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Article 116

Votes on Account, Votes of Credit and Exceptional Grants

Official heading: “Votes on account, votes of credit and exceptional grants”

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Source edition
The Constitution of India (as on 1 May 2026)
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Part V, Article 116, printed page 54
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1. In One Sentence

Article 116 empowers the Lok Sabha to make advance grants (votes on account) before budget enactment, votes of credit for unexpected national emergencies, and exceptional grants.

2. What It Means in Everyday Language

Article 116 provides emergency and transitional spending mechanisms to prevent government shutdowns while lengthy budget debates occur.

Sub-clause (a) governs 'Votes on Account': the Lok Sabha can make advance grants to cover estimated government expenditure for a fraction of the upcoming financial year (typically two months) pending the completion of the full budget voting and Appropriation Act.

Sub-clause (b) governs 'Votes of Credit': Parliament can make a lump-sum grant to meet an unexpected demand upon the resources of India when, on account of the magnitude or indefinite character of the service (e.g. wartime mobilisation), the demand cannot be stated with details ordinarily required.

Sub-clause (c) governs 'Exceptional Grants' for expenditures that form no part of the current service of any financial year.

Clause (2) applies standard Appropriation Act rules to authorize withdrawals for these special grants.

3. Practical Illustrative Example

Everyday Scenario:

General elections take place in April and May, delaying the presentation of the full Union Budget until July.

Core takeaway: Parliament passes an Interim Budget and a 'Vote on Account' under Article 116(a), allowing the government to legally pay salaries and run public services until the regular budget is passed.
Illustrative Notice: Votes on account provide temporary operational funds and are traditionally restricted from introducing major new fiscal policy shifts.

4. Important Limits, Qualifications & Exceptions

Article 116 prevents fiscal paralysis during national transitions or sudden crises.

  • Votes on Account: Prevents government shutdown pending full annual appropriation.
  • Votes of Credit: Constitutional equivalent of a financial blank cheque for urgent national defence.
  • Exceptional Grants: Covers irregular or non-recurring expenditures.
  • Maintains legislative supremacy: All special withdrawals require parliamentary appropriation.

5. Operative Constitutional Text

(1) Notwithstanding anyth ing in the foregoing provisions of this Chapter, the House of the People shall have power— (a) to make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in article 1 13 for the voting of such grant and the passing of the law in accordance with the provisions of article 114 in relation to that expenditure; (b) to make a grant 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 an annual financial statement; (c) to make an exceptional grant which forms no part of the current service of any financial year, and Parliament shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of India for the purposes for which the said grants are made. (2) The provisions of articles 113 and 114 shall have effect in relation to the making of any grant under clause (1) and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure.
Transcription for reference; compare with the linked official editionNot yet verified by a human legal reviewer

6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata
  • •
    Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
    Government of India (Legislative Department, Ministry of Law and Justice) • Part V, Article 116, printed page 54 • Human source-link check pending

    Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource

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