DEMANDS
FOR GRANTS - POLITY
News:
Finance Ministry seeks
expenditure proposals for final supplementary demands for grants
What's
in the news?
●
The Finance Ministry has sought
expenditure proposals for the second and final batch of Supplementary Demands
for Grants from various ministries and departments ahead of the Budget session
likely to commence in the last week of January.
Demand
for Grants:
●
Demand for grants are estimates of
expenditure from the Consolidated Fund
of India that are included in the annual financial statement (Budget).
Constitutional
Provisions:
●
These grants are submitted in pursuance of
Article 113 (Procedure in Parliament
with respect to estimates) of the Indian Constitution.
●
It must
be voted on in the Lok Sabha. The Lok Sabha has the power to deny or reduce
the requested amount for a particular scheme.
Consists
of:
●
It includes provisions with respect to
revenue expenditure, capital expenditure, grants to State and UT governments
together with loans and advances.
●
Generally, one Demand for Grant is
presented in respect of each Ministry or Department. However, more than one
Demand may also be presented for a Ministry or Department depending on the
nature of expenditure.
●
For Union Territories without Legislature,
a separate Demand is presented for each of the Union Territories.
Types
of Demand for Grants:
Article 115 of the Indian
Constitution provides for Supplementary, additional or excess grants.
●
Supplementary
grants: The President shall cause to be laid before both
Houses of Parliament a demand, if the amount authorized under Article 114
(Appropriation Bills) is found to be insufficient for the purposes.
●
Additional
grants: When a need has arisen for additional expenditure
upon some new service not contemplated in the Budget, the President shall cause
to be laid before both Houses of Parliament such demand.
●
Excess
grants: Similarly, if any money has been spent on any service
in excess of the amount granted for that service, the President shall cause to
be laid before both Houses of Parliament showing a demand for excess grants.
Difference
between Supplementary and Excess Grants:
|
Supplementary
Grants |
Excess Grants |
|
● The
Supplementary grants are presented to and passed by the House before the end
of the financial year and no discussion can be raised on the original grants.
● Example: During
the Covid-19 pandemic, the government has sought Parliamentary approval for a
supplementary grant of ₹2.35 lakh crore for 2020-21, to meet additional
expenditures on ○ Pradhan Mantri
Garib Kalyan Yojana ○ Aatmanirbhar
Bharat stimulus package ○ Grants-in-aid
for the State Disaster Response Funds ○ Recapitalization
of public sector banks etc.
|
● The demands for
excess grants are made after the expenditure has actually been incurred and
after the financial year to which it relates, members can point out how money
has been spent unnecessarily.
● The Comptroller
and Auditor General (CAG) of India bring such excesses to the notice of the
Parliament.
● The Public
Accounts Committee (PAC) examines these excesses and gives recommendations to
the Parliament.
|