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Showing posts with label GK. Show all posts
Showing posts with label GK. Show all posts

Thursday, 13 August 2015

India's Freedom Struggle (1857-1947) | India's struggle for Independence



On the occasion of India's divine ceremony on 15th August we should be well known regarding India's struggle towards Independence. Hence, lets know about India's freedom struggle. 

Indian Freedom Struggle (1857-1947)


In ancient times, people from all over the world were keen to come to India. The Aryans came from Central Europe and settled down in India.The Persians followed by the Iranians and Parsis immigrated to India. Then came the Moghuls and they too settled down permanently in India. Chengis Khan, the Mongolian, invaded and looted India many times. Alexander the Great too, came to conquer India but went back after a battle with Porus. He-en Tsang from China came in pursuit of knowledge and to visit the ancient Indian universities of Nalanda and Takshila. Columbus wanted to come to India, but instead landed on the shores of America. Vasco da Gama from Portugal came to trade his country's goods in return for Indian spices. The French came and established their colonies in India.

Lastly, the Britishers came and ruled over India for nearly 200 years. After the battle of Plassey in 1757, the British achieved political power in India. And their paramountcy was established during the tenure of Lord Dalhousie, who became the Governor- General in 1848. He annexed Punjab, Peshawar and the Pathan tribes in the north-west of India. And by 1856, the British conquest and its authority were firmly established. And while the British power gained its heights during the middle of the 19th century, the discontent of the local rulers, the peasantry, the intellectuals, common masses as also of the soldiers who became unemployed due to the disbanding of the armies of various states that were annexed by the British, became widespread. This soon broke out into a revolt which assumed the dimensions of the 1857 Mutiny.

The Indian Mutiny of 1857

The conquest of India, which could be said to have begun with the Battle of Plassey (1757), was practically completed by the end of Dalhousie's tenure in 1856. It had been by no means a smooth affair as the simmering discontent of the people manifested itself in many localized revolt during this period. However, the Mutiny of 1857, which began with a revolt of the military soldiers at Meerut, soon became widespread and posed a grave challenge to the British rule. Even though the British succeeded in crushing it within a year, it was certainly a popular revolt in which the Indian rulers, the masses and the militia participated so enthusiastically that it came to be regarded as the First War of Indian Independence.
Introduction of zamindari system by the British, where the peasants were ruined through exorbitant charges made from them by the new class of landlords. The craftsmen were destroyed by the influx of the British manufactured goods. The religion and the caste system which formed the firm foundation of the traditional Indian society was endangered by the British administration. The Indian soldiers as well as people in administration could not rise in hierarchy as the senior jobs were reserved for the Europeans. Thus, there was all-round discontent and disgust against the British rule, which burst out in a revolt by the 'sepoys' at Meerut whose religious sentiments were offended when they were given new cartridges greased with cow and pig fat, whose covering had to be stripped out by biting with the mouth before using them in rifles. The Hindu as well as the Muslim soldiers, who refused to use such cartridges, were arrested which resulted in a revolt by their fellow soldiers on May 9, 1857.
The rebel forces soon captured Delhi and the revolt spread to a wider area and there was uprising in almost all parts of the country. The most ferocious battles were fought in Delhi, Awadh, Rohilkhand, Bundelkhand, Allahabad, Agra, Meerut and western Bihar. The rebellious forces under the commands of Kanwar Singh in Bihar and Bakht Khan in Delhi gave a stunning blow to the British. In Kanpur, Nana Sahib was proclaimed as the Peshwa and the brave leader Tantya Tope led his troops. Rani Lakshmibai was proclaimed the ruler of Jhansi who led her troops in the heroic battles with the British. The Hindus, the Muslims, the Sikhs and all the other brave sons of India fought shoulder to shoulder to throw out the British. The revolt was controlled by the British within one year, it began from Meerut on 10 May 1857 and ended in Gwalior on 20 June 1858.

