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Demand for Grants

MSME, MSME sector

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	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.&nbsp;</div>
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	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 &#39;voted&#39; and &#39;charged&#39; expenditure as also the &#39;revenue&#39; and &#39;capital&#39; expenditure included in the demand separately, and also the grand total of the amount of expenditure for which the demand is presented.&nbsp;</div>
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	This is followed by the estimates of expenditure under different major heads of account. The breakup of the expenditure under each major head between &#39;Plan&#39; and &#39;Non-Plan&#39; 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 &#39;New Service&#39; or &#39;New Instrument of Service&#39;, such as formation of a new company, undertaking or a new scheme, etc, if any, are indicated at the end of the document.</div>
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	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.&nbsp;</div>
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	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 &#39;voted&#39; and &#39;charged&#39; items of expenditure, the latter are also included in the demand presented for that service but the &#39;voted&#39; and &#39;charged&#39; provisions are shown separately in that demand.<br />
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	<strong>Read full&nbsp;Demand for Grants documents<br />
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	<a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2021-02/alldg.pdf" target="_blank">Demand for Grants in Budget 2021-2022</a></strong></div>
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What is Demand for Grants, Demand for Grants Meaning, Demand for Grants Definition

What is Demand for Grants

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		The Expenditure Budget of the government highlights the allotment of funds for disbursement to different ministries, sectors, departments in a financial year as part of the Union Budget. The allotments are made under Plan and non-Plan estimates for departments and ministries concerned.&nbsp;</div>
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		The government prepares the expenditure portfolio in three different documents:&nbsp;</div>
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		<strong>1. Expenditure profile:</strong> The expenditure profile compiles relevant data across all ministries and departments to sketch a profile of the general financial performance of the government. It is one of the explanatory documents that aid economic analyses. The statements contained in this document are prepared on the basis of data given by ministries. Some of the statements are based on the data contained in the Expenditure Budget. It includes Budgetary trends on gender Budget, the welfare of women and children, resource allocation for the northeastern states and welfare of SC/STs.</div>
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		<strong>2. Demand for Grants:</strong> It is the document in which estimates of expenditure from the consolidated fund of India are submitted in pursuance of Article 113 of the Constitution. They are included in the annual financial statement and are required to be voted upon in the Lok Sabha. The demands for grants include both charged and voted expenditure. These are further classified as revenue and capital expenditure according to the nature of end-use.</div>
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		<strong>3. Expenditure Budget:</strong> As explained above, the Expenditure Budget contains details and estimates of the amount to be allocated to different ministries and departments for their proper functioning in a given financial year.&nbsp;</div>
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		<strong>What are the parts of Expenditure Budget?</strong></div>
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		The Expenditure Budget is further divided into capital expenditure and revenue expenditure.&nbsp;</div>
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	<strong>Capital Expenditure:</strong> This expenditure pertains to amount spent on the creation of assets and is a cause for a reduction in liabilities for the government. It is non-recurring in nature and adds to the capital stock of the economy, increasing its productivity through long-term developmental programmes and welfare schemes &mdash; for instance, construction of metro rail networks, highways, ports, etc. It also includes the loans given to Union Territories and states, and repayment of borrowings.&nbsp;</div>
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	<strong>Revenue Expenditure:</strong> This section details of expenditure that neither creates assets nor causes a reduction in liability for the government. It is recurring in nature and is incurred on the normal functioning of the government. The allocations under Revenue Expenditure include payment of salaries, pension, interests, expenditure on administration, defence, health, and other services in the country.<br />
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	<strong>Read full&nbsp;Expenditure Budget documents<br />
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	<a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-02/expenditure budget.pdf" target="_blank">Expenditure Budget 2020-2021</a></strong></div>

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What is Expenditure Budget, Expenditure Budget Meaning, Expenditure Budget Definition

