Demand for Grants

March 24, 2025

The Demand for Grants is important element in India’s budgetary framework. It is the formal request for funds by various ministries from the Consolidated Fund of India. This process is outlined in Article 113 of the Constitution. The Lok Sabha votes on these demands, which are essential for government expenditure.

About Demand for Grants

Demand for Grants represents the estimated expenditure required by ministries. Each ministry typically presents one demand for grant. However, larger ministries may present multiple demands. The demands cover revenue and capital expenditures. They also include grants to states and union territories, along with loans and advances.

Recent Developments

On March 21, 2025, the Lok Sabha passed the Demand for Grants for 2025-26. The approved expenditure exceeded ₹50 lakh crore. The House applied the guillotine method. This means funds for certain ministries were approved without debate. The Appropriation Bill for 2025 was also passed.

Why Are Demands for Grants Important?

Clear Spending Plans: These requests show how the government intends to use taxpayer money, ensuring transparency and accountability.
Government Priorities: The allocations provide an accurate overview which sector is getting the most attention.
Impact on Public Services: Proper funding improves essential services like hospitals, schools, and roads, directly affecting your daily life.

What If a Demand Isn’t Approved?

If a demand for grants is rejected, the government cannot spend money on that program or ministry. In rare cases, this could slow down public services or development projects. To prevent disruptions, the government may use a temporary vote-on-account, which allows spending for a short period until full approval is granted.

« Previous Post Next Post »