Overview
Demands for Grants are formal requests for funds presented by various ministries and departments of the Union Government as part of the Union Budget. These demands seek approval of the Lok Sabha for expenditure to be incurred during a financial year.
They are a key instrument through which Parliament exercises control over public expenditure.
Definition
Demands for Grants refer to the expenditure estimates of the government that require approval of the Lok Sabha under Article 113 of the Constitution.
Each ministry or department presents its own demand, and in the case of large ministries, multiple demands may be submitted.
Scope
Demands for Grants cover:
- Revenue expenditure
- Capital expenditure
- Grants to States and Union Territories
- Loans and advances
Types of Expenditure
Voted Expenditure
- Requires approval of the Lok Sabha.
- Forms the major part of government spending.
Charged Expenditure
- Not subject to voting (only discussion allowed).
- Includes:
- Salary and allowances of the President
- Salaries of judges of Supreme Court and High Courts
- Debt servicing obligations
- Expenditure on constitutional authorities
Constitutional Provisions
- Article 113:
- Demands for Grants must be submitted to the Lok Sabha.
- No demand can be made without the recommendation of the President.
- Article 114:
- No money can be withdrawn from the Consolidated Fund of India without parliamentary authorisation through an Appropriation Act.
- Article 115:
- Provides for supplementary, additional, and excess grants when budget allocations are insufficient.
- Article 116:
- Provides for Vote on Account, Vote of Credit, and Exceptional Grants in special situations.
Procedure in Lok Sabha
- Demands are presented after the general discussion on the Budget.
- They are examined by Departmentally Related Standing Committees.
- Each demand is taken up for discussion and voting separately.
- Only the Lok Sabha votes on demands; the Rajya Sabha has no voting power in this regard.
Guillotine
- Due to limited time, not all demands can be discussed.
- On the last day of discussion, the Speaker applies the guillotine, putting all remaining demands to vote without discussion.
Significance
- Ensures legislative control over executive spending.
- Provides a platform to scrutinise policies and expenditure of ministries.
- Reinforces the principle of financial accountability in governance.
Conclusion
Demands for Grants form a central component of India’s budgetary process, enabling the Lok Sabha to authorise and scrutinise government expenditure. They embody the constitutional principle that public funds can be spent only with legislative approval, ensuring transparency and accountability in financial administration.
