Budget preparation Process

Mohammad Azad Sallal

Deputy Secretary
Finance Division, Ministry of Finance
 Concept about Budget
A budget is …

 ‘…a set of resources applied to achieve a

specific objective…’
 … an ‘action plan’ not just a ‘funding plan
 Government Budget

 In general, budget is the financial plan of a

government for a given period, usually for a fiscal
year, which shows what its resources are, and how
they will be generated and used over the fiscal
period;
 The government budget also refers to the income,
expenditure, fiscal deficit (if any) and sources of
borrowings of the Government that are used to
achieve national objectives, strategies and
programs;
 The budget is the government’s key
instrument for promoting its socio-economic
objectives;
 In Bangladesh, budget is implemented from
1st of July of a year to 30th June of the
following calendar year which is known as
financial year (or fiscal year).
 Legal basis of Budget

 Article 87 of the Constitution states that:

 There shall be laid before Parliament,
in respect of each financial year, a
statement of the estimated receipts
and expenditure of the Government
for that year, in this Part referred to as
the Annual Financial Statement (AFS);
 The AFS shall show separately – the sums
required to meet expenditure charged by or
under this Constitution upon the
Consolidated Fund; and
 The sums required to meet other
expenditure proposed to be made from the
Consolidated Fund; and shall distinguish
expenditure on revenue account from other
expenditure
 Legal basis of Budget

 Section 10 of the Public Moneys and Budget

Management Act, 2009 states that:
 The Finance Minister shall place the annual
budget before Parliament prior to each
financial year;
 Other expenditure shall be distinguished
from charged expenditure in the annual
budget;
 Expenditure on revenue account shall be
distinguished from other expenditure in the
annual budget;
 The Finance Minister shall submit a Medium
Term Budget along with the annual budget
before Parliament and the Medium Term
Budget shall consist of estimated receipts and
expenditure of the Government for the budget
year and projections for two outer years;
• The Medium Term Budget shall
establish linkages between
government policies and objectives
to resource allocations and resource
allocations to performance of the
Ministry or Division.
 Types of Government Budget

 Government Budgets are of three types:

 Balanced budget;
 Surplus budget; and
 Deficit budget:
 Balanced budget:
 A balanced budget is a budget with revenues equal to expenditures. More
generally, it refers to a budget with no deficit, but possibly with a surplus;
 A budget is a balanced budget when the difference between the revenue and
expenditure is equal to zero; [R-E=0 or R=E]
 A cyclically balanced budget is a budget that is not necessarily balanced year-
to-year, but is balanced over the economic cycle, running a surplus in boom
years and running a deficit in lean years, with these offsetting over time.
 Types of Government Budget

 Surplus budget:
 When estimated revenues exceed total expenditure of the
government is known as surplus budget;
 In surplus budget, revenue exceeds expenditure [R-E = +ve or R>E]
 Deficit budget:
 When total expenditures become higher than the sum of total
estimated revenue and grants of the government is called a deficit
budget;
 In deficit budget, R-E = -ve or E>R;
 A deficit budget – good or bad?
Structure of Government Budget
Revenue and Grants
Tax revenues
Non-tax revenues
Grants
Expenditure and Net Lending
Recurrent or revenue expenditure
Capital or investment expenditure
Net Lending
Overall Balance (Surplus/Deficit) .
Financing
Foreign (net)
Domestic (net)
Borrowing from Financial Institutions
Borrowing from other sources
 Revenue and Grants

 Revenue: all non-repayable receipts (i.e. receipts which do

not give rise to an obligation of repayment) except grants
 Tax revenue: compulsory and unrequited receipts collected by the
government for public purposes;
 NBR Tax (Income tax, CD, VAT etc.);
 Non-NBR Tax (Land, Narcotics, Road tax etc.)
 Non-tax revenue: Dividend/profits from public financial/non-financial
enterprises, interest, user fees etc.;
 Grants: unrequited receipts from other governments (Japan,
UK etc.) or international institutions (WB, ADB etc.);
 Expenditure and Net Lending

 Government expenditures may be divided into:

 Current expenditure – needs to maintain current policy (wages and
salaries; goods and services; interest payments; subsidies and current
transfers); and
 Capital expenditure – government’s investment program (acquisition
of fixed and financial assets);
 Net Lending: loans given by the government minus
repayments made by respective borrowers (e.g. loans to
government employees, public enterprises, local government
institutions etc.);
 Fiscal Deficit

