Article 203 of the Costitution of India with Case law
Article 203 of the Constitution of India
Title: Procedure in Legislature with respect to Estimates
🔹 Text of Article 203:
(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 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.
📘 Explanation of Article 203:
This Article governs how budget estimates are presented and approved in the State Legislative Assembly.
✅ Key Provisions:
| Clause | Description |
|---|---|
| 203(1) | Expenditure charged upon the Consolidated Fund of the State (like salaries of High Court judges, Speaker, etc.) is not votable by the Assembly — it can only be discussed. |
| 203(2) | Other expenditure is placed in the form of demands for grants, and the Assembly may approve, reduce, or reject these. |
| 203(3) | A demand for a grant can be made only on the Governor’s recommendation, reflecting executive control over public finance. |
📌 Key Definitions:
Consolidated Fund of the State: The fund into which all revenues received by the State Government, loans, and money received in repayment of loans are deposited.
Charged Expenditure: Expenditure that is not subject to vote of the legislature (e.g., salaries of constitutional authorities).
Demand for Grant: A proposal or request made to the Legislature for approval of expenditure.
⚖️ Important Case Laws on Article 203:
1. State of Madhya Pradesh v. Bharat Singh (1967 AIR 1170, SCR (2) 454)
Issue: Whether State Legislature can change or refuse demands in the budget.
Held: Supreme Court upheld the authority of the Legislature to approve or reject demands, as per Article 203(2).
Relevance: Reinforces that only the charged expenditures are beyond vote, and the rest are within the legislature's discretion.
2. M. Karunanidhi v. Union of India (1979 AIR 898)
Issue: On separation of powers and legislative competence in financial matters.
Held: Emphasized the distinct roles of the executive and legislature — while the Governor (executive) recommends demands, the legislature has power over approval (Article 203(2)).
Relevance: Supports the constitutional structure established under Article 203.
3. State of Punjab v. Satpal Dang (AIR 1969 SC 903)
Issue: Whether the Governor can withhold demands for political reasons.
Held: Though Governor must act on the advice of the Council of Ministers, he must not arbitrarily withhold financial proposals.
Relevance: Relates to Governor’s role in Article 203(3).
✅ Summary Table of Article 203:
| Clause | Provision | Effect |
|---|---|---|
| 203(1) | Charged expenditures are not votable | Only discussed, not put to vote |
| 203(2) | Other expenditures submitted as Demands for Grants | Assembly can approve, reduce, or reject |
| 203(3) | Governor’s recommendation is needed for demands | Executive approval is a prerequisite |
📝 Examples of Charged Expenditures:
Salaries and allowances of:
Governor
Speaker and Deputy Speaker
High Court Judges
State Public Service Commission members
Debt servicing (interest and repayment)
🔄 Related Articles:
| Article | Subject |
|---|---|
| 202 | Annual financial statement (State Budget) |
| 204 | Appropriation Bills |
| 206 | Supplementary, additional, or excess grants |
📌 Conclusion:
Article 203 balances executive control and legislative oversight in state finances.
It ensures essential, constitutional expenditures are protected from political interference.
At the same time, it empowers the Legislative Assembly to control other spending, upholding democratic accountability.
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