Article 203: Procedure in Legislature with respect to Estimates

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(1) So much of the estimates as relates to expenditure charged upon the Consolidated Fund of a State shall not be submitted to the vote of the Legislative Assembly, but nothing in this clause shall be construed as preventing the discussion in the Legislature of any of those estimates.

(2) So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the Legislative Assembly, and the Legislative Assembly shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein.

(3) No demand for a grant shall be made except on the recommendation of the Governor.

Explanations

Article 203 of the Indian Constitution delineates the legislative procedures related to state budget estimates. It establishes which expenditures require legislative approval and outlines the role of the Governor in budgetary proposals, ensuring a balance between executive recommendations and legislative scrutiny.

Clause-by-Clause Explanation

Clause (1) – Expenditure Charged Upon the Consolidated Fund

This clause specifies that expenditures charged on the Consolidated Fund of the State do not require a legislative vote, though the estimates may still be discussed for transparency.

Clause (2) – Legislative Assembly's Power on Other Expenditures

The Assembly has the authority to accept, reject, or reduce grant requests for other expenditures. This power ensures legislative control over discretionary spending.

Clause (3) – Governor’s Recommendation

No demand for a grant can be raised without the Governor's recommendation, reflecting executive oversight in budget proposals.

Real-Life Examples

• In Maharashtra, the Assembly discusses the salaries of High Court judges, which, though not subject to vote, reflect judicial independence and transparency.
• During COVID-19, the Governor of Rajasthan recommended budget allocations for health services, demonstrating executive influence in budget proposals.

Historical Significance

Article 203 draws from British governance practices, embedding accountability in India’s financial management by requiring legislative control over budgetary matters and securing essential government expenditures.

Debates and Amendments

During the Constituent Assembly debates, Dr. B.R. Ambedkar moved to substitute “revenues of a State” with “Consolidated Fund of a State” to centralize control over state finances. The change emphasized protecting key expenditures from arbitrary reductions and reinforced the independence of critical government functions. This amendment was adopted, reflecting the assembly’s commitment to fiscal discipline and executive oversight.

References

• Constitution of India, Article 203
• Constituent Assembly Debates, June 10, 1949
• History of Budgetary Practices in Indian Legislature