Supplementary, additional or excess grants

Article 95, Draft Constitution 1948

If in respect of any financial year further expenditure from the revenues of India becomes necessary over and above the expenditure theretofore authorised for that year, the President shall cause to be laid before both the Houses of Parliament a supplementary statement showing the estimated amount of that expenditure, and the provisions of the preceding articles shall have effect in relation to that statement and that expenditure as they have effect in relation to the annual financial statement and the expenditure mentioned therein.

(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.

Draft Article 95 (Article 115) was debated on 10 June 1949. It laid out the procedure to obtain additional, supplementary, or excess grants which were not included in the annual financial statement.

The Chairman of the Drafting Committee moved an amendment to wholly replace the Draft Article with the following:

95. (1) The President shall-

(a) if the amount authorised by any law made in accordance with the provisions of article 94 of this Constitution 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 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 the last three preceding articles 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 authorization of Appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant.

The debates in the Assembly were based on this Amendment.

The amendment permitted the appropriation of funds for supplementary, additional, and excess grants from the Consolidated Fund of India.

One member was not convinced by this Amendment, as he believed that such grants could be misused by the Executive. He instead proposed that supplementary, additional, or excess funds could only be granted by approval of both the Houses of the Parliament. The Chairman of the Drafting Committee defended this amendment: such grants were necessary for the smooth functioning of the Executive, especially during emergency circumstances.

Another member argued that this Amendment was inconsistent with Draft Article 94(3) (Article 114), which stated that no money could be withdrawn from the Consolidated Fund of India except under appropriation made by law. Therefore, the withdrawal of any money from the fund under Draft Article 95 would violate both the Constitution and the relevant Appropriation Acts. The Chairman of the Drafting Committee noted that Draft Article 95 authorized the President to present estimates of expenditure before the Parliament where necessary, in situations other than those envisaged by Draft Article 94. He further proposed the creation of a Contingency Fund out of the Consolidated Fund of India. The Contingency Fund could be accessed by the executive in an emergency without having to violate the Appropriation Act.

The Assembly accepted the Drafting Committee’s Amendment and adopted the Draft Article on 10 June 1949.