End of the East India Company
Consequent to the failure of the Revolt of 1857 rebellion, one also saw the end of the East India Company's rule in India and many important changes took place in the British Government's policy towards India which sought to strengthen the British rule through winning over the Indian princes, the chiefs and the landlords. Queen Victoria's Proclamation of November 1, 1858 declared that thereafter India would be governed by and in the name of the British Monarch through a Secretary of State.
The Governor General was given title of Viceroy, which meant the representative of the Monarch. Queen Victoria assumed the title of the Empress of India and thus gave the British Government unlimited powers to intervene in the internal affair of the Indian states. In brief, the British paramountcy over India, including the Indian States, was firmly established. The British gave their support to the loyal princes, zamindar and local chiefs but neglected the educated people and the common masses. They also promoted the other interests like those of the British merchants, industrialists, planters and civil servants. The people of India, as such, did not have any say in running the government or formulation of its policies. Consequently, people's disgust with the British rule kept mounting, which gave rise to the birth of Indian National Movement.

The leadership of the freedom movement passed into the hands of reformists like Raja Rammohan Roy, Bankim Chandra and Ishwar Chandra Vidyasagar. During this time, the binding psychological concept of National Unity was also forged in the fire of the struggle against a common foreign oppressor.
Raja Rammohan Roy (1772-1833) founded the Brahmo Samaj in 1828 which aimed at purging the society of all its evil practices. He worked for eradicating evils like sati, child marriage and purdah system, championed widow marriage and women's education and favoured English system of education in India. It was through his effort that sati was declared a legal offence by the British.

Swami Vivekananda (1863-1902) the disciple of Ramakrishna Paramahamsa, established the Ramkrishna Mission at Belur in 1897. He championed the supremacy of Vedantic philosophy. His talk at the Chicago (USA) Conference of World Religions in 1893 made the westerners realize the greatness of Hinduism for the first time.
Formation of Indian National Congress (INC)
The foundations of the Indian National Movement were laid by Suredranath Banerjee with the formation of Indian Association at Calcutta in 1876. The aim of the Association was to represent the views of the educated middle class, inspire the Indian community to take the value of united action. The Indian Association was, in a way, the forerunner of the Indian National Congress, which was founded, with the help of A.O. Hume, a retired British official. The birth of Indian National Congress (INC) in 1885 marked the entry of new educated middle-class into politics and transformed the Indian political horizon. The first session of the Indian National Congress was held in Bombay in December 1885 under the president ship of Womesh Chandra Banerjee and was attended among others by and Badr-uddin-Tyabji.

At the turn of the century, the freedom movement reached out to the common unlettered man through the launching of the "Swadeshi Movement" by leaders such as Bal Gangadhar Tilak and Aurobindo Ghose. The Congress session at Calcutta in 1906, presided by Dadabhai Naoroji, gave a call for attainment of 'Swaraj' a type of self-government elected by the people within the British Dominion, as it prevailed in Canada and Australia, which were also the parts of the British Empire.

