The Lok Sabha on Thursday passed the supplementary demand for grants (second batch for 2020-21)

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                              PART V (THE UNION) OF INDIAN CONSTITUTION

Art 112. Annual financial statement: The Union Budget of a year, also referred to as the annual financial statement (AFS), is a statement of the estimated receipts and expenditure of the government for that particular year.

Art 113. Procedure in Parliament with respect to estimates: Article 113 of the Constitution requires that any proposal or estimate seeking withdrawal of money from the Consolidated Fund of India should be presented to the Lok Sabha in the form of a demand for grants. Article 113 (iii) prescribes that no demand for grants can be presented in the Lok Sabha without the President of India’s prior approval.

Art 114. Appropriation Bills: After the Demands for Grants are voted by the Lok Sabha, Parliament’s approval for the withdrawal from the Consolidated Fund of India of the amounts so voted and of the amount required to meet the expenditure charged on the Consolidated Fund is sought through the Appropriation Bill.

Art 115. Supplementary, additional or excess grants: When grants, authorised by the Parliament, fall short of the required expenditure, an estimate is presented before the Parliament for Supplementary or Additional grants. These grants are presented and passed by the Parliament before the end of the financial year.

The additional grant required to meet the required expenditure of the government is called Supplementary Grants. Any withdrawal or disbursement from the Consolidated Fund of India can only be done by passing a bill in the Lok Sabha, the house of people.

Art 116. Votes on account, votes of credit(unexpected demand upon resources) and exceptional grants( granted for a special purpose ): The Constitution has authorised the Lok Sabha to make any grant in advance in respect to the estimated expenditure for a part of the financial year, pending the completion of the voting of the demands for grants and the enactment of the appropriation bill. This provision is known as the ‘vote on account’.

Art 117. Special provisions as to financial Bills:

All Money bills are Financial bills but all Financial bills are not Money bills. Money bills are certified by the Speaker of Lok Sabha. Only those financial bills are Money bills which contain exclusively those matters which are mentioned in Article 110 of the Constitution.

Financial Bills (I)– Article 117 (1) It is similar to a money bill in two respects:

Both of them can be introduced only in the Lok Sabha and not in the Rajya Sabha and can be introduced only on the recommendation of the President. In all other respects, a financial bill (I) is treated as an ordinary bill. ie. it can be either rejected or amended by the Rajya Sabha and in case of a disagreement between the two Houses over such a bill, the President can summon a joint sitting of the two Houses to resolve the deadlock.

Financial Bills (II)– Article 117 (3): A financial bill (II) contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110. It is governed by the same legislative procedure which is applicable to an ordinary bill. Such Bills can be introduced in either House of Parliament. However, recommendation of the President is essential for, not at introduction time, consideration of these Bills by either House and unless such recommendation is received, neither House can pass the Bill.