Supplementary Demands For Grants

 Supplementary Demands For Grants

• The Union government sought approval from Parliament for the second batch of Supplementary Demands for Grants worth rs.  2.7 lakh crore for the financial year 2022- 23. 

Demand for Grants

• Article 113 of the Constitution requires that any proposal or estimate seeking withdrawal of money from the Consolidated Fund of India should be presented to the Lok Sabha in the form of a demand for grants.
• Any withdrawal or disbursement from the Consolidated Fund of India can only be done by passing a bill in the Lok Sabha, the house of people.
• Every ministry prepares a demand for grants for the expenditure to be incurred in the next financial year. These demands are collectively presented in the Lok Sabha as part of the Union Budget.
• The demand for grants include both charged and voted expenditure. Charged expenditures are considered liabilities of the government of India such as payment of interest and are not put to vote in the Lok Sabha.
• The other category of expenditure is voted expenditure that includes revenue and capital expenditure to be incurred on a government scheme in the next financial year. Usually, there is a demand for grant for each ministry, but large ministries like Finance and Defence have more than one demand for grants.

Demand for Grants: How is it prepared?

• Each demand for grant is prepared in two ways:
• First, it clearly distinguishes the charged expenditure and the voted expenditure
• It also classifies expenditure as capital expenditure and revenue expenditure
• While capital expenditure results in the creation of some kind of assets for the government, revenue expenditures are operational in nature.

How Demand for Grants are Presented :

• Under Article 113, the Lok Sabha has the power to give or refuse its assent to a demand for grants or it can reduce the amount specified in the demand.
• Article 113 prescribes that no demand for grants can be presented in the Lok Sabha without the President of India’s prior approval.
• A Presidential recommendation is also required for tabling a Money Bill in the Lok Sabha. The Finance Bill, accompanying the annual financial statement which is called the Union Budget, also carries a certificate issued by the President.
• Article 115 contains provisions related to supplementary, additional or excess grants.
• Article 116 of the Constitution pertains to Votes on account, Votes of credit and exceptional grants

Practice Questions for Prelims

Consider the following statements:
1. the term budget has nowhere been used in the constitution, rather it is known as the annual financial statement dealt in article 112.
2. No demand for a grant can be made without the recommendations of the President.
3. Both Lok Sabha and Rajya Sabha can vote on the demand for grants.
4. The expenditure charged on the consolidated Fund of India shall not be submitted for discussion and voting of the Parliament.

Which of the above statements is/are correct?
a) 1,2 and 3 only
b) 2,3 and 4only
c) 1 and 2 only
d) 1, 3 and 4 only

Ans. c)

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