Budget FAQs: What is demand for grants?

Budget FAQs: What is demand for grants?

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Demand for Grant is defined in Article 113 of the Indian constitution as the expenses charged upon the Consolidated Fund of India that is presented during the Union Budget in the Lok Sabha.

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The Article states that the Lok Sabha has the power to assent or refuse a demand for grants.

Generally, one demand for grant is presented by each concerned ministry or department, but multiple demands may be presented upon consideration of the expenditure required.

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The demand includes the total provision of funds required for a given service such as revenue expenditure or capital expenditure, or grants and advances to states and union territories. In the case of union territories without a legislature (such as the recently created Ladakh UT), a separate demand is presented for each UT.

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Each presented demand gives a total of 'voted' and 'charged' expenditure along with the total expenditure of the grant. This is then further broken down into major and minor heads of account and presented under the plan (expenses forming part of a five-year plan comprising of salaries, subsidies, pension and so forth) and non-plan (interest payments, social services, grants to states and UTs and so forth) basis.

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