Article 115

Article 115 of the Constitution of India provides the constitutional mechanism for supplementary, additional, or excess grants, allowing the government to seek Parliament’s approval for expenditure that goes beyond the estimates approved in the annual budget. This provision ensures flexibility in fiscal management while maintaining parliamentary oversight and accountability in all financial matters. It upholds the principle that no expenditure can be incurred without the authority of law and without the sanction of the legislature.

Constitutional Basis and Context

Article 115 complements Articles 112, 113, and 114, which deal respectively with the Annual Financial Statement, Demands for Grants, and Appropriation Bills. While these articles govern the initial budgetary process, Article 115 provides for adjustments during the financial year when actual requirements differ from budgeted estimates.
This article ensures that any additional, unforeseen, or excess expenditure is regularised through constitutional procedures, maintaining transparency and legality in public spending.

Clause (1): Presentation of Supplementary or Additional Grants

Under Clause (1) of Article 115, the President of India is empowered to present before the Lok Sabha (House of the People) a statement of estimated expenditure in two specific situations:

1. When the amount authorised for a particular service is found insufficient during the financial year.
2. When a need arises for additional expenditure:
   • On a new service or scheme not included in the original budget, or
   • When the expenditure on an existing service exceeds the amount sanctioned by Parliament.

This empowers the executive to deal with changing economic circumstances, natural disasters, or urgent national needs while ensuring that Parliament retains control over public finances.
For instance, supplementary grants may be required to fund unforeseen expenditures like disaster relief, subsidies due to economic changes, or emergency defence spending.

Clause (2): Application of Budgetary Procedure

Clause (2) of Article 115 stipulates that the same procedures laid down in Articles 112, 113, and 114 for the annual budget apply to the consideration and passage of supplementary, additional, or excess grants.
This means that:

• These grants must be presented to Parliament by the President.
• The Lok Sabha considers the demands for such grants in the same manner as those in the annual financial statement.
• After approval, an Appropriation Bill is introduced to authorise the withdrawal of funds from the Consolidated Fund of India.

Thus, Article 115 ensures uniformity in the financial procedure, irrespective of whether the expenditure is planned or unplanned.

Key Financial Terms and Their Meanings

• Supplementary Grants:These are additional funds requested by the government when the allocated amount for a particular service proves insufficient or when new services need to be funded during the ongoing financial year.Example: Additional grants to meet increased defence expenditure due to unforeseen security developments.
• Additional Grants:These are required when a new service or project, not included in the original budget, needs to be undertaken during the year.Example: Launching a new welfare or infrastructure scheme mid-year.
• Excess Grants:These relate to expenditure that exceeds the amount originally sanctioned by Parliament for a specific purpose. Such excesses must be regularised and approved by Parliament through a separate vote and an Excess Appropriation Bill.Example: Expenditure overruns due to inflation, project cost escalation, or emergency relief operations.

Procedure for Supplementary, Additional, or Excess Grants

The constitutional procedure for implementing Article 115 involves several stages:

1. Identification of Need: Ministries and departments determine that authorised funds are inadequate or that new expenditure is necessary.
2. Presidential Recommendation: The President lays before Parliament a statement of estimated expenditure under Article 115(1).
3. Presentation to Lok Sabha: The statement is converted into Demands for Grants and presented in the Lok Sabha for approval.
4. Discussion and Voting: The Lok Sabha debates and votes on these demands, exercising full financial control.
5. Appropriation Bill: Following approval, an Appropriation Bill is introduced to authorise withdrawals from the Consolidated Fund.
6. Parliamentary Approval: The Bill must be passed by both Houses of Parliament and assented to by the President before funds can be withdrawn.

This process ensures that all supplementary and excess expenditures are constitutionally validated, maintaining the supremacy of Parliament in fiscal matters.

Related Constitutional Provisions

Article 115 is integrally connected with other financial provisions in the Constitution:

• Article 112: Provides for the presentation of the Annual Financial Statement (Union Budget).
• Article 113: Governs the procedure for Demands for Grants in Parliament.
• Article 114: Concerns Appropriation Bills, which authorise withdrawals from the Consolidated Fund.
• Article 116: Deals with Votes on Account, Votes of Credit, and Exceptional Grants for temporary or unforeseen financial needs.

Together, these provisions create a cohesive constitutional framework for comprehensive financial management and control.

Judicial Interpretations and Key Case Laws

Although Article 115 has not been the subject of direct judicial interpretation, its principles have been reinforced through key Supreme Court decisions concerning financial accountability and parliamentary supremacy:

• Keshavananda Bharati v. State of Kerala (1973): Established the Basic Structure Doctrine, recognising parliamentary control over finances as part of the essential constitutional framework.
• Minerva Mills Ltd. v. Union of India (1980): Emphasised the balance between executive efficiency and legislative control in financial administration.
• State of West Bengal v. Union of India (1963): Highlighted the distribution of financial powers between the Union and the States, reinforcing the role of Parliament in regulating national finances.

These decisions underscore the constitutional importance of maintaining transparency, accountability, and legislative oversight in fiscal management.

Significance of Article 115

Article 115 holds immense constitutional and administrative importance for several reasons:

• It provides fiscal flexibility, allowing the government to meet unexpected expenditures without disrupting essential public services.
• It maintains parliamentary control over all spending, even when unanticipated circumstances arise.
• It upholds the constitutional principle of legislative sanction for every rupee spent from the Consolidated Fund of India.
• It ensures financial discipline by requiring post-facto approval for excess expenditures and continuous legislative scrutiny.
• It reflects a balance between executive responsiveness and legislative accountability, vital for sound public financial management.

Practical Implications

In practical governance, Article 115 enables the Union Government to respond promptly to emergencies, policy adjustments, or developmental priorities while adhering to constitutional procedures. Supplementary and excess grants are typically presented during Budget Sessions or Monsoon Sessions to meet mid-year financial needs.
The Public Accounts Committee (PAC) plays an essential role in examining excess expenditures and ensuring compliance with parliamentary authorisation. This mechanism strengthens fiscal discipline and safeguards the integrity of India’s public finance system.

Constitutional Significance

Article 115 embodies one of the most critical features of India’s parliamentary democracy — the supremacy of Parliament over the purse of the nation. It ensures that while the executive possesses operational flexibility to respond to dynamic circumstances, it remains constitutionally bound to seek parliamentary sanction for every instance of additional or excess spending.