ARTICLE 113

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Article 113 of the Indian Constitution outlines the procedural aspects within the Parliament concerning the estimates presented in the annual financial statement, which is commonly referred to as the Budget. This article delineates the method by which the estimates of government revenue and expenditure, as presented in Article 112, are scrutinized, debated, and ultimately approved by the Indian Parliament.

What does Article 113 states ?

 Procedure in Parliament with respect to estimates

(1) So much of the estimates as relates to expenditure charged upon the Consolidated Fund of India shall not be submitted to the vote of Parliament, but nothing in this clause shall be construed as preventing the discussion in either House of Parliament of any of those estimates

(2) So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the House of the People, and the House of the People shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein

(3) No demand for a grant shall be made except on the recommendation of the President

Demand for Grants
  • The demand for grants include allocations for revenue expenditure, capital expenditure, grants to state governments and union territories, as well as loans and advances.
  • As per Article 113 of the Constitution, it is mandated that any request or evaluation aimed at securing funds from the Consolidated Fund of India must be presented to the Lok Sabha in the form of a demand for grants.
  • The grant demand include both charged and voted expenses :-
  • Liabilities of the Indian government, such as interest payments, are classified as charged expenditures and are not subject to a vote in the Lok Sabha.
  • In contrast, voted expenditure encompasses both revenue and capital outlays that are projected to be expended in the upcoming fiscal year for a government initiative.
  • Typically, a single Demand for Grant is made for each Ministry or Department.
    However, depending on the characteristics of the expenditure, a Ministry or Department may put up multiple Demands. Large government departments, such as the Ministry of Finance and the Ministry of Defence, often receive numerous requests for grants.
  • Each Union Territory without a legislature is assigned a distinct demand.
    Every Demand starts by providing a concise overview of the total amount of spending allocated for that particular Demand.
Types of Demand for Grants

Supplementary Grants :-

  • The situation arises when the allocated funds approved by Parliament, as specified in the appropriation act for a particular service for the present fiscal year, are deemed inadequate for that year.
  • The grant is submitted to Parliament and subsequently authorized prior to the conclusion of the fiscal year.

Additional Grants :-

  • The provision is made when there is a requirement for increased expenditure on a new service that was not anticipated in the budget for the current fiscal year.

Excess Grants :-

  • This concept of grant occurs when an expenditure on a certain service surpasses the allocated budget for that service within a given financial year. The voting process for the financial year is conducted by the Lok Sabha.
  • Prior to the submission of requests for additional grants to the Lok Sabha for voting, it is imperative that they receive approval from the Public Accounts Committee of Parliament.

Vote of Credit :-

  • The provision is authorized in cases where India’s resources are unexpectedly strained due to the scale or uncertain nature of the required service.
  • The requirement cannot be adequately expressed using the typical information provided in a budget.

Exceptional Grants :-

  • The inclusion of this particular service is not now within the scope of any fiscal year’s offerings.
  • It is provided with a specific intention.

Token Grants :-

  • The allocation of funds for a new service can be authorized by reappropriation, provided that sufficient resources are available to cover the requested expenditure.
  • The concept of reappropriation entails the reallocation of financial resources from one budgetary category to another. There is no associated cost involved.

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