Articles 115 and 116 of the Constitution of India: Supplementary Grants, Vote on Account, Vote of Credit and Exceptional Grants

Constitutional provisions checked against the official text available from the Legislative Department and India Code.

Articles 115 and 116 form part of the constitutional framework governing Union finances. Article 115 deals with supplementary, additional and excess grants when the amount already authorised is insufficient, a new service requires expenditure, or expenditure has exceeded the amount granted. Article 116 enables the House of the People to make a vote on account, a vote of credit or an exceptional grant in the circumstances specified by the Constitution.

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Article 115 - Supplementary, additional or excess grants

Article 115 provides the constitutional procedure for expenditure that was not adequately covered by the amount already authorised for the financial year, for supplementary or additional expenditure on a new service, and for expenditure already incurred in excess of the amount granted.

Article 115(1)

The President shall -

(a) if the amount authorised by any law made in accordance with the provisions of Article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year; or

(b) if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year,

cause to be laid before both the Houses of Parliament another statement showing the estimated amount of that expenditure or cause to be presented to the House of the People a demand for such excess, as the case may be.

Article 115(2)

The provisions of Articles 112, 113 and 114 apply to such statement, expenditure or demand, and to the law authorising appropriation from the Consolidated Fund of India, in the same constitutional manner in which they apply to the annual financial statement, demands for grants and appropriation.

What are supplementary, additional and excess grants?

Supplementary grant: A further grant required when the amount already authorised for a particular service in the current financial year is insufficient.

Additional expenditure: Expenditure required during the current financial year for a new service not contemplated in the annual financial statement for that year.

Excess grant: A demand relating to money already spent on a service during a financial year in excess of the amount granted for that service and year.

Article 115 does not operate in isolation. Clause (2) expressly applies the financial procedure in Articles 112, 113 and 114 to the relevant statement, demand and appropriation.

Article 116 - Votes on account, votes of credit and exceptional grants

Article 116 begins with a non-obstante clause and gives the House of the People specified powers to make grants in advance or to meet special financial situations. Parliament may authorise by law withdrawal from the Consolidated Fund of India for the purposes for which these grants are made.

Article 116(1)

Notwithstanding anything in the foregoing provisions of this Chapter, the House of the People shall have power -

(a) Vote on account: to make any grant in advance in respect of the estimated expenditure for a part of any financial year pending completion of the procedure prescribed in Article 113 for voting the grant and passing the law in accordance with Article 114 in relation to that expenditure;

(b) Vote of credit: to make a grant for meeting an unexpected demand upon the resources of India when, because of the magnitude or indefinite character of the service, the demand cannot be stated with the details ordinarily given in an annual financial statement;

(c) Exceptional grant: to make an exceptional grant which forms no part of the current service of any financial year.

Parliament has power to authorise by law the withdrawal of moneys from the Consolidated Fund of India for the purposes for which these grants are made.

Article 116(2)

The provisions of Articles 113 and 114 apply to a grant under Article 116(1), and to the law made under that clause, in the same manner as they apply to grants concerning expenditure in the annual financial statement and the appropriation law for meeting that expenditure.

Meaning of vote on account, vote of credit and exceptional grant

Vote on account: A grant in advance for estimated expenditure for part of a financial year while the ordinary procedure for voting grants and passing the appropriation law is being completed.

Vote of credit: A grant to meet an unexpected demand on the resources of India where the magnitude or indefinite character of the service makes the usual detailed statement impracticable.

Exceptional grant: A grant for a purpose that forms no part of the current service of any financial year.

Legal reference:

This page is an explanatory guide. For authoritative wording and the latest official constitutional text, refer to the Legislative Department, Ministry of Law and Justice, and India Code.