STAGES IN ENACTMENT CHARGED EXPENDITURE GRANTS

In the Indian Parliament, the process of approving financial matters, including charged expenditure and grants, involves specific stages.

Charged Expenditure:

1. Definition:
   • Charged expenditure refers to government spending that is charged on the Consolidated Fund of India and does not require annual parliamentary approval.
2. Nature of Charged Expenditure:
   • Certain expenditures, such as the salaries and allowances of the President, the Vice President, the Comptroller and Auditor General of India, and the Judges of the Supreme Court and High Courts, are considered charged on the Consolidated Fund.
3. Enactment Process:
   • Charged expenditure is not voted upon annually in Parliament but is automatically charged on the Consolidated Fund through the Constitution.
4. No Legislative Intervention:
   • The charged expenditure does not go through the regular legislative process of approval each year.

Grants:

1. Definition:
   • Grants refer to the provision of funds by Parliament to meet government expenditures for a specific purpose during a financial year.
2. Classification of Grants:
   • Grants are classified into two types:
     • Vote on Account: Provisional parliamentary approval for a part of the total estimated expenditure until the full budget is passed.
     • Appropriation Bill: Legislation that gives parliamentary approval for the actual expenditure as detailed in the budget.

Stages in Enactment of Grants:

A. Presentation of the Budget:

• The government presents the annual budget, which includes estimates of revenue and expenditure, to the Lok Sabha.

B. Discussion and Approval:

• The Lok Sabha discusses the budget proposals, and members have the opportunity to raise questions and seek clarifications.

C. Vote on Account:

• Before the full budget is approved, a Vote on Account may be sought to cover the expenditure for a specified period.

D. Parliamentary Committees:

• Parliamentary committees, such as the Public Accounts Committee (PAC) and the Estimates Committee, scrutinize the budget estimates.

E. Introduction of Appropriation Bill:

• After the discussions and committee scrutiny, the Appropriation Bill is introduced in Parliament.

F. Consideration in Both Houses:

• The Appropriation Bill is discussed and voted upon in both houses of Parliament. It includes detailed allocations for various ministries and departments.

G. Approval and Assent:

• If both houses approve the Appropriation Bill, it is sent to the President for assent.

H. Release of Funds:

• After the President’s assent, funds are released for the approved expenditures.

I. Implementation and Reporting:

• The government implements the budgetary allocations during the financial year, and periodic reports on expenditure are presented to Parliament.

Additional Points:

• Supplementary Grants:
  • In case of unforeseen expenditures or the need for additional funds, the government may seek supplementary grants. These also go through the legislative approval process.
• Audit and Accountability:
  • The expenditures approved by Parliament are subject to audit by the Comptroller and Auditor General of India (CAG), ensuring financial accountability.

Understanding the stages in the enactment of charged expenditure and grants in the Indian Parliament is crucial for ensuring financial discipline, parliamentary oversight, and transparency in government spending. The budgetary process plays a fundamental role in the functioning of a democratic government by facilitating the allocation of resources for the implementation of policies and programs.