The Centre on Thursday presented a demand for additional expenditure towards a previously announced bank recapitalisation plan for public sector banks, to the tune of Rs 80,000 crore. The first tranche under the funding programme was tabled in the Lok Sabha by Minister of State for Finance P P Chaudhary.
The supplementary grant is being sought to meet expenditure towards recapitalisation of PSBs through the issue of government securities. After taking into account additional receipts on the issue of securities to PSBs, the ministry noted that this supplementary grant will not entail cash outgo.
This is the third branch of supplementary demands for grants for the year 2017-18. Earlier in October, Finance Minister Jaitley had announced an unprecedented PSBrecapitalisation programme of Rs. 2.11 lakh crore, out of which Rs. 1.35 lakh crore will come from recap bonds, and rest from markets and budgetary support, according to ANI.
Ours is a Parliamentary system of government based on Westminster model. The Constitution has, therefore, vested the power over the purse in the hands of chosen representatives of the people thus sanctifying the principle ‘no taxation without representation’. Preparation of Budget for the approval of the Legislature is a Constitutional obligation of the Government both at the Centre and the State levels. Legislative prerogative over taxation, legislative control over expenditure and executive initiative in financial matters are some of the fundamental principles of the system of Parliamentary financial control.
No expenditure in excess of the sums authorised by Parliament can be incurred without the sanction of Parliament. Whenever a need arises to incur extra expenditure, a Supplementary estimate is laid before Parliament. If any money has been spent on any service during a financial year in excess of the amounts granted for that service and for that year, the Minister of Finance/ Railways presents a Demand for Excess Grant.
The procedure followed in Parliament in regard to Supplementary/Excess Grants is more or less the same as is adopted in the case of estimates included in the General Budget, according to http://www.parliamentofindia.nic.in. Supplementary Demand for Grants – Presented when (a) authorized amounts are insufficient, or (b) need for additional expenditure has arisen.