 Fiscal Deficit: Fiscal deficit arises when the sum of total expenditures and
net lending becomes higher than the sum of total revenue and grants.
The deficit can be measured with or without including the interest
payments on the public debt as expenditures;
 Primary Deficit: The primary deficit is defined as the difference between
current government spending on goods and services and total current
revenue from all types of taxes net of transfer payments;
 Primary Deficit (PD) = Total revenue – total current expenditure (except interest payments);
 Total deficit (which is often called the fiscal deficit or just the 'deficit'): is
the primary deficit plus interest payments on the outstanding public
debt.
 Total deficit (TD) = Primary deficit (PD) + interest payments (I)
 Financing Fiscal Deficit

 Fiscal deficit can be financed in following ways:

 Domestic sources
 borrowing from financial institutions (Central bank, DMBs,
NBFIs); and
 borrowing from other sources (Savings Certificates, Public
Accounts surplus etc.)
 External sources
 borrowing from foreign governments, international organizations
or donor agencies on concessionary terms; and
 Market-based borrowings through issuing sovereign and diaspora
bonds, procuring suppliers credit etc.
Different phases of the MTBF process
Under the MTBF, the budget preparation process is completed
in four phases:
• (i) Macro-modeling phase
• (ii) Strategic Phase
• (iii) Estimating Phase and
• (iv) Budget Approval Phase
The above phases of the budget preparation process are
divided into several steps;
As a first step under the Strategic Phase, it is necessary to
revise/update Ministry Budget Framework (MBF) by
Ministries/Divisions and Other Institutions
 Steps involved in budget preparation
process under the MTBF
Updating the Medium Term Macroeconomic Framework (MTMF);
Issuing Budget Circular- 1 with Preliminary Indicative Expenditure
Ceiling;
Reviewing & Revising/Updating MBF (Ministry Budget Framework)
by the respective Ministry/Division
Finalizing MBF at the tripartite meeting (between FD, PC and
respective Ministry);
Finalizing Indicative Expenditure Ceiling by BMRC;
Issuing Budget Circular- 2;
Preparing budget estimates by the Line Ministry/Division
Examining and finalizing budget estimates and placing before the
Cabinet for consent and Parliament for approval
Steps involved in budget preparation process
under the MTBF
Preliminary
Finance Division Indicative Ceiling
Budget
Cirgular 1

Line Ministry Ministry Budget

Framework
Strategic Phase
Finance, Planning Tri –party Meeting
and Line Ministry

Finance Division Indicative Ceiling Budget

Circular 2
Line Ministry Detailed Budget
Estimate
Planning
commission ADP

Budget Compilation
and Submission for
Finance Division
Approval
 Budget Circular- 1
 The aim of the Budget Circular 1 is to prepare a
strategic work plan for line Ministry known as
Ministry Budget Framework (MBF)
 MBF entails policy analysis, identifying strategic
objectives & activities and linking those activities
with the executing agencies’ resource allocations
 MBFs are revised and updated in accordance
with the guidelines contained in Budget Circular
1
 Budget Circular- 1
 Budget Circular incorporates guidelines/instructions
 To prepare or revise/update the Ministry Budget
Framework (MBF)
 To prepare estimates and projections for both
Operation and Development (ADP) Expenditure.
 Also contains various forms
 Form-1: Preliminary revenue target of the Ministry;
 Form-2: Department/Agency wise Expenditure Ceiling;
 Form-3: Department/Agency’s Preliminary
Expenditure estimates and projections
 Budget Circular- 1

• Preliminary Revenue Target: (Core tk.)

Code Ministry/Division Estimate Projection
2020-21 2021-22 2022-23

104 Cabinet Division 1 1.1 1.3

• Preliminary Indicative Expenditure Ceiling: (Core Tk.)

