Demand for Grants
Expenditure Intermediateअनुदान की मांग
Definition
Demand for Grants is the formal request by each ministry or department to Parliament for funds for a financial year. Each Demand specifies the amount needed under revenue and capital heads. Parliament must approve these demands through voting. Only the Lok Sabha can vote on Demands for Grants. There are typically 100+ Demands presented each year.
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Why Demand for Grants Matters
Understanding demand for grants is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.
In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like demand for grants help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.
For UPSC aspirants, demand for grants is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.
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