Why in the News?
The Lok Sabha has passed the Demands for Grants of various Ministries for the financial year 2025-26, approving an expenditure of more than ₹50 lakh crore.
What are Demands for Grants?
- Demands for Grants refer to the expenditure estimates that require approval from the Lok Sabha under Article 113 of the Constitution of India.
- These demands are essentially requests for funds by different ministries to cover their respective expenditure needs.
- The Demands for Grants cover:
- Revenue expenditure: Routine expenses for the functioning of government.
- Capital expenditure: Investment-related spending, such as infrastructure and development projects.
- Grants to States/UTs: Funds allocated to state governments and Union Territories for various purposes.
- Loans & advances: Amounts lent to other entities or bodies.
- Each ministry or department presents its own demand for grants. Larger ministries may have multiple demands depending on the scope of their activities.
- Types of Expenditures in Demands for Grants:
- Voted expenditure: It refers to the part of the budget that requires approval from the Lok Sabha. This expenditure can be debated and voted on by members of the House.
- Charged expenditure: It includes items like the President’s salary, judges’ salaries, debt servicing, and other such payments. This expenditure does not require a vote and is automatically passed.
- Voting on Demands for Grants:
- Exclusivity of Lok Sabha: Only the Lok Sabha has the power to vote on Demands for Grants.
- Voting Process: Voting applies only to votable expenditure, with each demand voted on separately.
- Guillotine Process: If time runs out for discussion, the Speaker applies the guillotine, automatically approving remaining demands.
Constitutional Provisions on Demands for Grants
- Article 113: Requires the President’s recommendation before any demand for a grant can be made.
- Article 114: Money cannot be withdrawn from the Consolidated Fund of India without parliamentary approval.
- Article 115: Allows supplementary grants if the budget is insufficient.
- Article 116: Provides for Vote on Account and Vote of Credit if the budget is not passed before the start of the financial year.
| [UPSC 2024] Consider the following statements regarding the financial procedure in the Indian Parliament: 1. The Appropriation Bill must be passed by the Lok Sabha after the Demands for Grants are voted upon. 2. At the Union level, no demand for a grant can be made except on the recommendation of the President of India.Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
