajya Sabha are elected by the legislatures of the state. Their term is five years but one third of the members of Rajya Sabha retire by rotation after every two years. All the laws of the country are made by the Parliament. In the first instance, Lok Sabha passes the Nile which become law after going through the Rajya Sabha and after receiving consent of the President. Thus, Parliament is the supreme law-making body of the country. The budget of the country is also passed by the Parliament. No taxes can be levied unless these are approved by the Parliament. The democratic rights of the people are guaranteed by the Parliament. It acts according to the constitution of India.