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Demand for Grants: Constitutional Provisions & Process

Demand for Grants

The Lok Sabha is set to deliberate and vote on the demand for grants concerning the Health and Family Welfare Ministry for the fiscal year 2024-25.

Demand for Grants
[Ref: deccanherald]

About Demand for Grants:

  • Demand for Grants represents a formal request for funds submitted by various ministries or departments as part of the annual financial proceedings.
  • This request includes provisions for both revenue and capital expenditures as well as allocations for states, union territories, loans, and advances.
  • Typically, one demand per ministry is standard.
    • However, larger entities may submit multiple demands.

Constitutional Provisions:

  • Article 113 of the Constitution mandates that estimates of expenditure from the Consolidated Fund be presented in the form of demands for grants, which need approval from the Lok Sabha.

Process:

  • Budget Presentation: The finance minister presents the Union Budget, which encompasses these demands, indicating the government’s expected expenditures for the coming year.
  • Departmental Estimates: Each ministry drafts a detailed estimate of its expected financial needs, which are then compiled into the demands for grants.
  • Committee Scrutiny: Various Parliamentary Committees review these demands, proposing adjustments or cuts as necessary.
  • Lok Sabha Discussion and Approval: MPs discuss each demand, with the power to approve, amend, or reject them.
  • Cut Motions: MPs may propose cut motions—Disapproval of Policy Cut, Economy Cut, and Token Cut—to express dissent against specific budget allocations.
  • Guillotine: On the final day allocated for these discussions, undebated demands are collectively voted on, a practice known as “guillotine,” due to time constraints.
  • Passage of the Budget: Following approval, the demands are incorporated into the Appropriation Bill, which, upon passing, authorizes the withdrawal of funds from the Consolidated Fund of India for government expenditures and obligations.

Ref: Source

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Frequently Asked Question:

What is the meaning of no demand for Grants?

“No demand for Grants” would imply that there are no formal requests for funding from any ministry or department within the government budgetary process.

What is the difference between Demand for Grants and Appropriation Bill?

The difference between “Demand for Grants” and the “Appropriation Bill” is that the former is a request for funds made by ministries, while the latter is a legal authorization by the parliament allowing the government to withdraw the specified amounts from the Consolidated Fund.

What is voting on demands of Grants?

Voting on demands for Grants refers to the Lok Sabha’s process of reviewing and deciding on the formal requests for funding made by various government ministries and departments.

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