Expenditure Budget

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	Capital Budget consists of capital receipts (like disinvestment, borrowing, loans from public or foreign governments, Reserve Bank of India, etc) and capital expenditure (like expenditure on development of machinery, health facilities, etc).</div>
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	Capital budgeting comprises two words &mdash; &#39;capital&#39; and &#39;budget&#39;. It implies setting targets for projects/schemes to ensure maximum profitability.</div>
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	<strong>Parts of Capital Budget:</strong> Capital budget is divided into two parts &mdash; capital receipts and capital expenditure.</div>
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	<strong>Capital receipts in Union Budget</strong></div>
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	Capital receipts refer to incoming cash flows. They can be both non-debt and debt receipts. Loan from the general public, foreign governments and RBI form a major part of capital receipts.</div>
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	<strong>Example of capital receipts:</strong> Recovery of loans and advances given to state governments and foreign governments, disinvestment proceeds, money accrued to the government from issue of bonus shares, etc, are all examples of non-debt capital receipts.</div>
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	Debt receipts are those which the government needs to repay along with interest. Most of the government&#39;s capital receipts are debt receipts. They are shown as liabilities in the government&rsquo;s balance sheet.</div>
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	<strong>Capital expenditure in Union Budget</strong></div>
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	Capital expenditure is the expenditure on the development of machinery, equipment, building, health facilities, acquisition of assets like land, research &amp; development, education, etc.</div>
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	<strong>Examples of capital expenditure: </strong>Loans given by the government to states and public-sector undertakings (PSUs), loans that were taken in the past but are now returned, spending on infrastructure, machinery, land, road, etc.</div>
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What is Capital Budget, Capital Budget Meaning, Budget News, Capital Budget Types

Capital Budget

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	Among the several government accounts, the Consolidated Fund of India is the most crucial. Constituted under Article 266(1) of the Indian Constitution, the Consolidated Fund of India is the account of the revenue the Government of India receives &mdash; via income tax, Customs, central excise and the non-tax revenue &mdash; and the expenses it makes, excluding exceptional items.</div>
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	Any money raised by the government, including loans through public notifications, treasury bills, and borrowings from foreign governments or international institutions, is always credited to this fund. Likewise, whatever money the Indian government spends &mdash; government expenditure &mdash; is incurred from this account. The government cannot withdraw any fund from this account without the approval of Parliament. Essentially, a sum of Rs 500 crore from Consolidated fund of India is transferred to the Contingency Fund of India for dealing with any emergency situation. However, if the contingency fund is not used by the government in a given financial year, there is no requirement to add more to it.</div>
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	<strong>Disbursement charged on Consolidated Fund of India</strong></div>
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	Payment of interests, loans and advances to state governments, internal debt of the central government, and grants-in-aid to state governments account for the bulk of expenditure.<br />
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	<strong>Read full&nbsp;Consolidated Fund of India&nbsp;document</strong> <strong>of Budget 2020-2021</strong><br />
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	<a href="https://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2020-02/allafs.pdf" target="_blank"><strong>STATEMENT I</strong></a></div>
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What is Consolidated Fund of India, Budget News, Consolidated Fund of India Definition

Consolidated Fund of India

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	Excess grant is the money given to the government when the already allocated money for expenditure for that year does not turn out to be enough and extra money is sought. The demand for excess grant is provided for under Article 115 of the Indian Constitution. This demand for extra money or excess grants is made when the expenditure has been incurred after a financial year has expired.</div>
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	The Comptroller and Auditor General (CAG) brings the demand for an excess grant to the notice of Parliament through a report on appropriation account. The excess grant is then examined by the Public Accounts Committee, which makes recommendations regarding their regularisation in its report to Parliament.</div>
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	<strong>Article 115 of the Constitution states the following:</strong></div>
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	If the amount authorised by any law made in accordance with the provisions of Article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or...</div>
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	...if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year, cause to be laid before both Houses of Parliament another statement showing the estimated amount of that expenditure or cause to be presented to the House of the People a demand for such excess, as the case may be.</div>
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	The provisions of Articles 112, 113 and 114 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant.</div>
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Demand for Grants

What is Demand for Grants

Latest Updates on Demand for Grants

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