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Understanding Grants in Indian Parliamentary Process



  Jun 13, 2024

Understanding Grants in Indian Parliamentary Process



Demands for Grants:

● These are requests for funds presented by each ministry or department to the Lok Sabha for approval.

● Generally, one demand is presented per ministry, but larger ministries may have multiple demands.

● Each demand outlines the total funds required for various types of expenditures, including revenue, capital, grants to states/UTs, and loans.

● They are introduced in the Lok Sabha  on the prior recommendation of the President of India.They are to be passed only in the Lok Sabha after which they are made a part of the Appropriation Bill which is a Money Bill


Consideration of Demands by Standing Committees:

● After the initial general discussion on the budget, the Lok Sabha adjourns for a few weeks.

● During this recess, the Demands for Grants are scrutinized by relevant Standing Committees.

● These committees submit reports to the House with their recommendations, which are persuasive in nature.

● There are 24 Standing Committees, each with 31 members (21 from Lok Sabha, 10 from Rajya Sabha).


Cut Motions:

● During the discussion on Demands for Grants, Lok Sabha members can propose cut motions to reduce the requested amount.

● Cut motions can be used to highlight issues of economy, policy differences, or grievances.

● The Speaker has the discretion to admit or reject cut motions.


Supplementary, Additional, Token, Excess, and Exceptional Grants:

● Supplementary Grants: Requested when the amount authorized in the original budget is insufficient.

● Additional Grants: Requested for new services not included in the original budget.

● Token Grants: Requested for new services where the funds are available through reappropriation, but a token amount of ₹1 is sought from the Lok Sabha.

● Excess Grants: Requested to regularize excess expenditure incurred beyond the original budget allocation.

● Exceptional Grants: Requested for services not part of the current year's budget, with details provided only after the financial year ends.


Vote of Credit:

● A special type of grant used for meeting unexpected demands on government resources.

● Limited details are provided compared to exceptional grants.

● Often referred to as a "blank cheque" given to the government by the Lok Sabha.




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