Finance Minister Nirmala Sitharaman is set to present the Union Budget for the fiscal year 2023-24 on February 1 as the country is slowly recovering from the impact of the Covid-19 pandemic.
Demands for Grants is one of the key terms associated with the Union Budget. With the presentation of the Union Budget 2023 around the corner, it is imperative to know what the term stands for.
What is Demand for Grants?
Demand for Grants is an expenditure estimate, including provisions related to revenue expenditure, capital expenditure, and grants, that is expected to be incurred in the next financial year. Hence, every ministry puts forth its own Demand for Grants and this is presented in the Lok Sabha as part of the Union Budget. However, it cannot be presented without the President of India's prior approval.
Article 113 of the Constitution states that any proposal or estimate seeking the withdrawal of money from the Consolidated Fund of India should be presented to the Lok Sabha in the form of a Demand for Grants.
"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." - Article 113(ii), Constitution of India
What comprises Demand for Grants?
The Demand for Grants comprises charged and voted expenditures. Interest on loans and other such payments are a part of the charged expenditure and it is not voted on in the Lok Sabha. Voted expenditure includes capital and revenue expenditure. Expenditure on government programs and schemes is considered a part of the voted expenditure.
Demand for Grants also includes details of capital expenditure and revenue expenditure. It further provides a breakdown of expenditures such as aid given to states and UTs, loans, advances, and provisions for each scheme and program of the ministry.
Large ministries can submit multiple Demands for Grants but usually, one Demand for Grants is submitted by each ministry or department.
The Lok Sabha has the power to give or deny assent and reduce the requested amount under a particular scheme.
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