Budget 2019: What is Demand for Grants?

What is Demand for Grants?

Demands for Grants finds its place in Article 113 of the Indian Constitution as the expenditure from the Consolidated Fund of India in the Annual Financial Statement that has to be 'submitted 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.'

It is generally presented to the Lok Sabha with the AFS. 99 Demands for Grants were presented in the 2018-19 budget.

Ideally, each Ministry or department puts forth one Demand for Grants but more than one Demand can be presented depending on the expenditure's nature. A separate Demand is presented with regard to Union Territories without Legislature, with each Territory presenting an exclusive Demand.

What is each Demand comprised of?

The totals of (a) 'voted' and 'charged' expenditure (b) the 'revenue' and the 'capital' expenditure and (c) the gross total of the amount of expenditure for which the Demand is presented along with the loans and advances relating to specific services. It also mentions the grants to State and Union Territory Governments.

In addition to that, it also states the estimates of expenditure under different major heads of the Ministry's account. Recoveries and the total amount excluding the recoveries come next.

While a summary of the Demand is given right at the beginning of the document presented by the ministry, information about any new scheme, undertaking or a new company is indicated at the end of the document.