Code Ministry /Division Estimate Projection

2020-21 2021-22 2022-23

104 Cabinet Division 270 280 292

 Budget Circular- 1
 Procedure for Revising and Updating Part-A of
MBF:
Determination of Revenue Targets and
Preliminary Expenditure Ceilings for the
Departments and Agencies
 Review of the draft MBF (Part-A) by the BWG
 Review of the draft MBF (Part-A) by the BMC
 Request to Departments/ Agencies for revising
and updating Part-B of the MBF
 Budget Circular- 1
 Revising and Updating Part-B of MBF by the
Department/Agency
 Preparation of preliminary expenditure estimates for budget
year and projections of outer years
 Examination and Finalization of Part B of MBF
 Forwarding Part-B of MBF to Administrative
Ministry/Division
 Examination and Finalization of Part-B of MBF
 Consultation with Planning Commission
 Finalization of the Ministry Budget Framework
 Submission of MBF
 MBF Preparation Procedure
 Responsibility for preparing Part-A of the MBF:
 Overall coordination: Head of BMB/W;
 Draft preparation: Officers working under
Budget Management Branch or Wing (2 or 3);
 Revenue/Recurrent Budget- one person.
 ADP/Development Budget- one person.
 Another person may be assigned associated
with either revenue or development budget
 MBF Preparation Procedure
• Composition of MBF:
MBF Part-A MBF Part-B
Prepared by Ministry/Division Prepared by Department/ Agency
Section-1: Mission Statement and Major Section-6.1: Recent achievements of the
Functions of the Ministry/Division Department/ Agencies
Section-2: Medium Term Strategic Section-6.2: Activities, Output Indicators
Objectives and Activities and Targets
Section-3: Poverty and Gender reporting Section-6.3: Medium Term Expenditure
Estimates
Section-4.1: Priority Spending Areas/ Form-3: Preliminary Expenditure Estimates
Programmes and Projections for the Departments/
Agencies under the Ministry.
MBF Part-A MBF Part-B
Prepared by Ministry/Division Prepared by Department/ Agency

Section-4.2: Priority Spending Areas/ Programmes

Section-4.2 (A): Dept/ Agency/ Operation unit wise
expenditure*
Section-4.2 (B): Economic Code wise expenditure*
Section-5: Key Performance Indicators (KPI) of the
Ministry/Division/Other Institution
Form-1: Preliminary Revenue Estimates and
Projections
Form-2: Expenditure Ceilings for Departments and * Auto generated from iBAS
Agencies
 Section 1: Mission Statement of the Ministry

A succinct expression of an organisation’s reason for

existence. It serves as an ongoing guide without a
timeframe;
The Mission Statement of the ministry/division should
be briefly described;
To develop a clear mission statement the ministry must
consider the following:
What is the purpose of this ministry; what does it
intend to achieve,
By what broad areas of operation will the ministry do
this, and
Who the intended beneficiaries?
 Section 1: Major Functions of the Ministry
Policy and project formulation, implementation,
monitoring and evaluation, with focus on
improving the quality of secondary, higher
secondary, technical and tertiary education, and
conducting research and training;

Reforming and formulating the administrative

policy relating to secondary, higher secondary,
vocational and tertiary education and
registration of non- government school teachers;
 Section 1: Major Functions of the Ministry

The major functions of the ministry/division are

listed;
The major functions should be summarised from
the Allocation of Business;
It should be linked with both the mission
statement and the strategic objectives of the
Ministry;
limited to a maximum of 8 (Eight) functions.
 Section 2: Medium-Term Strategic Objectives
and Activities
Medium-Term Strategic Objectives (Outlined in Column- 1): These
are statements in the strategic component of the MBF which the line
Ministry will achieve within the medium term. The Objectives should
be clearly linked to the GoB’s national policy objectives and will be
supported by key activities and key performance indicators and
targets
Activities (Outlined in Column- 2): Activities are specific tasks
undertaken to deliver the required outputs to an external party -
usually the public, individually or collectively. The key activities are a
description of what is to be done with the resources provided in the
budget to achieve the strategic objectives; i.e what is actually going
to be done;
Implementing Department/Agencies (Outlined in Column- 3): List
the departments/agencies under the ministry that will be
responsible for the implementing the activities
 Section 3: Poverty and Gender reporting
Line ministry will try to assess the impact of each of
the ministry’s Strategic Objective on two important
areas;
 Poverty Reduction and
 Women’s Advancement
Describe separately how the strategic objective and
its associated activities relate and contribute to the
Government’s wider objectives of poverty reduction
and women’s advancement
If a medium term strategic objective does not have a
direct impact on poverty reduction and/or women’s
advancement that also needs to be mentioned
Section 4: Priority Spending Areas/ Programmes

