What is Article 116 of Indian Constitution – Defination & Meaning

Article 116: Votes on account, votes of credit and exceptional grants (1) Notwithstanding anything in the foregoing provisions of this Chapter, the House of
📅 Part V – The Union
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Article Number

116

part

Part V – The Union

Status

Active

Bare Acts Text

Article 116: Votes on account, votes of credit and exceptional grants

  • (1) Notwithstanding anything in the foregoing provisions of this Chapter, the House of the People 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 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;
  • (b) 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;
  • (c) 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.
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Full Definition & Explanation

Article 116 of the Indian Constitution outlines how the House of the People, also known as the Lok Sabha, can authorize grants in specific situations. This article is particularly key during financial emergencies or when unexpected demands arise that require immediate funding. It allows the government to make financial provisions even before the normal budgetary process is completed. This means that if there is a pressing need for funds, the government can act quickly without waiting for the usual approval process, ensuring that necessary services and projects are not delayed due to financial constraints. The first part of Article 116 allows for advance grants for estimated expenditures. This is useful when the budget has not yet been finalized, but the government needs to start spending. It helps maintain continuity of government operations. The second part allows for grants to meet unexpected demands, such as natural disasters or urgent infrastructure needs. This flexibility helps the government respond swiftly to crises, ensuring public safety and welfare. Lastly, Article 116 permits exceptional grants that are not part of the regular yearly budget. This provision ensures that the government can address unique financial challenges as they arise. The Parliament has the authority to withdraw money from the Consolidated Fund of India to meet these grants, which is a critical mechanism for financial governance. By enabling the government to act promptly, Article 116 plays a key role in ensuring effective administration and public welfare, especially in times of uncertainty and need.

Historical Context

Article 116 was included in the Constitution of India during its drafting in 1949 and was meant to provide flexibility in financial governance. During the Constituent Assembly debates, members emphasized the necessity of having mechanisms for quick financial responses, especially in emergencies. The article has not been amended since its inception, reflecting the drafters’ intention to maintain a robust framework for financial grants. The Supreme Court has upheld the provisions of Article 116 in various rulings, emphasizing its importance in enabling the government to respond to financial emergencies without delay, ensuring the state’s smooth functioning.

Key Features

– Article 116 allows advance grants for estimated expenditures.
– It enables the government to meet unexpected financial demands.
– Exceptional grants can be made outside the annual budget.
– Parliament can authorize withdrawal from the Consolidated Fund.
– It ensures continuity of government operations during crises.

Importance & Impact

– Quick financial responses help prevent delays in key public services.
– Advance grants ensure that government operations can continue during budgeting.
– Unexpected demands can be managed without going through lengthy procedures.
– Exceptional grants assist in tackling unique and unforeseen financial challenges.
– Parliament’s authority plays a critical role in maintaining responsible financial governance.

Sample UPSC Question

Consider the following statements about Article 116: 1. A Vote on Account allows the government to meet expenses pending passage of the full budget. 2. A Vote on Account can include new tax proposals and new schemes. 3. In an election year, a Vote on Account may cover more than two months of expenditure. 4. The Vote on Account must be approved by both Lok Sabha and Rajya Sabha. Which statements are correct? a) 1 and 3 only b) 1, 2 and 3 only c) 2 and 4 only d) 1, 3 and 4 only

Answer

The correct answer is B. Article 116 permits advance grants for estimated expenditures, allowing the government to manage finances efficiently during urgent situations. Other options are incorrect because A misrepresents the article’s purpose, C inaccurately suggests limitations on Parliament’s powers, and D is false as it has not been amended since its adoption.

Key Takeaways

✓ Article 116 enables urgent financial grants for immediate needs.
✓ It provides a mechanism for spending before budget approval.
✓ Unexpected financial demands can be addressed in a timely manner.
✓ Exceptional grants are available for unique financial situations.
✓ Parliament oversees and authorizes withdrawals for these grants.

FAQs

Article 116 of the Indian Constitution outlines how the House of the People, also known as the Lok Sabha, can authorize grants in specific situations. This article is particularly key during financial emergencies or when unexpected demands arise that require immediate funding. It allows the government to make financial provisions even before the normal budgetary process is completed.

The second part allows for grants to meet unexpected demands, such as natural disasters or urgent infrastructure needs. This flexibility helps the government respond swiftly to crises, ensuring public safety and welfare. Lastly, Article 116 permits exceptional grants that are not part of the regular yearly budget. Article 116 of the Indian Constitution outlines how the House of the People, also known as the Lok Sabha, can authorize grants in specific situations.

This provision ensures that the government can address unique financial challenges as they arise. The Parliament has the authority to withdraw money from the Consolidated Fund of India to meet these grants, which is a critical mechanism for financial governance. By enabling the government to act promptly, Article 116 plays a key role in ensuring effective administration and public welfare, especially in times of uncertainty and need.

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Pramod is the Founder and Editor-in-Chief of StudyHub. He holds a Master's degree and is currently pursuing a Ph.D. in Geology, alongside more than 7+ years spent building and verifying competitive exam content for Indian aspirants. He leads StudyHub's editorial process across Indian Polity, the Constitution, Indian Economy, History, Geography, Science, and the platform's other subject areas — checking every article against primary sources (bare act text and Gazette notifications for constitutional topics, government and Economic Survey data for economy content, standard reference material elsewhere) and flagging it for re-verification whenever a relevant amendment, policy, or data update makes an earlier version outdated.
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