Polity
Parliament
Budget in Parliament and Parliamentary Devices
Annual Financial Statement, stages of the budget, cut motions, grants under Arts 115-116, Question Hour, Zero Hour and motions for CGPSC Prelims and Mains.
Prerequisites
- Legislative Procedure — Money Bills and Financial Bills; the Finance Bill and Appropriation Bill are both Money Bills.
- Lok Sabha and Rajya Sabha — why only the Lok Sabha votes on grants.
- Public Finance — fiscal deficit and the content of the budget (economics side).
The Hook: The Day Before Payday
Connect
Every 1 February, the Union Finance Minister rises in the Lok Sabha to present the budget. In Chhattisgarh, the State Finance Minister does the same in the Vidhan Sabha a few weeks later. The speech gets the headlines, but the speech alone cannot spend a single rupee. Until Parliament passes an Appropriation Act, not one paisa can leave the Consolidated Fund of India, whether for a highway in Bastar or the salary of a soldier.
How does Parliament keep this power of the purse, and how does it hold the government answerable every day it sits? This page covers both the financial procedure and the devices of accountability.
Why it matters: Prelims tests the cut motions, the kinds of grants, charged expenditure and the rules for motions. Mains asks how effectively Parliament controls the executive.
Part A: Financial Procedure
Three funds (Arts 266, 267)
| Fund | Article | Key point |
|---|---|---|
| Consolidated Fund of India (भारत की संचित निधि) | 266(1) | All revenues, loans raised and loan repayments received. No money can be withdrawn without a law of Parliament (appropriation) |
| Public Account of India | 266(2) | Money held by the government as a banker or trustee (provident funds, small savings deposits). Withdrawals are executive action; no appropriation needed |
| Contingency Fund of India | 267 | An imprest at the disposal of the President for unforeseen expenditure pending authorisation by Parliament. Created by the Contingency Fund of India Act, 1950. Corpus ₹30,000 crore (raised from ₹500 crore by the Finance Act, 2021) |
The Budget: Annual Financial Statement (Art 112)
- The Constitution never uses the word “budget”. Article 112 calls it the Annual Financial Statement (वार्षिक वित्तीय विवरण): a statement of estimated receipts and expenditure of the Government of India for the financial year.
- It is laid “in respect of every financial year” by the President (in practice, by the Finance Minister).
- Since 2017: presented on 1 February (earlier, the last working day of February), and the separate Railway Budget (separated in 1924 on the Acworth Committee recommendation) was merged with the General Budget.
Charged vs voted expenditure
| Charged on the Consolidated Fund (Art 112(3)) | Voted (made from the Consolidated Fund) |
|---|---|
| Discussed but not voted by Parliament | Must be voted by the Lok Sabha as Demands for Grants |
| Includes: emoluments and allowances of the President; salaries of the Chairman and Deputy Chairman of the Rajya Sabha and the Speaker and Deputy Speaker of the Lok Sabha; salaries, allowances and pensions of Supreme Court judges; pensions of High Court judges; salary of the CAG; salaries of the UPSC chairman and members; debt charges; sums for court decrees or awards | All other expenditure: ministries’ schemes, salaries of the Council of Ministers and civil servants, and so on |
Why charge some expenditure?
Charging protects the independence of offices such as judges, the CAG and the UPSC. Their salaries cannot be held hostage to a vote. Note: High Court judges’ salaries are charged on the Consolidated Fund of the State, but their pensions are charged on the Consolidated Fund of India.
Six stages of the budget
graph TD
A["1. Presentation
(Finance Minister's speech; 1 February)"] --> B["2. General discussion
Both Houses; no vote, no cut motions"]
B --> C["3. Scrutiny by Departmental
Standing Committees
(House adjourned meanwhile)"]
C --> D["4. Voting on Demands for Grants
Lok Sabha only; cut motions;
guillotine on the last day"]
D --> E["5. Appropriation Bill (Art 114)
Authorises withdrawal from
the Consolidated Fund"]
E --> F["6. Finance Bill
Gives effect to tax proposals;
enacted within 75 days"]- Voting on Demands for Grants is the Lok Sabha’s exclusive privilege (Art 113). Demands are presented ministry-wise. The Lok Sabha can assent, refuse, or reduce a demand, but cannot increase it.