A priority spending area is a defined programme

of activities or works that makes a significant
contribution towards the realisation of the
strategic objectives of an organisation;
Identify and describe the main priority spending
areas for the ministry/division that are expected
to have the greatest impact on the achievement
of ministry/ division’s strategic objectives;
Relates to the main functions of the
ministry/division and should be ranked in order
of priority
 Section 5: Key Performance Indicators (KPIs
Ministry must identify outcome or high level
output key performance indicators (KPIs) to
demonstrate/ measure achievement/ progress of
the medium term strategic objectives developed
by the Ministry/Division in Section 2 column 1;
KPIs should focus on the outcomes and high level
outputs in preference to the inputs. The outcome
is the impact of what the ministry delivers rather
than the quantity of goods or service delivered;
Example: A drop in Infant Mortality Rate as a
result of immunization programme is a KPI for the
Ministry of Health and Family Welfare
 Section 5: Key Performance Indicators (KPIs)

Medium Term Targets

Related Unit of Revised Revised
Actual Target
2ndicator Strategic Measureme Target Target
20117-18 2018-19
Objectives nt 2017-18 2019-20 2020- 2021- 2022-
21 22 23
 Section 5: Key Performance Indicators (KPIs)
Column 1: Identify key performance indicators (KPI) for
the ministry/division. Limit the number of KPIs
between 4 and 6;
• Column 2: Specify the Related Strategic Objectives
mentioned at Section 2;
• Column 3 : Specify and describe the unit of
measurement for the indicator;
•Column 4 and 5: Specify the revised target value for
2013-14 and actual achievement for 2013-14.
•Column 6 and 7: Specify the existing target value for
2014-15 and revised target value for 2014-15;
•Columns 8-10: Specify the and medium-term target
values for 2015/16 – 2017/18
Section 6.1: Recent Achievements
department/agency should briefly narrate its
recent achievements (during last three years);
description should include relevant data and
provide a good description of the scope and
scale of the department/agency activities
Summarise the description within 100-120
words
 Section 6. 2: Activities, Output Indicators and
Targets of the Departments/Agencies
The information for this part of Section 5 is collected
in a matrix format. The Matrix contains 3 columns for
 Key Activities,
 Outputs Related to those Activities, and
 Related Strategic Objectives.
Outputs: Outputs are the services provided by a
government department/agency/ programme- e.g.
numbers of patients treated, children vaccinated or
kilometres of road built
Form 1: Determination of preliminary revenue
targets for Departments and Agencies

