Vote of credit
Also called: Article 116 · Topic: Parliamentary Procedure, Committees and Privileges · NCERT: Beyond NCERT
Meaning
A vote of credit is a lump-sum grant that the Lok Sabha makes for an unexpected demand on India's resources. It is used when the size or nature of the need is so uncertain that the usual detailed demand for grants cannot be prepared. It is provided for in Art. 116 of the Constitution. It is often called a "blank cheque" because the House approves money without a detailed break-up. It is rarely used, because it weakens Parliament's normal line-by-line control of spending.
Example
Suppose a war or a sudden national emergency breaks out. The government cannot say in advance exactly how much it will spend, or on what. The Lok Sabha could pass a vote of credit for a lump sum to meet the need.
Don't confuse with
- Vote on account (Art. 116(1)(a)): an advance grant, usually for two months, that keeps the government running until the full budget is passed. It covers normal, known spending, not an unexpected need.
- Contingency Fund of India (Art. 267): a standing fund at the President's disposal for unforeseen spending. It is used before Parliament approves the spending and is refilled later.
Related concepts
- Demands for grants
- Guillotine
- Appropriation Bill
- Finance Bill
- Cut motion
- Policy cut motion
- Economy cut motion
- Token cut motion
- Supplementary grant
- Additional grant