The Constitution of India
Article 203
Procedure in Legislature with respect to estimates
(1) So much of the estimates as relates to expenditure charged upon the Consolidated Fund of a State shall not be submitted to the vote of the Legislative Assembly, but nothing in this clause shall be construed as preventing the discussion in the Legislature of any of those estimates.
(2) So much of the said estimates as relates to other expenditure shall be submitted in the form of demands for grants to the Legislative Assembly, and the Legislative Assembly shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein.
(3) No demand for a grant shall be made except on the recommendation of the Governor.
Why this exists
This provision mirrors the British parliamentary tradition of separating 'charged' expenditure (essential state obligations that shouldn't be subject to political horse-trading, such as constitutional officeholders' salaries) from discretionary spending, which requires democratic approval. It also enforces the principle that only the executive (through the Governor, acting on the Council of Ministers' advice) can initiate financial proposals, ensuring fiscal discipline and preventing the legislature from proposing unfunded or uncoordinated spending demands.
How courts read it
Courts have generally treated this as part of the broader scheme of legislative financial procedure (mirroring Article 113 at the Union level) and have been reluctant to interfere with the internal budgetary process of state legislatures, treating it largely as a matter of legislative and executive discretion rather than one open to extensive judicial review.
Common misconceptions
- Myth: The Legislative Assembly has no say at all over 'charged' expenditure.
Fact: The Assembly can still discuss and debate charged expenditure; it just cannot vote to approve, reject, or reduce it. - Myth: Any legislator can propose a new spending demand.
Fact: Only the Governor (acting on ministerial advice) can recommend a demand for a grant; individual legislators cannot introduce one independently.