Meanwhile, in 1909, the British Government announced certain reforms in the structure of Government in India which are known as Morley-Minto Reforms. But these reforms came as a disappointment as they did not mark any advance towards the establishment of a representative Government. The provision of special representation of the Muslim was seen as a threat to the Hindu-Muslim unity on which the strength of the National Movement rested. So, these reforms were vehemently opposed by all the leaders, including the Muslim leader Muhammad Ali Jinnah. Subsequently, King George V made two announcements in Delhi: firstly, the partition of Bengal, which had been effected in 1905, was annulled and, secondly, it was announced that the capital of India was to be shifted from Calcutta to Delhi.
The disgust with the reforms announced in 1909 led to the intensification of the struggle for Swaraj. While, on one side, the activists led by the great leaders like Bal Gangadhar Tilak, Lala Lajpat Rai and Bipin Chandra Pal waged a virtual war against the British, on the other side, the revolutionaries stepped up their violent activities There was a widespread unrest in the country. To add to the already growing discontent among the people, Rowlatt Act was passed in 1919, which empowered the Government to put people in jail without trial. This caused widespread indignation, led to massive demonstration and hartals, which the Government repressed with brutal measures like the Jaliawalla Bagh massacre, where thousand of unarmed peaceful people were gunned down on the order of General Dyer.
Jallianwala Bagh Massacre
Jalianwala Bagh massacre of April 13, 1919 was one of the most inhuman acts of the British rulers in India. The people of Punjab gathered on the auspicious day of Baisakhi at Jalianwala Bagh, adjacent to Golden Temple (Amritsar), to lodge their protest peacefully against persecution by the British Indian Government. General Dyer appeared suddenly with his armed police force and fired indiscriminately at innocent empty handed people leaving hundreds of people dead, including women and children.
After the First World War (1914-1918), Mohandas Karamchand Gandhi became the undisputed leader of the Congress. During this struggle, Mahatma Gandhi had developed the novel technique of non-violent agitation, which he called 'Satyagraha', loosely translated as 'moral domination'. Gandhi, himself a devout Hindu, also espoused a total moral philosophy of tolerance, brotherhood of all religions, non-violence (ahimsa) and of simple living. With this, new leaders like Jawaharlal Nehru and Subhash Chandra Bose also emerged on the scene and advocated the adoption of complete independence as the goal of the National Movement.

The Non-Cooperation Movement

The Non-Cooperation Movement was pitched in under leadership of Mahatma Gandhi and the Indian National Congress from September 1920 to February 1922, marking a new awakening in the Indian Independence Movement. After a series of events including the Jallianwala Bagh Massacre, Gandhiji realised that there was no prospect of getting any fair treatment at the hands of British, so he planned to withdraw the nation's co-operation from the British Government, thus launching the Non-Cooperation Movement and thereby marring the administrative set up of the country. This movement was a great success as it got massive encouragement to millions of Indians. This movement almost shook the British authorities.
Simon Commission

The Non-cooperation movement failed. Therefore there was a lull in political activities. The Simon Commission was sent to India in 1927 by the British Government to suggest further reforms in the structure of Indian Government. The Commission did not include any Indian member and the Government showed no intention of accepting the demand for Swaraj. Therefore, it sparked a wave of protests all over the country and the Congress as well as the Muslim League gave a call to boycott it under the leadership of Lala Lajpat Rai. The crowds were lathi charged and Lala Lajpat Rai, also called Sher-e-Punjab (Lion of Punjab) died of the blows received in an agitation.
Civil Disobedience Movement

Mahatma Gandhi led the Civil Disobedience Movement that was launched in the Congress Session of December 1929. The aim of this movement was a complete disobedience of the orders of the British Government. During this movement it was decided that India would celebrate 26th January as Independence Day all over the country. On 26th January 1930, meetings were held all over the country and the Congress tricolour was hoisted. The British Government tried to repress the movement and resorted to brutal firing, killing hundreds of people. Thousands were arrested along with Gandhiji and Jawaharlal Nehru. But the movement spread to all the four corners of the country Following this, Round Table Conferences were arranged by the British and Gandhiji attended the second Round Table Conference at London. But nothing came out of the conference and the Civil Disobedience Movement was revived.
During this time, Bhagat Singh, Sukhdev and Rajguru were arrested on the charges of throwing a bomb in the Central Assembly Hall (which is now Lok Sabha) in Delhi, to demonstrate against the autocratic alien rule. They were hanged to death on March 23, 1931.
Quit India Movement
In August 1942, Gandhiji started the 'Quit India Movement' and decided to launch a mass civil disobedience movement 'Do or Die' call to force the British to leave India. The movement was followed, nonetheless, by large-scale violence directed at railway stations, telegraph offices, government buildings, and other emblems and institutions of colonial rule. There were widespread acts of sabotage, and the government held Gandhi responsible for these acts of violence, suggesting that they were a deliberate act of Congress policy. However, all the prominent leaders were arrested, the Congress was banned and the police and army were brought out to suppress the movement.
Meanwhile, Netaji Subhash Chandra Bose, who stealthily ran away from the British detention in Calcutta, reached foreign lands and organized the Indian National Army (INA) to overthrow the British from India.

