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Type: Prelims Only

  • Festivals, Dances, Theatre, Literature, Art in News

    Revival of Vikramshila University

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Vikramshila University

    Why in the News?

    A decade after the resurgence of Nalanda University, the Government of Bihar is now focusing on the revival of Vikramshila University.

    About Vikramshila University

    • Vikramshila University was founded by King Dharmapala of the Pala Dynasty in the 8th-9th century AD in Bhagalpur district, Bihar, near the Ganges River.
    • It was established to address the decline in academic standards at Nalanda University.
    • The university specialized in Tantric Buddhism and Vajrayana Buddhism. Subjects taught included philosophy, grammar, metaphysics, logic, and tantras.
    • Notable scholars like Atisa Dipankara and Naropa were associated with Vikramshila.
    • It housed over 1,000 students and employed more than 100 teachers.
      • The university had 208 monastic cells, where monks studied and meditated.
    • Administration was managed by a Kulpati, or Mahasthavir, overseeing both academics and operations.
    • Key Features:
      • The university’s iconic cruciform brick stupa stood at 15 meters.
      • It also had a library with a unique cooling system to preserve manuscripts.
      • The architecture included a square layout with gates at four cardinal directions and surrounding votive stupas.
    • Decline and Destruction:
      • It thrived for about 400 years before being destroyed by Muhammad Bakhtiyar Khalji in 1193 AD.
      • The decline was due to the rise of Hinduism, the fall of Buddhism, and foreign invasions.

    Cultural Significance of Vikramshila University

    • Vikramshila was a major centre for Tantric and Vajrayana Buddhism, focusing on esoteric practices and rituals.
    • The Cakrasamvara Tantra was developed here, with scholars like Buddhajnanapada contributing to its spread.
    • The teachings from Vikramshila spread Buddhism across the Himalayas, Central Asia, and the Far East.
    • Vikramshila represented the zenith of Buddhist scholarship in India and contributed significantly to Buddhist texts, some of which survived through Tibetan manuscripts.
    [UPSC 1998] Which of the following pairs are correctly matched?

    I. Lothal: Ancient dockyard

    II. Sarnath: First Sermon of Buddha

    III. Rajgir: Lion capital of Asoka

    IV. Nalanda: Great seat of Buddhist learning

    Select the correct answer using the codes given below:

    (a) I, II, III and IV (b) III and IV (c) I, II and IV (d) I and II

     

  • Banking Sector Reforms

    RBI revises Priority Sector Lending (PSL) guidelines

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Priority Sector Lending (PSL)

    Why in the News?

    The RBI has issued revised guidelines for Priority Sector Lending (PSL), effective from April 1, 2025, to improve the targeting of bank credit to key sectors of the economy.

    About Priority Sector Lending (PSL)

    What is it?
    • PSL refers to the portion of bank lending that must be directed to specific sectors identified as priorities for national development.
    • The RBI mandates that banks must allocate a specified portion of their credit to these sectors to ensure inclusive growth.

    Origin of PSL:

    • PSL was introduced in India in the late 1960s.
    • The term “priority sector” was first used in 1967 by Morarji Desai, then Deputy Prime Minister, and it led to legislative measures for social control over banks.
    • In 1972, the RBI formally defined priority sectors, focusing initially on agriculture and small-scale industries.
    Which Banks are Covered Under PSL? 1. Domestic Scheduled Commercial Banks, Cooperative Banks, and Foreign Banks: 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBSE), whichever is higher.

    2. Small Finance Banks and Regional Rural Banks (RRBs): 75% of ANBC or CEOBSE, whichever is higher.

    3. Payment Banks: NOT subject to PSL targets.

    Priority Sector Categories • Agriculture • Micro, Small, and Medium Enterprises (MSMEs) • Export Credit • Education • Housing • Social Infrastructure • Renewable Energy

    • Others, including Scheduled Castes, Scheduled Tribes, and Persons with Disabilities.

    • Micro Finance Institutions (MFIs) offering loans to individuals and Self-Help Groups (SHGs) are also eligible for PSL classification.

