Demands for grants guillotined, Appropriation Bill passed under Union Budget

Context

The Lok Sabha guillotined all demands for grants related to FY2021-22. The House also approved the Appropriation Bill with this more process of Union Budget has been completed.

About the Demand for grants

• Constitutional Provision: Demand for grants is the form in which estimates of expenditure from the Consolidated Fund are submitted in pursuance of Article 113 of the Constitution.
  • Every ministry prepares a demand for grants for the expenditure to be incurred in the next financial year.
  • These demands are collectively presented in the LokSabha as part of the Union Budget.
• Categories: The demand for grants includes charged and voted expenditure.
  • Charged expenditures are considered liabilities of the government of India such as payment of interest and are not put to vote in the LokSabha.
  • Voted expenditure includes revenue and capital expenditure to be incurred on a government scheme in the next financial year.
• Powers of Lok Sabha: Under Article 113, the LokSabha has the power to give or refuse its assent to a demand for grants or it can reduce the amount specified in the demand.
• Presentation of Grants: Article 113, prescribes that no demand for grants can be presented in the Lok Sabha without the President of India’s prior approval.
  • Under Articles 117 and 274 of the Indian Constitution, a Presidential recommendation is also required for tabling a Money Bill in the LokSabha.

Appropriation Bill

• Enactment of Appropriation Bill allows the government to withdraw money from the Consolidated Fund of India.
• Once the Rajya Sabha returns the Appropriation Bill, it will be sent to the President for assent and then it will become law.