Revenue Targets for the Secretariat part and Departments

under the Ministry/Division have to be fixed on the basis of
the total revenue target given for the concerned
Ministry/Division;
While setting the Revenue Target for Departments, revenue
receipts in recent years and sources/items of revenues
must be reviewed. Primarily the revenue target for current
fiscal year can be taken as the basis for determination of
preliminary revenue target;
Revenue Target should be duly fixed against payment of
dividend from autonomous bodies (if any)
Form 2: Determination Preliminary Expenditure
Ceilings for Departments and Agencies
Preliminary Expenditure Ceiling for the Secretariat,
Departments, Autonomous Bodies and grant receiving
private organizations have to be fixed considering the
probable amount of money needed each year for the
operation units/programmes/projects;
Expenditure Ceilings for the Secretariat, Departments,
Autonomous Bodies and grant receiving private
organizations for the budget year and outer years to be
fixed in such a way so that they can be accommodated
within the Preliminary Expenditure Ceiling given for the
Ministry/Division
Form 2: Determination Preliminary Expenditure
Ceilings for Departments and Agencies
Resources should be allocated as far as possible against specific
activity so that efficiency of the budgetary provision can be clearly
seen. Block allocation should therefore be kept to a minimum;
However, line Ministry may need to preserve some money to
accommodate additional demand from Department/Agency. This
reserve sum can be put temporarily into block allocation under the
Secretariat part;
While setting the resource ceilings for autonomous bodies,
earnings of the relevant agency in recent years and sources/items of
revenues must be reviewed. Resource ceilings for autonomous
bodies must be set after deduction of probable income in the
medium-term
Form 2: Determination Preliminary Expenditure
Ceilings for Departments and Agencies
Autonomous Bodies, which are run on a commercial basis and
submit their budget proposals to the Monitoring Cell of Finance
Division, need not be considered while determining Agency
Expenditure Ceilings;
However, necessary allocations should be kept for Autonomous
Bodies having development projects in the ADP or if there is a
decision taken at an appropriate level to provide
loan/equity/subsidy to a commercial enterprise;
Grants/ allocations for private organizations included in current year
(2015-16) budget should be determined in the light of their
involvement in realization of strategic objectives of the
Ministry/Division and their probable incomes in next five years
Form 3: Preparation of Preliminary Estimates
and Projections
Programs and projects must be grouped as “Top Priority”,
“Medium Priority” and “Low Priority”;
Within each category programs and projects are need to
be ranked in descending order of priority;
List of approved programs/projects and unapproved/
probable programs/ projects should be shown separately;
Resources to be allocated on the basis of priority of the
projects/programmes;
Conditional allocation may be made for an un-approved
project/ programme under the process of approval
 Form 3: Preparation of Preliminary Estimates
and Projections
It must be ensured that, allocation for programmes/ projects
is made in such a way that total cost approved for a
programme or project is not exceeded;
If it is not possible to accommodate allocation for all
programs/projects within the department/agency resource
ceilings, then funding for the top priority and medium
priority projects must be ensured first;
The less priority or unapproved programme/projects may be
dropped or the allocations for such programs/projects may
be reduced to accommodate total expenditure within the
ceiling
 BC- 1: Activities & Deadlines for FY 2020-21
SL Steps to be Taken Responsibility Deadline Steps to be
NO Taken
01. Revising / Updating Sections Relevant Officers of the
1- 5 of MBF Part-A Ministry/ Division
02 Preparation of draft Relevant Officers of the
Department/Agency Ministry/ Division
Preliminary Revenue Targets
and Expenditure Ceilings
03 Detail review of MBF (Part-A) BWG of Ministry/
including draft Division
Department/Agency
Preliminary Revenue Targets
and Expenditure Ceilings and
Preparation of
Recommendations for BMC
04 Review and Approval of MBF BMC of Ministry/
(Part-A) including draft Division
Department/Agency
Preliminary Expenditure
Ceilings and Revenue Targets
 BC- 1: Activities & Deadlines for FY 2020-21
SL. Steps to be Taken Responsibility Deadline
No.
05 Forwarding Part-A of MBF to the Departments/ BMB or BMW of
Agencies and Requesting them to Prepare the Part- Ministry/Division
B of MBF and submit it to the Ministry/ Division
06 Revising / Updating of Part-B of MBF by the Relevant Officers of
Departments/Agencies the Department/
Agency
07 Preparation of Preliminary Expenditure Estimates Relevant Officers of
and Projections for Operation the Department/
Units/Programmes/Projects by the Department/ Agency
Agencies (Form- 3 of Part- B of MBF)
08 Review and Approval of Part B of MBF including BMC of
Preliminary Expenditure Estimates and Projections Department/ Agency
Forwarding Part-B of MBF (including Preliminary Relevant
Expenditure &Estimates) to Ministry/Division by Department/ Agency
Departments/Agencies
09 Forwarding Part-B of MBF (including Relevant Department/
Preliminary Expenditure &Estimates) to Agency
Ministry/Division by Departments/Agencies

10 Reviewing and Finalization of Part- B of MBF BMB or BMW of

Ministry/Division

11 Requesting for approval on overall size of Non Relevant Officers of

Development and Development Expenditure & Ministry/Division
Programme/ project wise Expenditure proposal
from relevant Sector Division & Programming
Division of Planning Commission
12 Requesting for approval on overall size of Non Relevant Officers of
Development and Development Expenditure & Ministry/Division
Programme/ project wise Expenditure proposal
from relevant Sector Division & Programming
Division of Planning Commission
11 Requesting for approval on overall size of Relevant Officers of
Non Development and Development Ministry/Division
Expenditure & Programme/ project wise
Expenditure proposal from relevant Sector
Division & Programming Division of
Planning Commission
12 Notification from relevant Sector Division Relevant Sector
of Planning Commission to Programming Division, Planning
and Ministry/ Division regarding their Commission
consent to Programme/ Project wise
Expenditure proposal
13 Notification from relevant Programming Programming
Division of Planning Commission to Sector Division, Planning
Division and Ministry/ Division regarding Commission
their consent to Programme/ Project wise
Expenditure proposal
14 Finalization of MBF of Ministry/ Division BMC of Ministry/
Division
15 Forwarding MBF to Finance Division and Relevant Officers of
Planning Commission Ministry/Division
 Budget Management Committee
Sl.No Description of the members Designation
.

