Charged Expenditure

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Charged Expenditure

Charged expenditure refers to that category of government expenditure which is charged on the Consolidated Fund of India and is not subject to voting by the Parliament, although it can be discussed.

Constitutional Basis of Charged Expenditure

The concept of charged expenditure is derived from the provisions of Article 112 and Article 113 of the Constitution of India.

Distinction between Charged and Voted Expenditure (Article 112)

Article 112 mandates that the Budget (Annual Financial Statement) must clearly distinguish between:

  • Charged Expenditure, and
  • Voted Expenditure

Nature of Charged Expenditure (Article 113)

  • Charged expenditure refers to that category of government expenditure which is charged on the Consolidated Fund of India.
  • Such expenditure is not submitted to the vote of the Lok Sabha, which means Parliament cannot approve, reject, or reduce it through voting.
  • However, Members of Parliament retain the right to discuss such expenditure in both Houses.

Items of Charged Expenditure

The following expenditures are charged on the Consolidated Fund of India:

  1. The emoluments and allowances of the President and other expenditure relating to his office;
  2. The salaries and allowances of the Chairman and the Deputy Chairman of the Council of States and the Speaker and the Deputy Speaker of the House of the People;
  3. Debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;
  4. The salaries, allowances, and pensions of the judges of the Supreme Court
  5. Pensions of High Court judges
  6. The salary, allowances and pension payable to or in respect of the Comptroller and Auditor- General of India;
  7. The salaries, allowances, and pensions of the Chairman and members of the Union Public Service Commission (UPSC) are also included.
  8. The administrative expenses of the Supreme Court, the office of the CAG, and the UPSC, including the salaries and allowances of their staff, are charged expenditure.
  9. Any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;
  10. Any other expenditure declared by this Constitution or by Parliament by law to be so charged.

Significance of Charged Expenditure

  • Charged expenditure plays an important role in maintaining the independence and impartiality of constitutional authorities, such as the judiciary and constitutional bodies.
  • It also ensures that essential obligations of the government, such as debt servicing, are met without interruption.

Charged expenditure is a crucial feature of India’s financial system, ensuring that key constitutional offices and essential government functions remain insulated from political pressures, while still being subject to parliamentary discussion and oversight.

FAQs

1. What is charged expenditure?

Charged expenditure refers to government expenditure that is charged on the Consolidated Fund of India and is not subject to voting in Parliament, although it can be discussed.

2. Which Articles deal with charged expenditure?

Charged expenditure is governed by Article 112 and Article 113 of the Constitution.

3. Can Parliament vote on charged expenditure?

No, Parliament cannot vote on charged expenditure. It can only discuss it.

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