- Guillotine: on the last day allotted, the Speaker puts all outstanding demands to vote together, whether discussed or not.
- Appropriation Bill: no amendment can be proposed that would vary the amount or alter the destination of a grant, or vary charged expenditure.
- Finance Bill: under the Provisional Collection of Taxes Act, 1931, it must be enacted (passed and assented to) within 75 days of introduction.
Cut motions (कटौती प्रस्ताव) — high-yield
| Cut motion | Amount | Purpose |
|---|---|---|
| Policy cut | Demand reduced to ₹1 | Expresses disapproval of the policy behind the demand; the member may suggest an alternative policy |
| Economy cut | Reduced by a specified amount | Suggests an economy in expenditure |
| Token cut | Reduced by ₹100 | Ventilates a specific grievance within the ministry’s responsibility |
Cut motions can be moved only in the Lok Sabha and only on voted demands. If a cut motion is passed, it is treated as a defeat of the government, which would then have to prove its majority. In practice they are a tool for focused debate.
Other grants (Arts 115, 116)
| Grant | Article | When used |
|---|---|---|
| Supplementary grant | 115 | Amount authorised for a service is insufficient for the current year |
| Additional grant | 115 | Need for expenditure on a new service not in the budget |
| Excess grant | 115 | Spent more than granted in a year. The demand is voted after the year, and only after approval by the Public Accounts Committee |
| Vote on account | 116 | Advance grant for part of a year pending completion of the budget procedure; usually for two months, longer in an election year (with an interim budget) |
| Vote of credit | 116 | A blank cheque for an unforeseen demand whose magnitude or nature cannot be stated precisely |
| Exceptional grant | 116 | For a purpose that is not part of the current service of any financial year |
| Token grant | — | For a new service whose cost can be met by re-appropriation; a token sum is voted so that Parliament’s sanction is recorded |
Vote on account vs interim budget
A vote on account deals only with the expenditure side (withdrawal for a few months). An interim budget is a complete statement of expenditure and receipts presented by an outgoing government before an election; Parliament passes a vote on account along with it.
Part B: Parliamentary Devices (Accountability Tools)
Question Hour (प्रश्नकाल)
The first hour of every sitting (in both Houses) is normally Question Hour, when members ask ministers questions.
| Type | Answer | Supplementaries? | Notice |
|---|---|---|---|
| Starred (marked with an asterisk) | Oral | Yes | Normal (at least 10 days, by rule) |
| Unstarred | Written | No | Normal |
| Short notice | Oral | Yes | Less than 10 days, on an urgent matter of public importance; the minister may decline |
Questions can also be addressed to private members on a bill, resolution or matter for which they are responsible.
Zero Hour (शून्य काल)
- Starts immediately after Question Hour (around 12 noon), hence the name; it lasts until the regular agenda is taken up.
- An Indian innovation, in practice since 1962. It is not mentioned in the Rules of Procedure: it is an informal device for raising urgent matters without prior notice.
