Union Budget 2019-20: What is Demand for Grants?

Demand for Grants is the form in which estimates of expenditure from the Consolidated Fund. Usually, only one Demand for Grant is presented by each Ministry or Department. However, if necessary, the Ministry or Department can present more than Demand for Grant.

The Demand for Grants includes provisions with respect to revenue expenditure, capital expenditure, grants to State and Union Territory governments together with loans and advances.

According to Article 113 of the Indian Constitution, estimates of expenditure from the Consolidated Fund of India in the Annual Financial Statement are to be voted in the Lok Sabha. These expenditures are submitted in the lower house of Parliament in the form of Demand for Grants. Each Demand gives the totals of “voted” and “charged” expenditure and also the grand total of the amount of expenditure for which the demand is presented.

The NDA government would on 5 July unveil the full Budget for 2019-20. On 1 February, the government had presented an Interim Budget to take Parliament’s nod for spending till the new government takes charge after the general elections.

In December 2018, the government sought Parliament approval for additional net spending of Rs 15,065.49 crore during the current fiscal. The second batch of Supplementary Demand for Grants for 2018-19 involving gross spending of Rs 85,948.86 crore was tabled by the then finance minister Arun Jaitley in the Lok Sabha.