Votes on account, votes of credit and exceptional grants
Article 206 — Votes on account, votes of credit and exceptional grants
Notwithstanding anything in the foregoing provisions of this Chapter, the Legislative Assembly of a State shall have power—
- (a) to make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in article 203 for the voting of such grant and the passing of the law in accordance with the provisions of article 204 in relation to that expenditure;
- (b) to make a grant for meeting an unexpected demand upon the resources of the State when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an annual financial statement;
- (c) to make an exceptional grant which forms no part of the current service of any financial year, and the Legislature of the State shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of the State for the purposes for which the said grants are made. (2) The provisions of articles 203 and 204 shall have effect in relation to the making of any grant under clause (1) and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made
for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure.
Plain English Summary
This article gives the State Legislative Assembly the power to make special financial grants in advance or for unexpected needs that cannot be detailed in the regular budget. It also allows the state to authorize taking money from its main fund (Consolidated Fund) for these specific purposes.
Key Points
- State Legislatures can grant money in advance for part of a financial year's estimated spending, provided the proper procedures are followed.
- They can make grants for unexpected demands where the service details are too large or indefinite to be specified in the annual budget.
- The State Legislature can pass laws authorizing the withdrawal of money from the State's main fund for these special grants.
- Exceptional grants are those that do not form part of the regular financial year's work.
Why It Matters
This article ensures that state governments have the flexibility to manage unforeseen expenses or urgent needs without waiting for the full annual budget process, ensuring essential services can be funded promptly.
Landmark Judgements
No major landmark judgements.