What happens after Monday?
In the days following the Budget presentation, the ‘Demands for Grants’ from ministries are examined by their respective Parliamentary Standing Committees.business Updated: Jul 04, 2009 22:13 IST
In the days following the Budget presentation, the ‘Demands for Grants’ from ministries are examined by their respective Parliamentary Standing Committees. There are 24 such committees, including ones on industry, home affairs, defence and finance. These committees submit reports to the Lok Sabha on each ministry’s demands.
After the committees table their reports, Parliament discusses the demands. MPs can call for ‘cut motions’, which reduce the grant to Re 1 (signifying disapproval of the ministry’s policies), by a specific amount (an ‘economy’ cut) or by a token amount of Rs 100 (to express a specific grievance). Votes on demands take place after the discussion.
However, demands of most ministries tend to be ‘guillotined’ due to lack of time, i.e., they are voted through without
An Appropriation Bill is voted on, which allows government to spend money from the Consolidated Fund comprising all revenues, interest earnings, fresh borrowings.
Finance Bill passed by Lok Sabha.
The Rajya Sabha has limited powers when it comes to ‘money bills’, i.e., bills requiring appropriations from the Consolidated Fund or which involve tax changes. Rajya Sabha can only recommend amendments.
During the year, if the government needs to spend money that has not been voted on by Parliament, it can introduce supplementary Demands for Grants.
There are certain expenditures which are not voted on by Parliament but are charged directly to the Consolidated Fund — such as salaries and allowances of the President and Supreme Court judges. Interest paid by the government on its debt is also charged directly to the fund.