The Second World War broke out in September of 1939 and without consulting the Indian leaders, India was declared a warring state (on behalf of the British) by the Governor General. Subhash Chandra Bose, with the help of Japan, preceded fighting the British forces and not only freed Andaman and Nicobar Islands from the Britishers but also entered the north-eastern border of India. But in 1945 Japan was defeated and Netaji proceeded from Japan through an aeroplane to a place of safety but met with an accident and it was given out that he died in that air-crash itself.
"Give me blood and I shall give you freedom" - was one of the most popular statements made by him, where he urges the people of India to join him in his freedom movement.
Partition of India and Pakistan

At the conclusion of the Second World War, the Labour Party, under Prime Minister Clement Richard Attlee, came to power in Britain. The Labour Party was largely sympathetic towards Indian people for freedom. A Cabinet Mission was sent to India in March 1946, which after a careful study of the Indian political scenario, proposed the formation of an interim Government and convening of a Constituent Assembly comprising members elected by the provincial legislatures and nominees of the Indian states. An interim Government was formed headed by Jawaharlal Nehru. However, the Muslim League refused to participate in the deliberations of the Constituent Assembly and pressed for the separate state for Pakistan. Lord Mountbatten, the Viceroy of India, presented a plan for the division of India into India and Pakistan, and the Indian leaders had no choice but to accept the division, as the Muslim League was adamant.
Thus, India became free at the stroke of midnight, on August 14, 1947. (Since then, every year India celebrates its Independence Day on 15th August). Jawaharlal Nehru became the first Prime Minster of free India and continued his term till 1964. Giving voice to the sentiments of the nation, Prime Minister, Pandit Jawaharlal Nehru said,
Long years ago we made a tryst with destiny, and now the time comes when we will redeem our pledge, not wholly or in full measure, but very substantially. At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom. A moment comes, which comes but rarely in history, when we step out from the old to the new, when an age ends and when the soul of a nation, long suppressed, finds utterance.... We end today a period of ill fortune, and India discovers herself again.



Earlier, a Constituent Assembly was formed in July 1946, to frame the Constitution of India and Dr. Rajendra Prasad was elected its President. The Constitution of India which was adopted by the Constituent Assembly on 26th November 1949. On January 26, 1950, the Constitution was came into force and Dr. Rajendra Prasad was elected the first President of India.

What is Budget in India? Budgeting in India and Its History. Constitutional References for Budgeting

·         The Constitution refers to the budget as the ‘annual financial statement’. In other words, the term ‘budget’ has nowhere been used in the Constitution. It is the popular name for the ‘annual financial statement’ that has been dealt with in Article 112 of the Constitution.
·         The budget is a statement of the estimated receipts and expenditure of the Government of India in a financial year, which begins on 1 April and ends on 31 March of the following year.
·         In addition to the estimates of receipts and expenditure, the budget contains certain other elements. Overall, the budget contains the following:
1. Estimates of revenue and capital receipts;
2. Ways and means to raise the revenue;
3. Estimates of expenditure;
4. Details of the actual receipts and expenditure of the closing financial year and the reasons for any deficit or surplus in that year; and
5. Economic and financial policy of the coming year, that is, taxation proposals, prospects of revenue, spending programme and introduction of new schemes/projects.
·         The Government of India has two budgets, namely, the Railway Budget and the General Budget. While the former consists of the estimates of receipts and expenditures of only the Ministry of Railways, the latter consists of the estimates of receipts and expenditure of all the ministries of the Government of India (except the railways).
·         The Railway Budget was separated from the General Budget in 1921 on the recommendations of the Acworth Committee. The reasons or objectives of this separation are as follows:
1. To introduce flexibility in railway finance.
2. To facilitate a business approach to the railway policy.
3. To secure stability of the general revenues by providing an assured annual contribution from railway revenues.
4. To enable the railways to keep their profits for their own development (after paying a fixed annual contribution to the general revenues).