    Consequences of Failing to Meet PSL Norms 1. Investment in Rural Infrastructure Development Fund (RIDF): Banks falling short of PSL targets may be required to invest in the Rural Infrastructure Development Fund (RIDF), managed by NABARD, or other designated funds like those managed by SIDBI and NHB.

    2. Purchase of PSL Certificates: Banks can purchase Priority Sector Lending Certificates (PSLCs) to meet their PSL targets.

    Priority Sector Lending Certificates (PSLCs)
    • Tradable certificates issued against priority sector loans by banks.
    • Banks can purchase PSLCs to meet PSL targets if they fall short, while incentivizing surplus banks to lend more to these sectors.

    Revised PSL Guidelines for 2025:

    • Revised PSL guidelines for 2025 will enhance the targeting of bank credit to priority sectors.
    • Loan limits for housing have been increased, with differentiated limits based on population size: ₹50 lakh (population ≥ 50 lakh), ₹45 lakh (population 10-50 lakh), and ₹35 lakh (population < 10 lakh).
    • Renewable energy loans: Up to ₹35 crore for power generators and public utilities, and ₹10 lakh for individual households.
    • Urban Cooperative Banks (UCBs) have a revised PSL target of 60% of Adjusted Net Bank Credit (ANBC).
    • Weaker Section borrowers expanded and the cap on loans to individual women beneficiaries has been removed.
    [UPSC 2012] The basic aim of Lead Bank Scheme is that the –

    (a) big banks should try to open offices in each district

    (b) there should be stiff competition among the various nationalized banks

    (c) individual banks should adopt particular districts for intensive development

    (d) all the banks should make intensive efforts to mobilize deposits

     

  • Differentiated Banks – Payment Banks, Small Finance Banks, etc.

    NPCI Launches BHIM 3.0 with Enhanced Features

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: BHIM 3.0

    Why in the News?

    NPCI BHIM Services Ltd. (NBSL), a subsidiary of the National Payments Corporation of India (NPCI), launched BHIM 3.0 with new features aimed at enhancing the user experience and providing new offerings for businesses and banks.

    About BHIM (Bharat Interface for Money):

    • BHIM is a mobile payment app developed by NPCI, based on the Unified Payments Interface (UPI), aimed at promoting cashless transactions and digital payments directly through banks.
    • Launched on December 30, 2016, BHIM facilitates instant money transfers between over 170 member banks using IMPS infrastructure.
    • Unlike mobile wallets, BHIM transfers money directly between bank accounts, ensuring quick transactions at any time, including holidays.
    • BHIM now supports Aadhaar-based authentication for easier digital payments.
    • BHIM is available in more than 20 Indian languages and is designed to work effectively in areas with low or unstable internet connectivity.
    • BHIM employs a robust three-factor authentication (3FA) process to ensure the security of transactions:
      1. Device ID and Mobile Number: The app binds with the user’s device ID and mobile number to verify the device.
      2. Bank Account Link: Users must sync their bank account (UPI-enabled or non-UPI-enabled) to the app for transactions.
      3. UPI PIN: A unique UPI PIN is required for completing transactions, which adds an extra layer of security.
    • NPCI does not charge any fee for transactions between ₹1 and ₹100,000.
      • Banks may charge fees for UPI or IMPS transfers, but there is no official information on BHIM-specific charges.

    Key Features of BHIM 3.0

    • Split Expenses: Users can now divide bills for shared expenses (e.g., rent, dining, group purchases) and settle payments instantly.
    • Family Mode: Users can onboard family members, track shared expenses, and assign specific payments for better financial management.
    • Spends Analytics: A new dashboard provides a detailed breakdown of monthly expenses, automatically categorizing them for easier budgeting.
    • Action Needed Alerts: BHIM 3.0 includes reminders for pending bills, activation of UPI Lite, and low Lite balance alerts to help users stay updated.
    • BHIM Vega: This feature allows merchants to accept in-app payments directly within the BHIM app, streamlining transactions without needing third-party apps.
    [UPSC 2018] With reference to digital payments, consider the following statements:

    1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.

