Articles 112, 113 and 114 of the Constitution of India: Annual Financial Statement, Estimates and Appropriation Bills
Articles 112 to 114 form part of the constitutional procedure for Union finances. They explain how the Government of India's estimated receipts and expenditure are placed before Parliament, how expenditure is considered through demands for grants, and how money is authorised for withdrawal from the Consolidated Fund of India.
Article 112 - Annual Financial Statement
Meaning: Article 112 requires the President, for every financial year, to cause a statement of the estimated receipts and expenditure of the Government of India to be laid before both Houses of Parliament. The Constitution calls this statement the annual financial statement.
Article 112(1): The President shall, in respect of every financial year, cause to be laid before both Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year.
Article 112(2): The expenditure estimates must separately show:
- sums required for expenditure charged upon the Consolidated Fund of India; and
- sums required for other expenditure proposed from the Consolidated Fund of India.
The estimates must also distinguish expenditure on revenue account from other expenditure.
Article 112(3): Expenditure charged on the Consolidated Fund includes, among other constitutional items, expenditure relating to the office of the President; salaries and allowances of specified presiding officers of Parliament; Union debt charges; specified judicial salaries and pensions; the salary, allowances and pension of the Comptroller and Auditor-General of India; sums required to satisfy judgments, decrees or arbitral awards; and any other expenditure declared by the Constitution or by Parliament by law to be charged.
Article 113 - Procedure in Parliament with respect to estimates
Meaning: Article 113 distinguishes between charged expenditure and other expenditure. Charged expenditure may be discussed in either House but is not submitted to Parliament for a vote. Other expenditure is submitted as demands for grants to the House of the People (Lok Sabha).
Article 113(1): Estimates relating to expenditure charged upon the Consolidated Fund of India are not submitted to the vote of Parliament, although they may be discussed in either House.
Article 113(2): Other expenditure is submitted as demands for grants to the Lok Sabha. The Lok Sabha may assent to a demand, refuse it, or assent subject to a reduction in the amount.
Article 113(3): No demand for a grant may be made except on the recommendation of the President.
Article 114 - Appropriation Bills
Meaning: After grants under Article 113 have been made by the Lok Sabha, an Appropriation Bill is introduced to provide legal authority for appropriation from the Consolidated Fund of India for the grants and for charged expenditure within the constitutional limits.
Article 114(1): After the grants under Article 113 have been made, a Bill is introduced to provide for appropriation out of the Consolidated Fund of India of money required to meet the grants and the expenditure charged on that Fund, subject to the amount shown in the statement laid before Parliament.
Article 114(2): An amendment to such a Bill cannot vary the amount or alter the destination of a grant, or vary the amount of charged expenditure. The decision of the presiding person on whether an amendment is inadmissible under this clause is final.
Article 114(3): Subject to Articles 115 and 116, money cannot be withdrawn from the Consolidated Fund of India except under an appropriation made by law in accordance with Article 114.
How Articles 112, 113 and 114 work together
The three provisions create a connected constitutional sequence. First, the annual financial statement places the Union's estimated receipts and expenditure before Parliament under Article 112. Next, Article 113 governs consideration of the expenditure estimates: charged expenditure is discussed but not voted upon, while other expenditure is presented to the Lok Sabha as demands for grants. Finally, Article 114 provides for the Appropriation Bill, through which Parliament gives statutory authority for the specified withdrawals from the Consolidated Fund of India.
These provisions should also be read with Articles 109, 110 and 111 on Money Bills and assent to Bills, Articles 115 and 116 on supplementary grants, votes on account, votes of credit and exceptional grants, and Articles 117 to 119 on financial Bills and parliamentary procedure.
This page is an explanatory legal reference. For authoritative text, consult the current official Constitution of India published by the Legislative Department or India Code.