Overview

The Indian government presents its annual Budget in February, outlining the planned expenditures for the upcoming financial year, which begins in April. After approximately 8-9 months into the financial year, the government assesses its spending needs and may submit a Supplementary Demand for Grants in December if additional funds are required.

Key Components

Budget Presentation: Occurs in February.
Financial Year: Starts in April.
Supplementary Demand for Grants: Submitted in December if more funds are needed.

Supplementary Demand for Grants Explained

The Supplementary Demand for Grants is a mechanism that allows the government to seek additional funds from the Parliament during the financial year. This becomes necessary when the initially allocated funds in the Budget prove insufficient to meet the actual expenditure requirements. By December, the government has a clearer understanding of its financial position and can accurately estimate the need for extra funds.

UPSC Relevance

Understanding the budgetary process and the concept of Supplementary Demand for Grants is crucial for the UPSC Civil Services Exam. This topic is relevant to GS3 (Economy), specifically concerning government budgeting and fiscal policy. Questions may arise regarding the reasons for seeking additional grants and their impact on the economy.

Important Facts

The Budget is presented annually in February.
The Indian financial year runs from April to March.
Supplementary Demand for Grants is submitted in December.

Watch: Explained: What are Supplementary Demands for Grants?

Key Points

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