Demands for Grants (What is it?)
- Demands for Grants refer to proposals placed before the Lok Sabha seeking approval for expenditure from the Consolidated Fund of India.
- They form an essential part of the Union Budget and enable Parliament to exercise financial control over the executive.
- Article 113 of the Constitution governs the parliamentary procedure relating to Demands for Grants.
- Each Ministry or Department generally presents a separate demand for grants.
Key Constitutional Provisions
- Article 112: Annual Financial Statement (Union Budget).
- Article 113: Procedure in Parliament with respect to Demands for Grants.
- Article 114: Appropriation Bills.
- Article 115: Supplementary, additional or excess grants.
- Article 116: Votes on account, votes of credit and exceptional grants.
- Article 117: Special provisions relating to Financial Bills.
Key Features of Demands for Grants
- Lok Sabha’s Authority: Demands for Grants are voted exclusively by the Lok Sabha; the Rajya Sabha cannot vote on them.
- Presidential Recommendation: No demand for a grant can be made except on the recommendation of the President.
- Voted Expenditure: Expenditure requiring parliamentary approval is presented as Demands for Grants.
- Charged Expenditure: Expenditure charged on the Consolidated Fund of India is not submitted to vote, although it can be discussed.
- Approval: The Lok Sabha may approve, reject or reduce a demand for grants.
Important Parliamentary Procedures
1. Cut Motions
Members of the Lok Sabha can move cut motions to oppose or reduce demands for grants.
- Policy Cut: Seeks to reduce the demand to ₹1, expressing disapproval of the underlying policy.
- Economy Cut: Seeks to reduce expenditure by a specified amount.
- Token Cut: Seeks to reduce the demand by ₹100 to highlight a specific grievance.
2. Guillotine
- The Speaker puts all outstanding Demands for Grants to vote on the last allotted day, irrespective of whether they have been discussed.
- Ensures completion of the budgetary process within the stipulated parliamentary schedule.
3. Appropriation Bill
- After Demands for Grants are voted upon, an Appropriation Bill is introduced under Article 114.
- It authorises withdrawal of money from the Consolidated Fund of India to meet approved expenditure, including charged expenditure.
Conclusion
Demands for Grants are a vital instrument of legislative control over the public purse. Strengthening parliamentary scrutiny and committee examination is essential to ensure fiscal accountability and efficient public expenditure.
| This Concept has been discussed in the following article: Legislative Councils in India: Role, Composition, Powers and Reforms |