    2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

    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

     

  • Tax Reforms

    Govt proposes to abolish Equalization Levy

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Equalization Levy

    Why in the News?

    The Centre is considering the withdrawal of the 6% Equalization Levy on online advertisement services provided by offshore digital economy firms to Indian businesses.

    What is Equalization Levy?

    • The Equalization Levy was introduced in 2016 under Section 165A of the Finance Act, primarily to tax digital transactions conducted by foreign e-commerce companies with Indian businesses.
    • It was designed to ensure that foreign companies, particularly in the digital economy, pay taxes for benefiting from Indian markets without a physical presence in the country.
    • It was primarily aimed at business-to-business (B2B) transactions, which is why it is often referred to as the “Google Tax”.
    • The levy mechanism involves withholding the tax at the time of payment made by the Indian service recipient to a non-resident service provider.
    • The annual payment threshold for the levy is ₹1,00,000 for a single service provider in a financial year.
    • Services covered under the levy:
      • Online advertisement services (effective from June 1, 2016).
      • Provision of digital advertising space or sale of goods to Indian residents (effective from April 1, 2020).
    • Tax Rates:
      • 6% of the gross consideration is levied on online advertisement services.
      • 2% of the gross consideration is levied on e-commerce transactions like the sale of goods or services.
    • Exclusions:
      • The levy does not apply if the non-resident has a permanent office in India related to the service.
      • The payment for the service is below ₹1 lakh.
    • Tax Withholding: The tax is withheld by the Indian service recipient at the time of payment.

    Why it is being Abolished?

    • This move is part of India’s attempt to reduce tensions with the US, which raised concerns over such taxes.
      • Similarly, the UK is considering the abolition of its digital services tax by April 2025.
    • In August 2024, the Indian government removed the 2% levy applied to offshore tech firms (e.g., cloud services, e-commerce).
      • The 6% levy on online advertisements remained, impacting companies like Google and Meta.
    • The Finance Bill 2025 proposes a sunset clause to phase out the 6% levy on online advertisements by April 1, 2025.
    [UPSC 2012] What is/are the recent policy initiative(s)of Government of India to promote the growth of manufacturing sector?  Setting up of:

    1. National Investment and Manufacturing Zones

    2. Providing the benefit of ‘single window clearance’

    3. Establishing the Technology Acquisition and Development Fund

    Select the correct answer using the codes given below:

    (a) 1 only   (b) 2 and 3 only  (c) 1 and 3 only   (d) 1, 2 and 3

     

  • Commission on Genetic Resources for Food and Agriculture (CGRFA)

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Commission on Genetic Resources for Food and Agriculture (CGRFA)

    Why in the News?

    The 20th meeting of the Commission on Genetic Resources for Food and Agriculture (CGRFA-20) is currently underway in Rome.

    About Commission on Genetic Resources for Food and Agriculture (CGRFA)

    • The CGRFA is the only permanent intergovernmental body addressing all components of biodiversity-related to food and agriculture.
    • It was established in 1983 as the Commission on Plant Genetic Resources for Food and Agriculture.
    • It operates under the Food and Agriculture Organization (FAO) of the United Nations.
    • It aims to create international consensus on managing biodiversity in food systems and ensuring the fair and equitable sharing of benefits from these genetic resources.
    • Membership: 179 countries (including India) and the European Union
    • Focus: Coordinates global efforts on biodiversity affecting agriculture, forestry, livestock, and aquatic species, including pollinators, soil organisms, and other vital species for food production.

