📜 Article 206 of the Indian Constitution
Title: Votes on account, votes of credit, and exceptional grants
🔹 Text Summary:
Article 206 allows a State Legislature to grant temporary financial authority to the government in special or urgent situations before the full Budget is passed. It provides tools like Vote on Account, Vote of Credit, and Exceptional Grants.
📌 Clause-wise Breakdown:
| Clause | Provision |
|---|---|
| (1) | The Legislative Assembly may: |
| (a) Make a Vote on Account – to cover expenses for a short period until the full budget is passed. | |
| (b) Make a Vote of Credit – for unforeseen expenditures due to emergency like war, floods, etc. | |
| (c) Make an Exceptional Grant – for special purposes not part of the current Budget. | |
| (2) | All these types of grants must be subject to the provisions of Article 203, i.e., they require the approval of the Legislative Assembly, and are introduced only on the recommendation of the Governor. |
🧠 Key Takeaways:
| Type | Purpose |
|---|---|
| Vote on Account | Temporary approval to withdraw money for day-to-day govt functioning until the full Budget is passed. Usually valid for 2–4 months. |
| Vote of Credit | For unexpected, urgent expenditures like war, natural disasters. No detailed estimates required. |
| Exceptional Grant | For one-time, special expenditure not part of regular budget services (e.g., a new mega project or relief fund). |
🏛️ Example Situations:
| Scenario | Grant Used |
|---|---|
| Budget not yet passed, but govt needs funds to pay salaries | ✅ Vote on Account |
| Sudden flood relief needed | ✅ Vote of Credit |
| Funding for a rare cultural event | ✅ Exceptional Grant |
⚖️ Related Articles:
| Article | Subject |
|---|---|
| 202 | Annual Financial Statement (State Budget) |
| 203 | Voting on expenditure (Demands for Grants) |
| 204 | Appropriation Bill |
| 205 | Supplementary, Additional or Excess Grants |
| 206 | Votes on Account, Vote of Credit, Exceptional Grants |
📊 Budget Toolkit Summary (Articles 202–206):
| Provision | Use Case |
|---|---|
| Article 202 | Presents the full State Budget |
| Article 203 | Voting on grants for ministries/schemes |
| Article 204 | Authorizes actual withdrawal of money |
| Article 205 | Adjusts for extra or excess expenditure |
| Article 206 | Allows temporary/emergency funding |
Follow Us