Parliamentary Control Over Financial Matters
The Parliament, particularly the House of the People, has extensive control over financial matters of Central Government.
What is Annual Financial Statement under Article 112 ?
Every Financial Year, Annual Financial Statement consisting of estimated receipts and expenditure of Govt. of India is laid before Parliament. The estimates of expenditure have to show separately expenditure charged upon the Consolidated Fund of India and the sum required to meet other expenditure proposed to be made form Consolidated Fund of India. The estimates of expenditure have also to distinguish expenditure from revenue account from other expenditure.
The following expenditure are expenditure charged on the Consolidated Fund of India.
- The emoluments and allowances of the President and other expenditure relating to his office
- The salaries and allowances of Chairman and the Deputy Chairman of the Council of States and the Speaker and the Deputy Speaker of House of the People.
- Debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt
- The salaries, allowances and pensions payable to or in respect of judges of the Supreme Court
- The pension payable to or in respect of judges of any High Court
- The salary, allowances, and pension payable to or in respect of the Comptroller and Auditor General of India.
- Any sums required to satisfy any judgment, decree, or award of any Court or arbitral tribunal
- Any other expenditure declared by this Constitution or by Parliament by law to be so charged
What is procedure in respect of passing of estimates of expenditure by Parliament ?
Estimates related to expenditure charged on Consolidated Fund of India is not submitted to vote of Parliament but both houses can discuss such expenditure. Other expenditure can be presented before House of the People in form of demand for grants. The House of the People has power to assent or refuse assent to demand for grants. The House of the People can also assent to any demand subject to reduction.
No demand of grant can be made except on the recommendation of the President.
What are Appropriation Bills ?
After demand of grants is approved by the House of the People, Appropriation Bill under 114 is introduced before both the Houses to provide for appropriation out of Consolidated Fund of India all moneys required to meet the demand for grants and the expenditure charged on Consolidated Fund of India.
No amendment for varying the amount or altering the destination of any grant or varying the amount of any expenditure charged on Consolidated Fund of India can be proposed in any of the House. The decision of the presiding officer in respect of admissibility of an amendment is final.
No money can be withdrawn from Consolidated Fund of India except by appropriation bills.
what are Supplementary, Additional and Excess Grants ?
Article 115 provides for Supplementary, Additional and Excess Grants. If money authorized by the by House of People is found to be insufficient for a particular service or additional expenditure is required for some new service or excess expenditure has been incurred on any service a statement has to be placed before both houses of the Parliament. After that a separate statement has to be presented before the House of the People for approval of the such expenditure.
What is votes Votes on Account ?
Unless Appropriation Act is passed, no money can be withdrawn from Consolidated Fund of India. Circumstances can arise when expenditure is required before Appropriation Bill is passed by the Parliament. House of the People can allow certain sum for expenditure through Vote on Account till Appropriation Bills are passed by Parliament.
What is Vote on Credit ?
Votes of Credit is a grant obtained for meeting such expenditure which can not be specified with certainty due to magnitude or indefinite character of the expenditure.
What is Exceptional Grant ?
Exceptional Grants are such grants which do not form part of current expenditure of the Financial Year.
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Mukesh Kumar Suman is an advocate and legal author based at Delhi. He regularly appears before various Judicial Forums including NCLT, NCLAT, High Courts and the Supreme Court. He can be approached at mukesh_suman@outlook.com or +91 9717864570.