    Structure and Mandate

    • Structure:
      • Governed by a biennial session where member countries discuss and make decisions.
      • A bureau, elected by member states, guides the Commission’s work.
      • The CGRFA Secretariat, hosted by FAO, offers technical and logistical support.
    • Mandate:
      • Policy Formulation: Develops global action plans, codes of conduct, and policy instruments for sustainable use and conservation of genetic resources for food and agriculture.
      • Global Assessments: Guides preparation of periodic assessments to monitor the status and trends of genetic resources and biodiversity.
      • Sustainable Use of Biodiversity: Promotes biodiversity use for food security, sustainable agriculture, and climate adaptation.
      • Fair and Equitable Benefit Sharing: Ensures fair distribution of benefits from genetic resources, especially plant materials under international treaties.
    • Achievements:
      • International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA): Adopted in 2001, it recognizes farmers’ contributions to crop diversity and provides a global system for accessing plant genetic materials for breeders, farmers, and scientists.
    [UPSC 2014] Consider the following international agreements:

    1. The International Treaty on Plant Genetic Resources for Food and Agriculture

    2. The United Nations Convention to Combat Desertification

    3. The World Heritage Convention

    Which of the above has / have a bearing on the biodiversity?

    Options: (a) 1 and 2 only (b) 3 only (c) 1 and 3 only (d) 1, 2 and 3

     

  • Foreign Policy Watch: India-Bangladesh

    50 Years of Farakka Barrage

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Farakka Barrage

    Why in the News?

    It was nearly 50 years ago, that India had completed the construction of the Farakka Barrage.

    About Farakka Barrage

    • The Farakka Barrage is located on the Ganges River in Murshidabad District, West Bengal, India, about 18 km from the Bangladesh border.
    • The barrage measures 2,304 meters (7,559 feet) in length.
    • Its construction began in 1962 and was completed in 1970 at a cost of 1 billion dollars. It became operational on April 21, 1975.
    • The Feeder Canal is approximately 42 km long, connecting the barrage to the Hooghly River.
    • Purpose:
      • It diverts water to the Hooghly River to maintain the navigability of Kolkata Port and to flush out sediment from the river.
      • It diverts 1,800 cubic meters per second of water from the Ganges.
    • Construction Details:
      • Built by Hindustan Construction Company, it consists of 109 gates, with 108 over the river and one over low-lying land as a precaution.
      • Supports the Farakka Super Thermal Power Station.
    • The 1996 Ganges Water Sharing Treaty ensured fair water distribution:
      • 70,000 cusecs or less: 50% to both India and Bangladesh.
      • 70,000 – 75,000 cusecs: India gets 35,000 cusecs, Bangladesh the balance.
      • 75,000 cusecs or more: India receives 40,000 cusecs, Bangladesh gets the remainder.

    Significance in India-Bangladesh Water Sharing:

    • The Farakka Barrage is crucial for irrigation in West Bengal, supporting agriculture during the dry season.
    • Bangladesh, particularly Mongla and Khulna, depends on the Ganges for water.
    • The diverted water has led to water scarcity, impacting agriculture, fisheries, and livelihoods in Bangladesh, causing diplomatic tensions.
    • This treaty ensures equitable distribution and guarantees a minimum flow for Bangladesh.
    • Issues: 
      • Water diversion has led to salinization and soil degradation in Bangladesh, affecting agriculture and freshwater supplies.
      • Biodiversity loss and damage to the Sundarbans mangrove forests have been significant environmental impacts.
    [UPSC 1997] The canal-carrying capacity of Farakka is:

    (a) 40,000 cusecs (b) 60,000 cusecs (c) 80,000 cusecs (d) 100,000 cusecs

     

  • Indian Navy Updates

    Exercise ‘AIKEYME’

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Exercise Aikeyme

    Why in the News?

    India is set to strengthen its military and maritime ties with African nations through two significant initiatives—Exercise Aikeyme (Africa-India Key Maritime Engagement) and IOS Sagar (Indian Ocean Ship Sagar).

    About Exercise Aikeyme 

    • Aikeyme is India’s first-ever multilateral naval exercise with 10 African nations, aimed at improving maritime cooperation, enhancing maritime security, and addressing regional threats.
    • It will be held off Dar-es-Salaam, Tanzania, from April 13 to 18, 2025.
    • The nations taking part include Tanzania (co-host), Comoros, Djibouti, Eritrea, Kenya, Madagascar, Mauritius, Mozambique, Seychelles, and South Africa.
    • It is aimed at increasing interoperability between the Indian Navy and African navies, with a focus on combating common threats like piracy and drug trafficking.
    • The goal is to make this exercise a biennial event and expand participation in future editions to include West African nations.
    • Key Features:
      • Visit Board Search and Seizure (VBSS) drills.
      • Arms firing exercises.
      • Helicopter operations.
      • Search and rescue missions.
      • Table-top and command post exercises on anti-piracy operations and information-sharing.

