Budget 2026: What is the Demand for Grants, what does it include, why is it important, and more
As the budget date inches closer, all eyes will be on demands for grants as these translate the government's policy intent into Parliament-approved spending.
- Jan 21, 2026,
- Updated Jan 21, 2026 5:12 PM IST
The Union Budget for FY 2026–27 will be presented in Parliament at 11:00 am on Sunday, February 1, 2026 an unprecedented move, as it will be the first time in India’s history that the Budget is tabled on a Sunday. As the budget date inches closer, all eyes will be on demands for grants as these translate the government's policy intent into Parliament-approved spending.
What is demand for grants?
Demands for Grants are the documents through which the government places before the Lok Sabha its estimated requirements for expenditure from the Consolidated Fund of India for a financial year. These estimates form part of the Annual Financial Statement and are submitted for parliamentary approval in accordance with Article 113 of the Constitution of India. No money can be withdrawn from the Consolidated Fund unless the Lok Sabha votes and approves these demands.
Each Demand for Grant sets out the amount of funds a ministry or department seeks to spend during the year. They provide the legislative basis for government expenditure and enable Parliament to exercise control over public finances by scrutinizing and authorizing proposed spending.
What does a demand for grants include?
The scope of Demands for Grants is broad and includes various types of expenditure. They cover revenue expenditure, which relates to day-to-day operational costs such as salaries and maintenance, as well as capital expenditure aimed at asset creation and long-term development. In addition, Demands for Grants include grants-in-aid given to State Governments and Union Territory administrations, along with provisions for loans and advances extended by the central government.
Why is demand for grants important?
Demands for Grants are important because they provide constitutional approval for government spending. They ensure that money is withdrawn from the Consolidated Fund only with the Lok Sabha’s consent, enabling parliamentary scrutiny, accountability, and legal authorisation of expenditure by ministries and departments.
They also provide a detailed, ministry-wise and scheme-wise breakup of the government's expenditure, helping the lawmakers and public understand how budgeted funds would be utilised. Demands for grants operationalise budget announcements by allocating funds to specific programmes, welfare schemes, and capital projects.
It also allows opposition MPs to question the performance, efficiency and outcomes of ministries, strengthening fiscal accountability and spending discipline.
Is it granted for each ministry or department?
As a general rule, one Demand for Grant is presented for each ministry or department. However, in the case of large ministries or departments with extensive functions, more than one Demand for Grant may be submitted. This approach helps present expenditure requirements in a structured and detailed manner, allowing for a clearer understanding and effective examination by the Lok Sabha.
Overall, Demands for Grants represent the formal mechanism through which the government seeks parliamentary consent for its proposed spending and ensures transparency and accountability in the use of public funds.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in
The Union Budget for FY 2026–27 will be presented in Parliament at 11:00 am on Sunday, February 1, 2026 an unprecedented move, as it will be the first time in India’s history that the Budget is tabled on a Sunday. As the budget date inches closer, all eyes will be on demands for grants as these translate the government's policy intent into Parliament-approved spending.
What is demand for grants?
Demands for Grants are the documents through which the government places before the Lok Sabha its estimated requirements for expenditure from the Consolidated Fund of India for a financial year. These estimates form part of the Annual Financial Statement and are submitted for parliamentary approval in accordance with Article 113 of the Constitution of India. No money can be withdrawn from the Consolidated Fund unless the Lok Sabha votes and approves these demands.
Each Demand for Grant sets out the amount of funds a ministry or department seeks to spend during the year. They provide the legislative basis for government expenditure and enable Parliament to exercise control over public finances by scrutinizing and authorizing proposed spending.
What does a demand for grants include?
The scope of Demands for Grants is broad and includes various types of expenditure. They cover revenue expenditure, which relates to day-to-day operational costs such as salaries and maintenance, as well as capital expenditure aimed at asset creation and long-term development. In addition, Demands for Grants include grants-in-aid given to State Governments and Union Territory administrations, along with provisions for loans and advances extended by the central government.
Why is demand for grants important?
Demands for Grants are important because they provide constitutional approval for government spending. They ensure that money is withdrawn from the Consolidated Fund only with the Lok Sabha’s consent, enabling parliamentary scrutiny, accountability, and legal authorisation of expenditure by ministries and departments.
They also provide a detailed, ministry-wise and scheme-wise breakup of the government's expenditure, helping the lawmakers and public understand how budgeted funds would be utilised. Demands for grants operationalise budget announcements by allocating funds to specific programmes, welfare schemes, and capital projects.
It also allows opposition MPs to question the performance, efficiency and outcomes of ministries, strengthening fiscal accountability and spending discipline.
Is it granted for each ministry or department?
As a general rule, one Demand for Grant is presented for each ministry or department. However, in the case of large ministries or departments with extensive functions, more than one Demand for Grant may be submitted. This approach helps present expenditure requirements in a structured and detailed manner, allowing for a clearer understanding and effective examination by the Lok Sabha.
Overall, Demands for Grants represent the formal mechanism through which the government seeks parliamentary consent for its proposed spending and ensures transparency and accountability in the use of public funds.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in