Economy

Budget 2019: What does Demand for Grants mean?

Updated : January 31, 2019 02:18 PM IST

The demand for grants is typically an annual expenditure plan of each ministry for the financial year.

The Modi government will announce the Interim Budget on Friday.

Demand for grants is the term used for estimates of expenditure from the Consolidated Fund. The document, which is required Lok Sabha's approval is submitted along with the Annual Financial Statement document.

The Narendra Modi government will announce the Interim Budget on Friday.

According to the trend seen in the previous Budgets, only one Demand for Grant is presented by each Ministry or Department. However, if required, the Ministry or Department can present more than demand for grant based on the what the expenditure is.

The demand for grants is typically an annual expenditure plan of each ministry for the financial year. For Union Territories which do not have Legislature, separate demand is presented.

The demands are required to give the total amount of voted and charged expenditure, revenue and capital expenditure and the grand total of the expenditure.

Non-voted or charged expenditures are those where no voting in the parliament takes place for the amount involved under this category while voted expenditure are those which require the parliament voting expenditure.

Under charged expenditures, the salary of the President, and other top government officials and the debt of the government are included while the rest come under the voted expenditures.

The voted expenditures have to take note of how the amount will be recovered as well. The recoveries are also included in the document.

After the expenditures are presented, it will be placed under the heads of account from which the breakup of the expenditure under each major head between 'Plan' and 'Non-Plan' will be given.