    IOS Sagar (Indian Ocean Ship) Initiative

    • The IOS Sagar initiative focuses on deepening India’s maritime cooperation with IOR countries.
    • It involves the deployment of the Indian Navy’s INS Sunayna, which will be manned by a combined crew of Indian sailors and 44 personnel from nine African countries.
    • The initiative will take place from April 5 to May 8, 2025.
    • Key Participating Countries: Sri Lanka, Maldives, Mauritius, Comoros, Kenya, Madagascar, Mozambique, Seychelles, and South Africa.
    • Activities:
      • The ship will undertake port calls at Dar-es-Salaam, Nacala, Port Louis, Port Victoria, and Male.
      • The ship will also engage in joint surveillance of the Exclusive Economic Zones (EEZs) of Tanzania, Mozambique, Mauritius, and Seychelles.
      • The personnel will undergo two-week training capsules at Kochi, including sea training, watchkeeping, and other professional naval activities.
  • Historical and Archaeological Findings in News

    Lapis Lazuli and its Ancient Significance

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Lapis Lazuli

    Why in the News?

    This newscard is an excerpt from the original article published in ‘The Hindu’.

    Lapis Lazuli and its Ancient Significance

    About Lapis Lazuli

    • Lapis lazuli is a deep-blue metamorphic rock prized for its vibrant colour, often used in jewellery and decorative items.
    • It is composed mainly of lazurite, with other minerals like calcite and pyrite, which give it its characteristic golden specks.
    • It is mainly found in Afghanistan’s Badakhshan province, though it is also present in Chile, Russia, and the US.
    • It has been valued since ancient times, particularly in Egypt, Mesopotamia, and Greece, and is known for its use in making pigments, especially ultramarine.

    Lapis Lazuli and its Ancient Significance

    Lapis Lazuli in Indus Valley Civilization (IVC):

    • The Indus Valley Civilization (IVC) (3300-1900 BC) had extensive trade with Mesopotamia and Afghanistan, where lapis lazuli was imported.
    • It was used for beads and ornaments found at Mohenjo-daro and Harappa, underscoring its value in Indus jewellery.
    • It was a sacred stone, often used in beads, pendants, and amulets, symbolizing spirituality and high social status.
    • It was likely associated with religious ceremonies and used to represent the gods.
    • The Indus people were skilled at bead-making, often combining lapis lazuli with other stones, such as gold.
    • The intricate designs, including incised or painted beads, reflect their technical expertise.

    Other Semi-Precious Stones Found in IVC:

    Several semi-precious stones were used by the IVC to create jewellery and ornaments:

    • Carnelian beads were made into pendants and rings, valued for their reddish-orange hue and durability.
    • Amethyst beads, a purple quartz variety, were also used, likely imported from other regions.
    • Jasper, a chalcedony variety, was used for beads and pendants, valued for its earthy tones.
    • Turquoise was used in beads, often combined with lapis lazuli and carnelian.
    • Steatite (Soapstone) was used for seals and beads, often engraved with animal motifs or symbols.
    • Crystal and quartz were used for translucent beads, adding a mystical quality to jewelry.
    • Gold, combined with semi-precious stones like lapis lazuli, carnelian, and turquoise, was extensively used in necklaces, bracelets, and earrings.

     

    [UPSC 2023] Lothal, a significant site of the Indus Valley Civilization, was particularly well-known as a:

    (a) major agricultural centre

    (b) centre for textile production

    (c) major trade hub for beads, gems, and ornaments

    (d) site with extensive fire altars

     

  • Judicial Reforms

    Appointment and Removal of High Court Judges

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Removal of High Court Judges

    Why in the News?