Motions and other devices
| Device | House | Key features |
|---|---|---|
| Adjournment motion (स्थगन प्रस्ताव) | Lok Sabha only | Draws attention to a definite, factual, urgent matter of public importance. Needs the support of 50 members. Involves an element of censure, so the Rajya Sabha cannot use it. Debate of at least two and a half hours |
| Calling attention motion (ध्यानाकर्षण प्रस्ताव) | Both | Calls a minister’s attention to an urgent matter; minister makes an authoritative statement. Indian innovation since 1954; is in the Rules |
| No-confidence motion (अविश्वास प्रस्ताव) | Lok Sabha only | Under Rule 198; needs 50 members’ support; no reasons need be stated; against the whole Council of Ministers. If passed, the government must resign |
| Censure motion | Lok Sabha | Reasons must be stated; can be against a minister or group of ministers or the whole Council. If passed, the government is not obliged to resign but must seek the House’s confidence |
| Confidence motion | Lok Sabha | Moved by the government to prove its majority. Governments that lost one: V.P. Singh (1990), H.D. Deve Gowda (1997), A.B. Vajpayee (1999, by one vote) |
| Motion of Thanks | Both | On the President’s address (Art 87); its defeat is a defeat of the government |
| Privilege motion | Both | Against a minister (or member) for breach of privilege, e.g. withholding or distorting facts |
| Closure motion | Both | To cut short debate: simple, compartment (clauses grouped), kangaroo (only important clauses taken up, others skipped) and guillotine |
| Point of order | Both | Raised when proceedings depart from the rules; the presiding officer rules on it; no debate |
| Half-an-hour discussion | Both | On a matter of sufficient public importance arising from an answer to a question |
| Short duration discussion | Both | “Two-hour discussion”, e.g. under Rule 193 in the Lok Sabha; no formal motion before the House, so no vote |
| Rule 377 (Lok Sabha) / Special Mention (Rajya Sabha) | Each | Raising a matter that is not a point of order or question |
Collective responsibility in practice
Article 75(3) makes the Council of Ministers collectively responsible to the Lok Sabha, but the no-confidence motion is not mentioned in the Constitution; it comes from the Rules of Procedure (Rule 198). The first no-confidence motion was moved in August 1963 against the Nehru government by J.B. Kripalani. The most recent (as of 2026) was in August 2023, defeated by voice vote.
Parliament’s tools of executive control (Mains)
| Tool | Limits in practice |
|---|---|
| Questions, Zero Hour, calling attention | Disruptions and adjournments eat into Question Hour |
| Debates, motions, no-confidence | Strong majorities make defeat unlikely; anti-defection whip curbs dissent |
| Budget control: demands, cut motions | Guillotine passes most demands without discussion |
| Committees (PAC, Estimates, DRSCs) | Advisory only; fewer bills referred in recent Lok Sabhas (see committees) |
| Assurances, subordinate legislation scrutiny | Implementation of assurances often delayed |
Chhattisgarh angle
The Chhattisgarh Vidhan Sabha runs the same machinery under Articles 202–207: the state’s Annual Financial Statement, voting on demands by the Assembly, Appropriation and Finance Bills, Question Hour and calling attention notices, and its own Public Accounts Committee. A Mains answer on legislative control can use a line on how the state Assembly scrutinises spending on schemes such as paddy procurement. See State Government.
Memory Tricks
Cut motions: '1-Policy, Specific-Economy, 100-Token'
Reduce to ₹1 to reject a Policy (the whole thing is nearly zeroed). Cut a specified amount to save money (Economy). Cut ₹100 to make a Token protest about one grievance.
Grants by article
- Art 115 “SAE” — Supplementary, Additional, Excess.
- Art 116 “VVE” — Vote on account, Vote of credit, Exceptional.
- Excess goes through PAC.
Indian innovations
“54 Calls, 62 Zeroes”: Calling attention (1954), Zero Hour (1962).
Don’t Confuse
| This | vs | That |
|---|---|---|
| No-confidence motion — no reasons; whole Council; must resign if passed | vs | Censure motion — reasons needed; minister(s) or Council; not bound to resign |
| No-confidence — moved by the opposition | vs | Confidence motion — moved by the government |
| Adjournment motion — Lok Sabha only; 50 members; element of censure | vs | Calling attention — both Houses; no censure; in the Rules |
| Zero Hour — not in the Rules (since 1962) | vs | Question Hour — governed by the Rules; first hour |
| Starred — oral, supplementaries | vs | Unstarred — written, no supplementaries |
| Charged expenditure — discussed, not voted | vs | Voted expenditure — Demands for Grants, Lok Sabha only |
| Consolidated Fund — needs appropriation by law | vs | Public Account — executive withdrawal; Contingency Fund — President’s imprest |
Common Mistakes
MCQ traps
- “The word ‘budget’ appears in Article 112.” False. The Constitution says Annual Financial Statement.
