Rule 51 — This rule explains how the Indian government asks
Original Rule Text
Rule 51
not be delayed and must be paid within an appropriate time frame immediately after the decision on dividend is taken in the AGM. Ministries or Departments shall monitor timely payments of dividends and profits. The dividend shall be payable as per the guidelines issued by DIPAM in this regard. 49 Receipts Portal. The Government has provided a public portal for online collection of various non-tax revenues including various fees and user charges through e- Receipts. All Ministries/Departments, shall take prompt measures for migration to e- Receipts, to ensure customer convenience and immediate credit of receipts to the Government account. 50 (1) Expenditure estimates. The expenditure estimates shall show separately the sums required to meet the expenditure Charged on the Consolidated Fund under Article 112 (3) of the Constitution and sums required to meet other expenditure for which a vote of the Lok Sabhai is required under Article 113(2) of the Constitution. 50 (2) The estimates shall also distinguish provisions for expenditure on revenue account from capital account, including on loans by the Government and for repayment of loans, treasury bills, cash management bills and ways and means advances. 50 (3) The detailed estimates of expenditure shall be prepared by the estimating authorities up to the final unit of appropriation (Object head) under the prescribed Major and Minor Heads of Accounts for both Revenue and Capital expenditure. Estimates shall include suitable provision for liabilities of the previous years that is to be discharged during the year. (4) The estimates of scheme related and other expenditures shall be processed in consultation with the Budget Division, Ministry of Finance in accordance with the instructions issued by it. 50 (5) The Revised and Budget Estimates of both Revenue and Capital expenditure after being scrutinized by the Financial Advisers and approved by the Secretary of the Administrative Ministry or Department concerned shall be forwarded to the Budget Division in the Ministry of Finance in such manner and forms as may be prescribed by it from time to time. (1) Demands for Grants. The estimates for expenditure for which vote of Lok Sabha is required shall be in the form of
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Demand for Grants. 51 (2) Generally, one Demand for Grant is presented in respect of each Ministry or Department. However, in respect of large Ministries or Departments, more than one Demand may be presented. Each Demand normally includes provisions required for a service, i.e. provisions on account of revenue expenditure, capital expenditure, grants to the State and Union Territory Governments and also Loans and Advances relating to the service. 51 (3) The Demand for Grants shall be presented to Parliament at two levels. The main Demand for Grants shall be presented to Parliament by the Ministry of Finance, Budget Division along with the Annual Financial Statement while the Detailed Demands for Grants, for consideration by the "Departmentally Related Standing Committee" (DRSC) of the Parliament, are laid on the Table of the Lok Sabha by the concerned Ministries/ Departments, as per dates approved from time to time. 52 (1) Form of Annual Financial Statement and Demands for Grant. The form of the Annual Financial Statement and Demands for Grants shall be laid down by the Finance Ministry and no alteration of arrangement or classification shall be made without the approval of that Ministry. 52 (2) The heads under which provision for expenditure shall be made in the Demands for Grants or Appropriation shall be prescribed by the Finance Ministry in consultation with the Administrative Ministry or Department. The authorized heads for expenditure in a year shall be as shown in the Detailed Demands for Grants passed by Parliament and no change shall be made therein without the formal approval of the Finance Ministry. 52 (3) The major head wise provisions in the Detailed Demands for Grants shall match with the provision made in the Demands for Grants presented by Budget Division, as the appropriations are sought on the basis of Demands for Grants. NOTE: Detailed instructions for preparation of the budget are available in Appendix 2, 3 and 4. 53 (1) Acceptance and inclusion of estimates. The estimates of receipts and expenditure of each Ministry/Department shall be scrutinized in the Budget Division of the Ministry of Finance. Secretary (Expenditure) may hold meetings with Secretaries or Financial Advisers of
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What This Means
This rule explains how the Indian government asks Parliament for money to cover its expenses. When a government department needs to spend money, and that spending requires approval from the Lok Sabha (the lower house of Parliament), they don't just ask for a lump sum. Instead, they present their requests in a specific format called "Demands for Grants." Think of these as detailed shopping lists for government spending.
Usually, each Ministry or Department will prepare one "Demand for Grant" covering all the money they need for their operations. However, if a Ministry is very large or has many different functions, they might prepare several separate Demands. Each of these Demands is designed to cover a specific "service" or area of work. This includes money for day-to-day running costs (revenue expenditure), big projects like building infrastructure (capital expenditure), funds given to State and Union Territory governments, and even loans and advances related to that particular service.
The process of getting these Demands approved happens in two stages. First, the Ministry of Finance presents the main, consolidated "Demands for Grants" to Parliament along with the overall budget statement. After this, each individual Ministry or Department then provides much more detailed versions of their "Demands for Grants." These detailed documents are given to special parliamentary committees called "Departmentally Related Standing Committees" (DRSCs) for a thorough review. This two-step process ensures both a broad overview and a detailed scrutiny of how government money will be spent.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government spending requiring Lok Sabha approval must be presented as "Demands for Grants."
- 2Typically, each Ministry or Department submits one Demand, but large ones may submit multiple.
- 3Each Demand covers a specific "service" and includes all types of related expenditure, such as revenue, capital, grants, and loans.
- 4The Ministry of Finance presents the main Demands to Parliament along with the Annual Financial Statement.
- 5Individual Ministries/Departments present detailed Demands to Departmentally Related Standing Committees (DRSCs) for in-depth review.
Practical Example
Imagine the Ministry of Health and Family Welfare is preparing its budget for the upcoming financial year. Under Rule 51, they need to present their financial requirements as "Demands for Grants." Given the vast scope of health services, they might decide to present two separate Demands: one for "Public Health and Hospitals" and another for "Family Welfare and Research."
For the "Public Health and Hospitals" Demand, they would include provisions for salaries of doctors and nurses (revenue expenditure), funds for constructing new district hospitals (capital expenditure of, say, ₹500 crores), grants to state governments for implementing national health programs like the Ayushman Bharat scheme (e.g., ₹2000 crores), and even small loans for setting up primary health centers in remote areas. Once these Demands are finalized, the Ministry of Finance would include the overall figures in the main budget presented to Parliament. Subsequently, the Ministry of Health and Family Welfare would then lay out the highly detailed breakdown of these two Demands before the Parliamentary Standing Committee on Health and Family Welfare for their detailed examination and recommendations.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.