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Demands for grants guillotined, Appropriation Bill passed under Union Budget

  • Posted By
    10Pointer
  • Categories
    Polity & Governance
  • Published
    18th Mar, 2021

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.

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.

What is Guillotine?

  • A guillotine is a legislative mechanism to approve the fast-tracking of the passage of outstanding demands for grants without discussion.

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