- “Charged expenditure cannot be discussed in Parliament.” False. It can be discussed but not voted upon.
- “The Rajya Sabha votes on Demands for Grants.” False. Only the Lok Sabha votes on them; the Rajya Sabha only discusses the budget.
- “A no-confidence motion is provided in Article 75.” False. Art 75(3) states collective responsibility; the motion itself is in the Rules of Procedure.
- “A token cut reduces the demand to ₹1.” False. That is a policy cut; the token cut is ₹100.
- “The Lok Sabha can increase a Demand for Grant.” False. It can only assent, reduce or refuse.
Practice
All questions below are original practice questions written in CGPSC style. They are not previous-year questions.
Level 1: Foundation
- The Constitution calls the budget the ______ (Article 112).
- A cut motion reducing a demand by ₹100 is called a ______ cut.
- Zero Hour has been in practice since the year ______.
- A no-confidence motion needs the support of at least ______ members.
Answers
- Annual Financial Statement.
- Token cut.
- 1962.
- 50 members.
Level 2: Prelims MCQs
Q1. Consider the following statements:
- Expenditure charged on the Consolidated Fund of India is not submitted to the vote of Parliament but can be discussed.
- The salary of the Speaker of the Lok Sabha is charged on the Consolidated Fund of India.
- The salaries of High Court judges are charged on the Consolidated Fund of India.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 1 and 2 only
- (c) 2 and 3 only
- (d) 1, 2 and 3
Answer and explanation
(b) 1 and 2 only. Charged expenditure is discussed but not voted (Art 113(1)). The Speaker’s salary is charged (Art 112(3)). High Court judges’ salaries are charged on the Consolidated Fund of the State; only their pensions are charged on the Consolidated Fund of India.
Q2. Match List I (Device) with List II (Feature):
| List I | List II |
|---|---|
| A. Policy cut | 1. Demand reduced by ₹100 |
| B. Token cut | 2. Grant for expenditure whose nature cannot be stated precisely |
| C. Vote of credit | 3. Demand reduced to ₹1 |
| D. Excess grant | 4. Voted only after approval by the Public Accounts Committee |
- (a) A-3, B-1, C-4, D-2
- (b) A-1, B-3, C-2, D-4
- (c) A-3, B-1, C-2, D-4
- (d) A-3, B-2, C-1, D-4
Answer and explanation
(c) A-3, B-1, C-2, D-4. Policy cut = ₹1; token cut = ₹100; vote of credit = a “blank cheque” (Art 116); excess grant = voted after the year once the PAC approves it (Art 115).
Q3. Which of the following is correctly described as an Indian innovation not mentioned in the Rules of Procedure?
- (a) Calling attention motion
- (b) Zero Hour
- (c) Question Hour
- (d) Adjournment motion
Answer and explanation
(b) Zero Hour. It has been practised since 1962 but is not in the Rules. The calling attention motion is also an Indian innovation (1954), but it is provided in the Rules, which makes (a) the trap option.
Q4. Which one of the following statements about the adjournment motion is correct?
- (a) It can be moved in both Houses of Parliament
- (b) It needs the support of 50 members and involves an element of censure against the government
- (c) It must be moved to discuss any matter, however old, if the Speaker permits
- (d) It is the same as a motion of no-confidence
Answer and explanation
(b). The adjournment motion is admitted only in the Lok Sabha, needs 50 members, and concerns a definite, factual and urgent matter. Because it carries an element of censure, the Rajya Sabha does not use it. It does not, however, bring down the government as a no-confidence motion can.
