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Demands for Grants

Demands for Grants

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