Q. Consider the following statements:
1.Demands for Grants are the proposals made by the government for the allocation of funds to various ministries and departments.
2.Estimates Committee in the Parliament scrutinizes the Demands for Grants for each ministry.
3.If a Demand for Grant is not approved by the Parliament, the Finance Minister can reallocate funds from other grants.
4.The Appropriation Bill seeks to withdraw money from the Consolidated Fund of India to meet the approved demands.
How many of the statements given above are correct?
Explanation –
Statements 1 and 4 are correct. Demands for Grants are formal requests for funds made by various ministries or departments of the government as part of the annual budgetary process. The Appropriation Bill authorizes the government to withdraw funds from the Consolidated Fund of India to meet the expenditures approved by Parliament through the Demands for Grants.
Statements 2 and 3 are incorrect. It is the Departmental Standing Committees that scrutinize the Demands for Grants for each ministry. If a Demand for Grant is not approved by the Parliament, the Finance Minister cannot unilaterally reallocate funds from other grants. If a Demand for Grant is not approved by the Parliament, the concerned ministry or department will not receive funds for that fiscal year. Any reallocation or additional expenditure requires approval through supplementary grants or re-appropriation approved by Parliament.
Source: AIR