1 Secretary/Principal Accounting Officer Chairman

2 All Additional/Joint Secretaries Member

3 Chief of Planning Wing/Cell Member

4 Heads of key Departments Member

5 Concerned Deputy Secretary, Finance Division Technical Member

6 Concerned Deputy Chief, Planning Commission Technical Member

7 Representatives of IMED Member

(Not below the rank of director)

8 Ministry Chief Accounts Officer Member

9 Convenor of Budget Working Group Member-Secretary

 Functions of BMC:
Review draft short, medium and long term budget related
policy of the ministry and make recommendations for
approval
Approve budget related plan/working plan of the ministry
Approve Ministry Budget Framework
Approve revenue receipt and expenditure ceilings of the
subordinate offices including secretariat
Approve revenue and expenditure estimates and projections
Review and approve proposals of development programmes
under revenue budget
Approve budget implementation plan including advance
procurement plan of the subordinate offices
Review progress of revenue collection and expenditure
against targets on quarterly basis
To monitor and manage performance against the key
targets with appropriate performance measures and
indicators and to take appropriate actions to ensure
that targets are achieved as far as possible;
To review internal and statutory audit reports and
provide necessary directives for disposal of the audit
objections
Approve Appropriation Accounts of the
ministry/division before sending it to the Comptroller
and Auditor General’s office for certification of the
account
 Budget Working Group
Sl.No. Description of the members Designation

1 Additional/Joint Secretary in charge of BMW President

2 Head of BMB/BMS Member

3 Representative of the Planning cell Member

4 Officer in charge of budget/accounts section of all agencies Member

5 Concerned SAS, FD Member

6 Concerned SAC/AC of the concerned SD Member

7 Chief Accounts Officer Member

8 SAS/AS/SAC/AC, BMB/BMW Member Secretary

9 Accounts Officer of the ministry/division Member

 Functions BWG:
Review following documents and finalize them before
placing them before the BMC for approval:
Budget related plan/work plan of the ministry/division
Draft Ministry Budget Framework (part I and II) of the
ministry/div
Revenue target and expenditure ceilings of the subordinate
offices
Estimates and projections of revenue collection and expenditure
Budget implementation plan including advance procurement
plan of the subordinate offices
Annual report on actual achievement against targets of
outcome/outputs
Quarterly progress report of budget implementation plan
Working papers of the BMC
Report on budget implementation
Preparing budget implementation report following the
formats of the Finance Division
Ensuring proper utilization of the financial power delegated to
the ministry/divisions including re-appropriation
Reconciliation of the departmental accounts with the
accounts of the CAO
Preparing annual appropriation account of the ministry and
send it to the CAG office for certification of the accounts
Preparing budget related reports for PAC and for other
Parliamentary Standing Committees
Coordinate budget related issues with FD, PC, ERD and IMED
Establish and manage MIS for collection, preservation and
management of data and information on KPIs
Providing secretarial assistance to BMC and BWG and
ensuring sending of minutes of the BMC to the FD and PC
 Documents submitted to the Parliament

The following Budget documents submitted to the

Parliament as per R.111(2):
1. Budget Speech, Bangla & English
2. Budget in Brief, Bangla & English
3. Annual Financial Statement, Bangla & English
4. Supplementary Financial Statement,
5. Consolidated Fund Receipts, Bangla & English
6. Demands for Grants and Appropriations, Non. Dev &
Dev, Bangla & English
7. Demands for Grants and Appropriations, Dev
8. Medium Term Budget Framework, Bangla & English
9. Economic Review
Stages of the budget discussions in Parliament

Discussion on Voting on demand

General discussion
demand for grants for grants of other
on Budget
and appropriation expenditure
 General discussion of the Budget
• On a day to be appointed by Speaker, the
House shall be at liberty to discuss the budget
as a whole(R:115(1))
• During the general discussion FM has the
general right to reply (R:115(2))
• The Speaker may prescribe a time limit for
speeches. (R:115(3))
 Demand for Grants
• Separate demand shall be made in respect of
grant proposed for each ministry (R:116(1)
• Each demand shall contain a statement of the
total grant and then a statement of detailed
estimates (R:116(2))
• No demand for Grant shall be made except on
the recommendation of the President.
(R:116(3))
 Voting of Demand for Grants
• In consultation with the Leader of the House, the Speaker
shall allot so many days as may be compatible for
discussion and voting on demand for grants(R:117(1)).
• On the last day of the allotted days, the Speaker shall
forthwith put every question necessary to dispose of all
the outstanding matters in connection with the demand
for Grants. (R.117(2))
• Motions may be moved to reduce a demand for a grant
but not to increase a grant or alter the destination of a
grant (R:117(3)).
Thank You