Constitutional Provisions

The Constitution of India contains the following provisions with regard to the enactment of budget:
1.    The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of estimated receipts and expenditure of the Government of India for that year.
2.    No demand for a grant shall be made except on the recommendation of the President.
3.    No money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law.
4.    No money bill imposing tax shall be introduced in the Parliament except on therecommendation of the President, and such a bill shall not be introduced in the Rajya Sabha.
5.    No tax shall be levied or collected except by authority of law.
6.    Parliament can reduce or abolish a tax but cannot increase it.
7.    The Constitution has also defined the relative roles or position of both the Houses of Parliament with regard to the enactment of the budget in the following way:
(a)  A money bill or finance bill dealing with taxation cannot be introduced in the Rajya Sabha—it must be introduced only in the Lok Sabha.
(b)  The Rajya Sabha has no power to vote on the demand for grants; it is the exclusive privilege of the Lok Sabha.
(c)  The Rajya Sabha should return the Money bill (or Finance bill) to the Lok Sabha within fourteen days. The Lok Sabha can either accept or reject the recommendations made by Rajya Sabha in this regard.
8.    The estimates of expenditure embodied in the budget shall show separately the expenditure charged on the Consolidated Fund of India and the expenditure made from the Consolidated Fund of India.
9.    The budget shall distinguish expenditure on revenue account from other expenditure.

Charged Expenditure

·         The budget consists of two types of expenditure—the expenditure ‘charged’ upon the Consolidated Fund of India and the expenditure ‘made’ from the Consolidated Fund of India.
·         The charged expenditure is non-votable by the Parliament, that is, it can only be discussed by the Parliament, while the other type has to be voted by the Parliament.
·         The list of the charged expenditure is as follows:
1. Emoluments and allowances of the President and other expenditure relating to his office.
2. Salaries and allowances of the Chairman and the Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha.
3. Salaries, allowances and pensions of the judges of the Supreme Court.
4. Pensions of the judges of high courts.
5. Salary, allowances and pension of the Comptroller and Auditor General of India.
6. Salaries, allowances and pension of the chairman and members of the Union Public Service Commission.
7. Administrative expenses of the Supreme Court, the office of the Comptroller and Auditor General of India and the Union Public Service Commission including the salaries, allowances and pensions of the persons serving in these offices.
8.The debt charges for which the Government of India is liable, including interest, sinking fund charges and redemption charges and other expenditure relating to the raising of loans and the service and redemption of debt.
9. Any sum required to satisfy any judgement, decree or award of any court or arbitral tribunal.
10. Any other expenditure declared by the Parliament to be so charged.
'Sinking Fund'
·         A means of repaying funds that were borrowed through a bond issue. The issuer makes periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market.

