Demands for Grants represent crucial requests for funds made by each ministry or department in India. These requests are presented to the Lok Sabha for approval, playing a significant role in the financial governance of the country.
Typically, a single demand is presented for each ministry, though larger ministries may have multiple demands. Each demand specifies the total funds needed for various expenditures, including revenue, capital expenses, grants to states/UTs, and loans. These demands are introduced in the Lok Sabha on the prior recommendation of the President of India and must be passed only in the Lok Sabha. Once approved, they become part of the Appropriation Bill, classified as a Money Bill.
After an initial general discussion on the budget, the Lok Sabha adjourns for a few weeks. During this recess, the Demands for Grants undergo scrutiny by relevant Standing Committees. These committees, comprising 24 groups with 31 members each (21 from Lok Sabha and 10 from Rajya Sabha), evaluate the demands and submit reports to the House with persuasive recommendations.
In the Lok Sabha, members can propose cut motions during the discussion on Demands for Grants. These motions aim to reduce the requested amount and can highlight issues related to economy, policy differences, or grievances. The Speaker has the discretion to admit or reject these motions, making them an essential tool for parliamentary oversight.
Several types of grants exist within the budgetary framework:
A unique type of grant, the Vote of Credit is utilized for addressing unexpected demands on government resources. It provides limited details compared to exceptional grants and is often referred to as a "blank cheque" issued to the government by the Lok Sabha.
Q1. What are Demands for Grants in India?
Answer: Demands for Grants are requests made by ministries to the Lok Sabha for approval of funds needed for various expenditures, forming a part of the Appropriation Bill.
Q2. What role do Standing Committees play in the budget process?
Answer: Standing Committees scrutinize the Demands for Grants during the Lok Sabha's recess and provide reports with recommendations to the House.
Q3. What are cut motions?
Answer: Cut motions are proposals made by Lok Sabha members to reduce the requested funding amount during budget discussions, highlighting economic or policy concerns.
Q4. How do supplementary grants differ from additional grants?
Answer: Supplementary grants address insufficient original budget allocations, while additional grants are requested for new services not included in the original budget.
Q5. What is a Vote of Credit?
Answer: A Vote of Credit is a special grant used to meet unexpected government demands, often described as a "blank cheque" for the government without extensive details.
Question 1: What is the primary function of Demands for Grants?
A) To propose new policies
B) To request funds for government expenditure
C) To approve tax reforms
D) To allocate resources for state governments
Correct Answer: B
Question 2: How many Standing Committees are there in the Indian Parliament?
A) 20
B) 24
C) 31
D) 15
Correct Answer: B
Question 3: What type of grants are requested when the original budget is insufficient?
A) Token Grants
B) Supplementary Grants
C) Exceptional Grants
D) Excess Grants
Correct Answer: B
Question 4: What is a Vote of Credit primarily used for?
A) Regularizing excess expenditures
B) Meeting unexpected government demands
C) Funding educational programs
D) Approving new policies
Correct Answer: B
Question 5: What is the minimum amount requested in a Token Grant?
A) ₹10
B) ₹100
C) ₹1
D) ₹50
Correct Answer: C
Question 6: What discretion does the Speaker of Lok Sabha have regarding cut motions?
A) To automatically approve them
B) To admit or reject them
C) To modify their content
D) To forward them to the President
Correct Answer: B
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