Article 206

Votes on Account, Votes of Credit, and Exceptional Grants

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

Check this article against the official editionAwaiting human legal review

Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part VI, Article 206, printed pages 94–95
Last human source-link check: Not yet checked
Last human legal review: Not yet reviewed

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1. In One Sentence

Article 206 empowers the Legislative Assembly to make advance expenditure grants (Vote on Account), votes of credit for unexpected demands, and exceptional grants.

2. What It Means in Everyday Language

Article 206 provides specialized financial mechanisms to keep the State government operating before the full annual budget can be formally debated and enacted.

Vote on Account (Clause 1a): The Legislative Assembly can grant advance funds for a part of the financial year (typically two to three months) pending the detailed discussion and voting of Demands for Grants and the passage of the main Appropriation Act.

Vote of Credit (Clause 1b): Enables the Assembly to grant funds to meet an unexpected demand upon the resources of the State when, on account of magnitude or indefinite character, the demand cannot be stated with budget details (analogous to a national emergency credit).

Exceptional Grants (Clause 1c): Allows the Assembly to grant funds for purposes forming no part of the current service of any financial year.

3. Practical Illustrative Example

Everyday Scenario:

State assembly general elections are scheduled in March, preventing the outgoing government from passing a full-year budget for the upcoming financial year starting April 1.

Core takeaway: Under Article 206(1)(a), the Assembly passes an interim Vote on Account for four months, authorizing funds to pay government salaries and essential services until the new government convenes.

Illustrative Notice: A Vote on Account is strictly an interim measure; it cannot introduce major new long-term fiscal policies.

4. Important Limits, Qualifications & Exceptions

Article 206 prevents government shutdown during transitional or emergency periods.

Vote on Account provides interim supply pending full budget enactment.
Vote of Credit provides lump-sum supply for sudden, unspecifiable emergencies.
Exceptional grants provide for non-standard governmental funding.
Must be followed by an Appropriation Act under Clause (2).

5. Operative Constitutional Text

(1) Notwithstanding anythin g in the foregoing provisions of this Chapter, the Legislative Assembly of a State 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 203 for the voting of such grant and the passing of the law in accordance with the provisions of article 204 in relation to that expenditure; (b) to make a grant for meeting an unexpected demand upon the resources of the State 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 the Legislature of the State shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of the State for the purposes for which the said grants are made. (2) The provisions of articles 203 and 204 shall hav e 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 the State 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

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Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part VI, Article 206, printed pages 94–95 • 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