Part XII: Finance, Property, Contracts, and Suits

Article 116: Votes on Account, Votes of Credit, and Exceptional Grants

Original Article:

(1) Notwithstanding anything in the foregoing provisions of this Chapter, the House of the People shall have power:

• 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 113 for the voting of such grant and the passing of the law in accordance with the provisions of Article 114 in relation to that expenditure;
• to make a grant for meeting an unexpected demand upon the resources of India 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;
• to make an exceptional grant which forms no part of the current service of any financial year, and Parliament shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of India for the purposes for which the said grants are made.

(2) The provisions of Articles 113 and 114 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 India to meet such expenditure.

Explanations:

Article 116 outlines the mechanisms through which Parliament can authorize temporary and exceptional financial grants. These provisions allow for immediate financial resources to be available when the normal budgetary processes are incomplete or when urgent demands arise.

Clause-by-Clause Explanations:

Clause (1): Power to make grants in advance, ensuring operational continuity during delays in the budgetary process.

Clause (1)(b): Vote of Credit, addressing unforeseen, large-scale financial demands.

Clause (1)(c): Exceptional grants for extraordinary purposes outside routine expenditures.

Legislative History:

Article 116, initially drafted as Article 96 of the Draft Constitution, was finalized on June 10, 1949.

Debates and Deliberations:

Dr. B.R. Ambedkar revised Article 96, elaborating the House of the People's financial powers. During debates, Shri K. Santhanam raised concerns about the wording, which were addressed by Dr. Ambedkar and Shri T.T. Krishnamachari.

Real-Life Examples:

During the Indo-Pak War of 1971, a vote of credit was utilized for emergency financial needs.