Part V: The Union

Procedure in Financial Matters

Article 115: Supplementary, Additional or Excess Grants

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(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.

(2) The provisions of articles 112, 113 and 114 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant.

Explanations

Article 115 of the Constitution of India provides a legal mechanism for supplementary, additional, or excess grants when the authorized amount for a particular service is found insufficient or when new expenditures arise during the financial year. It ensures that any unanticipated or excess expenditure is properly accounted for and approved by Parliament, thus safeguarding financial transparency and accountability within government expenditure.

Clause-by-Clause Explanation

Clause (1): Presidential Responsibility for Supplementary and Excess Grants

This clause mandates the President to take necessary actions if the authorized budget for any government service is found insufficient during the financial year or if new services require additional funding. The President must present a supplementary or additional statement before both Houses of Parliament, showing the estimated expenditure. In cases where money has been spent in excess of the original budget, a demand for the excess amount must be presented to the House of the People (Lok Sabha).

Clause (2): Application of Articles 112, 113, and 114 to Supplementary Grants

This clause extends the procedural requirements of Articles 112, 113, and 114 to supplementary and excess expenditure. These articles relate to the annual financial statement, procedures for parliamentary approval of budgetary estimates, and appropriation bills. The same principles apply to supplementary grants to ensure consistency in the management of public funds.

Real-Life Examples

• During the COVID-19 pandemic, the government had to undertake unplanned health expenditures. The original budget was deemed insufficient, and supplementary grants were presented to Parliament to cover these unplanned expenses, ensuring transparency and accountability.

Historical Significance

Historically, this article has played a crucial role in India's financial governance, especially during unforeseen national crises such as natural disasters, economic recessions, or pandemics. The provision ensures that necessary funds can be mobilized quickly while maintaining parliamentary oversight, preventing unauthorized expenditure.

Legislative History

Article 115 of the Indian Constitution, originally drafted and debated as article 95 of the Draft Constitution, was subsequently incorporated into the final text of the Indian Constitution on June 10, 1949.

Debates and Amendments

Dr. B. R. Ambedkar, as the Chairman of the Drafting Committee, proposed the introduction of supplementary, additional, or excess grants to address unexpected financial needs during the fiscal year. He emphasized the importance of this mechanism in allowing the government to request additional funds if the allocated budget proved insufficient, while still adhering to the parliamentary scrutiny process outlined in Articles 112, 113, and 114.

Shri R. K. Sidhwa moved an amendment to Dr. Ambedkar’s proposal, advocating for stricter controls over supplementary grants. He expressed concern that the executive branch might overspend without proper parliamentary oversight, which could undermine fiscal discipline. Sidhwa argued that no supplementary or excess expenditure should be incurred without obtaining approval from both Houses of Parliament in advance. However, his amendment was not accepted by the assembly.

Prof. Shibban Lal Saksena proposed an amendment to alter the financial year to run from November 1st to October 31st, reasoning that it would align with better fiscal scrutiny and traditional financial practices. His proposal sought to allow Parliament more time to review the financial statement during a less congested part of the year. Despite his reasoning, this amendment was also rejected.

Dr. B. R. Ambedkar defended the provisions of supplementary grants, arguing that they were essential to maintain government functioning during unforeseen circumstances. He explained that while concerns about financial mismanagement were valid, the safeguards built into the Constitution ensured that no spending occurred without parliamentary approval. His explanation emphasized that the flexibility provided by Article 115 was balanced by the need for accountability.

Ultimately, Dr. Ambedkar’s proposal to substitute Article 95 (now Article 115) was adopted by the Constituent Assembly, while Prof. Saksena’s amendment to change the financial year was not approved. The assembly recognized the necessity of supplementary and additional grants in ensuring that unexpected government expenditures could be addressed promptly and efficiently, while maintaining the required parliamentary oversight.

References

• The Constitution of India - Article 115, Supplementary, Additional, or Excess Grants.
• Constituent Assembly Debates - Discussions on Article 95 (Draft Article 95).
• Basu, D.D. "Commentary on the Constitution of India".
• Jain, M.P., "Indian Constitutional Law," 8th Edition - Financial procedures and Appropriation Bills.
• Reports of the Comptroller and Auditor General (CAG) on Supplementary Grants.