Stages in Enactment

The budget goes through the following six stages in the Parliament:
1.        Presentation of budget.
2.        General discussion.
3.        Scrutiny by departmental committees.
4.        Voting on demands for grants.
5.        Passing of appropriation bill.
6.        Passing of finance bill.
Presentation of Budget
·         The budget is presented in two parts—Railway Budget and General Budget. Both are governed by the same procedure.
·         The introduction of Railway Budget precedes that of the General Budget. While the former is presented to the Lok Sabha by the railway minister in the third week of February, the latter is presented to the Lok Sabha by the finance minister on the last working day of February.
·         The Finance Minister presents the General Budget with a speech known as the ‘budget speech’. At the end of the speech in the Lok Sabha, the budget is laid before the Rajya Sabha, which can only discuss it and has no power to vote on the demands for grants.
General Discussion
·         The general discussion on budget begins a few days after its presentation. It takes place in both the Houses of Parliament and lasts usually for three to four days.
·         During this stage, the Lok Sabha can discuss the budget as a whole or on any question of principle involved therein but no cut motion can be movednor can the budget be submitted to the vote of the House. The finance minister has a general right of reply at the end of the discussion.
Scrutiny by Departmental Committees
·         After the general discussion on the budget is over, the Houses are adjourned for about three to four weeks. During this gap period, the 24 departmental standing committees of Parliament examine and discuss in detail the demands for grants of the concerned ministers and prepare reports on them. These reports are submitted to both the Houses of Parliament for consideration.
·         The standing committee system established is 1993 (and expanded in 2004) makes parliamentary financial control over ministries much more detailed, close, in-depth and comprehensive.
Voting on Demands for Grants
·         In the light of the reports of the departmental standing committees, the Lok Sabha takes up voting of demands for grants. The demands are presented ministrywise. A demand becomes a grant after it has been duly voted.
·         Two points should be noted in this context. One, the voting of demands for grants is the exclusive privilege of the Lok Sabha, that is, the Rajya Sabha has no power of voting the demands.
·         Second, the voting is confined to the votable part of the budget—the expenditure charged on the Consolidated Fund of India is not submitted to the vote (it can only be discussed).
·         While the General Budget has a total of 109 demands (103 for civil expenditure and 6 for defence expenditure), the Railway Budget has 32 demands. Each demand is voted separately by the LokSabha. During this stage, the members of Parliament can discuss the details of the budget. They can also move motions to reduce any demand for grant. Such motions are called as ‘cut motion’, which are of three kinds:
(a)      Policy Cut Motion It represents the disapproval of the policy underlying the demand. It states that the amount of the demand be reduced to Re 1. The members can also advocate an alternative policy.
(b)      Economy CutMotion It represents the economy that can be affected in the proposed expenditure. It states that the amount of the demand be reduced by a specified amount (which may be either a lumpsum reduction in the demand or ommission or reduction of an item in the demand).
(c)      Token Cut Motion It ventilates a specific grievance that is within the sphere of responsibility of the Government of India. It states that the amount of the demand be reduced by Rs 100.

A cut motion, to be admissible, must satisfy the following conditions:
(i)                It should relate to one demand only.
(ii)               It should be clearly expressed and should not contain arguments or defamatory statements.
(iii)              It should be confined to one specific matter.
(iv)              It should not make suggestions for the amendment or repeal of existing laws.
(v)               It should not refer to a matter that is not primarily the concern of Union government.
(vi)              It should not relate to the expenditure charged on the Consolidated Fund of India.
(vii)             It should not relate to a matter that is under adjudication by a court.
(viii)            It should not raise a question of privilege.
(ix)              It should not revive discussion on a matter on which a decision has been taken in the same session.
(x)               It should not relate to a trivial matter.

