Article 203 of CoI : Article 203: Procedure in Legislature with respect to estimates.

Explanation using Example

Example 1:

Scenario: The State Government of Maharashtra is preparing its annual budget.

Explanation:

1. Expenditure Charged Upon the Consolidated Fund:

   • The budget includes salaries of judges of the High Court, interest payments on state debts, and pensions of retired government employees.
   • These expenditures are charged upon the Consolidated Fund of Maharashtra.
   • According to Article 203(1), these expenditures are not submitted to the vote of the Legislative Assembly. However, members of the Legislative Assembly can discuss these expenditures.

2. Other Expenditures:

   • The budget also includes funds for new infrastructure projects, education programs, and healthcare services.
   • These expenditures are not charged upon the Consolidated Fund and are submitted to the Legislative Assembly in the form of demands for grants.
   • The Legislative Assembly of Maharashtra has the power to approve, reject, or reduce the amount of these demands as per Article 203(2).

3. Governor's Recommendation:

   • Before any demand for a grant is made, it must be recommended by the Governor of Maharashtra as per Article 203(3).
   • For instance, if the Education Department wants to request additional funds for building new schools, this demand must first be recommended by the Governor before being presented to the Legislative Assembly.

Example 2:

Scenario: The State Government of Karnataka is discussing its mid-year financial review.

Explanation:

1. Expenditure Charged Upon the Consolidated Fund:

   • The review includes expenditures such as the maintenance of the Governor's residence, salaries of the State Public Service Commission members, and administrative expenses of the High Court.
   • These expenditures are charged upon the Consolidated Fund of Karnataka.
   • As per Article 203(1), these expenditures are not put to vote in the Legislative Assembly but can be discussed by the members.

2. Other Expenditures:

   • The review also includes additional funding requests for road repairs, public health initiatives, and agricultural subsidies.
   • These expenditures are submitted to the Legislative Assembly in the form of demands for grants.
   • The Legislative Assembly of Karnataka can approve, reject, or reduce these demands as per Article 203(2).

3. Governor's Recommendation:

   • Any new demand for grants, such as additional funds for drought relief in certain districts, must be recommended by the Governor of Karnataka before being presented to the Legislative Assembly, in accordance with Article 203(3).
   • This ensures that the Governor has oversight over new financial requests before they are debated and voted on by the Legislative Assembly.