Article 115 of the Indian Constitution addresses unforeseen financial needs that may arise during a financial year. It empowers the Parliament to authorize additional expenditures beyond the amount already sanctioned in the annual budget (or Appropriation Act). This ensures that the government can effectively respond to emergent situations or unexpected requirements without disrupting essential functions or developmental projects. The article provides mechanisms for seeking parliamentary approval for these supplementary, additional, or excess grants, maintaining financial accountability and parliamentary oversight.
Original Text
(1) If the amount authorized 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 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,
the President shall 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.
(2) The provisions of articles 112, 113 and 114 shall have effect in relation to any statement and demand so laid or presented as they have effect in relation to the annual financial statement and the demand for grants.
Detailed Explanation
Article 115 of the Indian Constitution provides the procedure for dealing with situations where the funds allocated through the annual budget (Appropriation Act) prove to be insufficient or when new expenditure needs arise during the financial year. This article outlines the processes for obtaining parliamentary approval for Supplementary, Additional and Excess Grants.
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Supplementary Grant: This is needed when the initial grant for a particular service proves insufficient to meet the expenditure requirements for the financial year.
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Additional Grant: This is required when a need arises during the financial year for expenditure on a new service not contemplated in the annual financial statement. Essentially, it covers unforeseen or unanticipated expenditure items.
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Excess Grant: This arises when the expenditure on any service during a financial year exceeds the amount granted by the Parliament for that service. This essentially represents unauthorized expenditure and requires ex post facto approval from the Parliament.
The President, acting on the advice of the government, presents a statement of the estimated additional expenditure to both houses of Parliament (in the case of Supplementary or Additional grants) or a demand for excess expenditure is presented to the Lok Sabha. The procedures for approving these grants follow the same process as the annual budget, including debates, voting, and the enactment of an Appropriation Act. This ensures that Parliament retains control over government spending, even when unforeseen circumstances arise.
Detailed Notes
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Triggering Events:
- Insufficient Funds (Supplementary Grant): The amount sanctioned for a specific service in the current financial year is inadequate.
- New Service (Additional Grant): A need arises for expenditure on a new service not initially included in the annual financial statement.
- Excess Expenditure (Excess Grant): Money has been spent on a service exceeding the approved amount for that financial year.
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Presidential Action:
- The President causes a statement of estimated additional expenditure to be laid before both Houses of Parliament (for Supplementary or Additional Grants).
- The President causes a demand for excess expenditure to be presented to the Lok Sabha (for Excess Grant).
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Parliamentary Procedure:
- The procedures outlined in Articles 112, 113, and 114 apply to the statement and demand presented under Article 115.
- This includes:
- Presentation of the statement to Parliament
- Debate and voting on the demands for grants in the Lok Sabha
- Enactment of an Appropriation Act authorizing the expenditure
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Types of Grants:
- Supplementary Grant: To meet expenditure needs that exceed the original allocation.
- Additional Grant: To finance a new service not envisioned during the budget preparation.
- Excess Grant: To regularize expenditure that has already been incurred in excess of the sanctioned amount. It is presented to the Lok Sabha after the Public Accounts Committee (PAC) scrutinizes it and makes recommendations.
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Role of Public Accounts Committee (PAC):
- The PAC examines the excess expenditure before the demand for excess grant is presented to the Parliament.
- It scrutinizes the circumstances leading to the excess expenditure and makes recommendations to the Parliament.
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Financial Accountability:
- Article 115 ensures parliamentary control over government spending, even for unforeseen expenditure.
- It maintains financial accountability by requiring the government to seek parliamentary approval for any expenditure beyond the approved budget.
Additional Comments
- The demand for an ’excess grant’ is voted on by the Lok Sabha only after the financial year.
- Article 115 works in conjunction with other articles related to financial procedures, ensuring a comprehensive framework for managing public finances.
- The article reinforces the principle of parliamentary supremacy in financial matters.
Summary
Article 115 empowers the President to present statements or demands to the Parliament for Supplementary, Additional, or Excess Grants when the approved budget proves inadequate or new expenditures arise. The parliamentary procedure for these grants mirrors that of the annual budget, emphasizing financial accountability and control. The Excess Grant is presented after PAC review.