    The Chief Justice of India (CJI) has set up a three-member panel to investigate the alleged discovery of a significant sum of money at the residence of a sitting Delhi High Court judge.

    Appointment Process of High Court Judges:

    • According to Article 217, the President of India appoints High Court judges after consulting with the CJI, the Governor of the respective state, and the Chief Justice of the High Court.
    • In the case of the appointment of a judge other than the Chief Justice, the Chief Justice of the High Court is consulted as well.
    • Consultation Process:
      • The process of appointing judges is handled by a Collegium, which includes the CJI and the two senior-most judges of the Supreme Court.
      • The Collegium System allows for a collaborative decision-making process where the Chief Justice of the High Court initiates the proposal, which is then forwarded to the Chief Minister.
      • The Chief Minister, in turn, advises the Governor, who submits the proposal to the Union Law Minister.
      • The Chief Justice of the High Court is appointed in accordance with a policy to ensure that Chief Justices are from outside the respective states.
    • Appointment and Transfer of Judges:
      • The CJI and the senior-most judges of the Supreme Court collectively decide on the appointment and transfer of judges, ensuring judicial independence and preventing executive interference.

    Removal of Judges in the Higher Judiciary:

    • Impeachment Process:
      • Judges of the Supreme Court and High Courts can only be removed by impeachment, which requires a motion signed by 100 Lok Sabha MPs or 50 Rajya Sabha MPs.
      • The impeachment motion is investigated by a three-member judicial committee, and if the committee finds merit in the allegations, Parliament votes on the motion.
      • A 2/3rd majority is needed in both Houses for removal.
      • Parliament can, however, consider a motion to impeach a judge according to the procedure laid down in the Judges (Inquiry) Act, 1968.
    • In-House Inquiry Process:
      • The CJI can initiate an in-house inquiry in the event of serious allegations against a judge. This process involves the Chief Justice of the High Court submitting a report, and if the allegations are deemed serious, a three-member committee is constituted to investigate the matter.
      • If the committee recommends removal, the CJI may advise the judge to resign. If the judge refuses, their judicial work is withdrawn, and impeachment proceedings may be initiated.

    Historical Impeachment Efforts:

    • No judge has been impeached in India, though attempts have been made, including the failed motions against Justice V Ramaswami (1993) and Justice Soumitra Sen (2011).
    • Justice V Ramaswami (1993): Faced impeachment for financial misconduct, but the motion failed in the Lok Sabha.
    • Justice Soumitra Sen (2011): Resigned after impeachment proceedings for misappropriating funds.
    • Justice K Veeraswamy: Chief Justice of Madras HC, investigated for corruption but challenged the investigation. The case remained unresolved until his death in 2010.
    • Justice Shamit Mukherjee (2003), Justice Nirmal Yadav (2008), and Justice SN Shukla (2017): Faced criminal charges for corruption after in-house inquiries found substantial evidence against them.

     

    [UPSC 2019] Consider the following statements:
    1. The motion to impeach a Judge of the Supreme Court of India cannot be rejected by the Speaker of the Lok Sabha as per the Judges (Inquiry) Act, 1968.
    2. The Constitution of India defines and gives details of what Constitutes ‘incapacity and proved misbehaviour’ of the Judges of the Supreme Court of India.
    3. The details of the process of impeachment of the Judges of the Supreme Court of India are given in the Judges (Inquiry) Act, 1968.
    4. If the motion for the impeachment of a Judge is taken up for voting, the law requires the motion to be backed by each House of the Parliament and supported by a majority of total membership of that House and by not less than two-thirds of total members of that House present and voting.Which of the statements given above is/are correct?
    (a) 1 and 3 only (b) 2 only (c) 3 and 4 only (d) 1, 3 and 4

     

  • Parliament – Sessions, Procedures, Motions, Committees etc

    Lok Sabha approves Demands for Grants of ₹50 Lakh Cr

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Demands for Grants

    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:
    1. 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.
    2. 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