·         The significance of a cut motion lies in:
(a)  facilitating the initiation of concentrated discussion on a specific demand for grant; and
(b)  upholding the principle of responsible government by probing the activities of the government.
·         However, the cut motion do not have much utility in practice. They are only moved and discussed in the House but not passed as the government enjoys majority support. Their passage by the Lok Sabha amounts to the expressions of want of parliamentary confidence in the government and may lead to its resignation.
·         In total, 26 days are allotted for the voting of demands. On the last day the Speaker puts all the remaining demands to vote and disposes them whether they have been discussed by the members or not. This is known as ‘guillotine’.
Passing of Appropriation Bill
·         The Constitution states that ‘no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law’. Accordingly, an appropriation bill is introduced to provide for the appropriation, out of the Consolidated Fund of India, all money required to meet:
(a)               The grants voted by the Lok Sabha.
(b)               The expenditure charged on the Consolidated Fund of India.
·         No such amendment can be proposed to the appropriation bill in either house of the Parliament thatwill have the effect of varying the amount or altering the destination of any grant voted, or of varying the amount of any expenditure charged on the Consolidated Fund of India.
·         The Appropriation Bill becomes the Appropriation Act after it is assented to by the President. This act authorises (or legalises) the payments from the Consolidated Fund of India. This means that the government cannot withdraw money from the Consolidated Fund of India till the enactment of the appropriation bill. This takes time and usually goes on till the end of April. But the government needs money to carry on its normal activities after 31 March (the end of the financial year). To overcome this functional difficulty, the Constitution has authorised the Lok Sabha to make any grant in advance in respect to the estimated expenditure for a part of the financial year, pending the completion of the voting of the demands for grants and the enactment of the appropriation bill. This provision is known as the ‘vote on account’. It is passed (or granted) after the general discussion on budget is over. It is generally granted for two months for an amount equivalent to one-sixth of the total estimation.
Passing of Finance Bill
·         The Finance Bill is introduced to give effect to the financial proposals of the Government of India for the following year. It is subjected to all the conditions applicable to a Money Bill. Unlike the Appropriation Bill, the amendments (seeking to reject or reduce a tax) can be moved in the case of finance bill.
·         According to the Provisional Collection of Taxes Act of 1931, the Finance Bill must be enacted (i.e., passed by the Parliament and assented to by the president) within 75 days.
·         The Finance Act legalises the income side of the budget and completes the process of the enactment of the budget.
·         In addition to the budget that contains the ordinary estimates of income and expenditure for one financial year, various other grants are made by the Parliament under extraordinary or special circumstances:
·         Supplementary Grant It is granted when the amount authorised by the Parliament through the appropriation act for a particular service for the current financial year is found to be insufficient for that year.
·         Additional Grant It is granted when a need has arisen during the current financial year for additional expenditure upon some new service not contempleted in the budget for that year.
·         Excess Grant It is granted when money has been spent on any service during a financial year in excess of the amount granted for that service in the budget for that year. It is voted by the Lok Sabha after the financial year. Before the demands for excess grants are submitted to the Lok Sabha for voting, they must be approved by the Public Accounts Committee of Parliament.
·         Vote of Credit It is granted 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 a budget. Hence, it is like a blank cheque given to the Executive by the Lok Sabha.
·         Exceptional Grant It is granted for a special purpose and forms no part of the current service of anyfinancial year.
·         Token Grant It is granted when funds to meet the proposed expenditure on a new service can be made available by reappropriation. A demand for the grant of a token sum (of Re 1) is submitted to the vote of the Lok Sabha and if assented, funds are made available. Reappropriation involves transfer of funds from one head to another. It does not involve any additional expenditure.
·         Supplementary, additional, excess and exceptional grants and vote of credit (first five grants) are regulated by the same procedure which is applicable in the case of a regular budget.
The Constitution of India provides for the following three kinds of funds for the Central government:
1.                Consolidated Fund of India (Article 266)
2.                Public Account of India (Article 266)
3.                Contingency Fund of India (Article 267)

Consolidated Fund of India

·         It is a fund to which all receipts are credited and all payments are debited. In other words,
(a)  all revenues received by the Government of India;
(b)  all loans raised by the Government by the issue of treasury bills, loans or ways and means of advances; and
(c)  all money received by the government in repayment of loans forms the Consolidated Fund of India.
·         All the legally authorised payments on behalf of the Government of India are made out of this fund. No money out of this fund can be appropriated (issued or drawn) except in accordance with a parliamentary law.

Public Account of India

·         All other public money (other than those which are credited to the Consolidated Fund of India) received by or on behalf of the Government of India shall be credited to the Public Account of India.
·         This includes provident fund deposits, judicial deposits, savings bank deposits, departmental deposits, remittances and so on. This account is operated by executive action, that is, the payments from this account can by made without parliamentary appropriation. Such payments are mostly in the nature of banking transactions.

Contingency Fund of India

·         The Constitution authorised the Parliament to establish a ‘Contingency Fund of India’, into which amounts determined by law are paid from time to time. Accordingly, the Parliament enacted the Contingency Fund OfIndia Act in 1950.

·         This fund is placed at the disposal of the president, and he can make advances out of it to meet unforeseen expenditure pending its authorisation by the Parliament. The fund is held by the finance secretaryon behalf of the president. Like the public account of India, it is also operated by executive action.
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