Q5. Under which Article does Parliament grant a “vote on account”?
- (a) Article 112
- (b) Article 114
- (c) Article 115
- (d) Article 116
Answer and explanation
(d) Article 116, which also covers votes of credit and exceptional grants. Art 112 is the Annual Financial Statement, Art 114 the Appropriation Bill, Art 115 supplementary, additional and excess grants.
Level 3: Mains Answer Writing
Q1. (150–200 words) Explain the stages through which the Union Budget passes in Parliament. How far does Parliament exercise real financial control?
Model answer outline
- Intro: Art 112 (Annual Financial Statement) and Art 114 (no withdrawal without appropriation by law) give Parliament the power of the purse.
- Stages: presentation; general discussion; DRSC scrutiny; voting on Demands for Grants (Lok Sabha, cut motions); Appropriation Bill; Finance Bill (75 days).
- Strengths: DRSC scrutiny since 1993; PAC examination of CAG reports after the year; cut motions focus debate.
- Weaknesses: guillotine passes many demands undiscussed; charged expenditure is non-votable; strong majorities and party whips; limited time; ex-post nature of audit.
- Chhattisgarh angle: the same weaknesses appear in state Assemblies; the Vidhan Sabha’s PAC and the CAG’s state audit reports are the main checks.
- Way forward: more days for demands, pre-budget committee consultation, a parliamentary budget office.
- Conclusion: control is real in form, partial in substance.
Q2. (60–80 words) Distinguish between a no-confidence motion and a censure motion.
Model answer outline
- No-confidence: Lok Sabha; Rule 198; 50 members; no reasons; against the whole Council of Ministers; if passed, it must resign.
- Censure: reasons stated; may target individual ministers or policies; passing it obliges the government to seek a confidence vote, not to resign automatically.
- Both enforce collective responsibility under Art 75(3).
Quick Revision Table
| Fact | Detail |
|---|---|
| Art 112 | Annual Financial Statement |
| Art 113 | Demands for Grants; charged items not voted |
| Art 114 | Appropriation Bill |
| Art 115 / 116 | Supplementary, additional, excess / vote on account, vote of credit, exceptional |
| Art 266 / 267 | Consolidated Fund and Public Account / Contingency Fund (₹30,000 crore since 2021) |
| Budget date | 1 February since 2017; Railway Budget merged 2017 |
| Finance Bill | Within 75 days (Provisional Collection of Taxes Act, 1931) |
| Cut motions | Policy ₹1, Economy specified, Token ₹100 |
| Guillotine | All remaining demands voted together on the last day |
| Question Hour | First hour; starred (oral), unstarred (written), short notice (< 10 days) |
| Zero Hour | Since 1962; not in the Rules |
| Calling attention | Since 1954; in the Rules |
| Adjournment motion | Lok Sabha; 50 members; censure element |
| No-confidence | Lok Sabha; Rule 198; 50 members; first in 1963 (Kripalani) |
Key Takeaways
Key Takeaways
- No money leaves the Consolidated Fund without an Appropriation Act; taxes need the Finance Act.
- The Lok Sabha alone votes on demands, and can reduce but not increase them. Charged expenditure is discussed, not voted.
- Cut motions: policy ₹1, economy specified, token ₹100.
- Grants: Art 115 (supplementary, additional, excess via PAC) and Art 116 (vote on account, vote of credit, exceptional).
- Question Hour, Zero Hour and motions enforce collective responsibility (Art 75(3)); the no-confidence motion lives in the Rules, not the Constitution.
What’s Next
- Parliamentary Committees — PAC, Estimates Committee and DRSCs, where budget scrutiny really happens
- Constitutional Bodies — the CAG, whose reports the PAC examines
- Public Finance — fiscal deficit, FRBM and the economics of the budget
- Union Executive — the Council of Ministers that these devices hold to account
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