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WHAT IS DEMAND FOR GRANTS


Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha be submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement. 
 
Generally, one Demand for Grant is presented in respect of each ministry or department. However, more than one demand may be presented for a ministry or department depending on the nature of expenditure. With regard to Union Territories without legislature, a separate demand is presented for each of the Union Territories. Each Demand first gives the totals of 'voted' and 'charged' expenditure as also the 'revenue' and 'capital' expenditure included in the demand separately, and also the grand total of the amount of expenditure for which the demand is presented. 
 
This is followed by the estimates of expenditure under different major heads of account. The breakup of the expenditure under each major head between 'Plan' and 'Non-Plan' is also given. The amounts of recoveries taken in reduction of expenditure in the accounts are also shown. A summary of Demands for Grants is given at the beginning of the Budget document, while details of 'New Service' or 'New Instrument of Service', such as formation of a new company, undertaking or a new scheme, etc, if any, are indicated at the end of the document.
 
Each demand normally includes the total provisions required for a service; that is, provisions on account of revenue expenditure, capital expenditure, grants to state and Union Territory governments, and also loans and advances relating to the service. 
 
In cases where the provision for a service is entirely for expenditure charged on the Consolidated Fund of India, for example, interest payments (Demand for Grant No 35), a separate Appropriation, as distinct from a Demand, is presented for that expenditure and it is not required to be voted by the Lok Sabha. However, where expenditure on a service includes both 'voted' and 'charged' items of expenditure, the latter are also included in the demand presented for that service but the 'voted' and 'charged' provisions are shown separately in that demand.

Read full Demand for Grants documents

Demand for Grants in Budget 2020-2021
 

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