Article 206 of the Costitution of India with Case law
🔹 Article 206 of the Constitution of India
Title: Votes on account, votes of credit and exceptional grants
🔸 Text of Article 206
(1) Notwithstanding anything in the foregoing provisions of this Chapter, the Legislative Assembly of a State shall have power—
(a) to make any grant in advance in respect of the estimated expenditure for a part of any financial year, pending the completion of the procedure prescribed in Article 203 for the voting of such grant and the passing of the law in accordance with the provisions of Article 204 with respect to that expenditure;(b) to make a grant for meeting an unexpected demand upon the resources of the State, when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an annual financial statement;
(c) to make an exceptional grant which forms no part of the current service of any financial year;
and the provisions of Articles 203 and 204 shall have effect in relation to the making of any such grant as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement.
🔸 Explanation of Article 206
Article 206 deals with special types of grants that a State Legislature can approve outside the normal budget process. These include:
| Type of Grant | Description |
|---|---|
| Vote on Account | Temporary grant to cover expenditure for part of a financial year, pending the actual budget approval (Article 203). |
| Vote of Credit | Granted for unexpected and urgent expenses, such as disaster relief or emergencies. No need to provide detailed estimates. |
| Exceptional Grant | For expenditure not part of ordinary government service, such as special schemes, missions, or international events. |
These grants allow the government to function without interruption even when the full budget is not passed yet.
🔸 Related Provisions
| Article | Topic |
|---|---|
| Article 202 | Annual Financial Statement (State Budget) |
| Article 203 | Procedure for voting on demands for grants |
| Article 204 | Appropriation Bills |
| Article 206 | Special provisions for grants in exceptional cases |
🔸 Important Case Laws on Article 206
Though Article 206 is primarily financial and procedural in nature and rarely litigated directly, courts have made relevant observations in fiscal and constitutional context:
🧑⚖️ State of Punjab v. Gurdial Singh, AIR 1980 SC 319
Held: Government expenditure must be sanctioned by law.
Relevance: Reinforced the principle that State expenditure must follow constitutional procedures — including Votes on Account under Article 206 when necessary.
🧑⚖️ Sundarjas Kanyalal Bhatija v. Collector, Thane, AIR 1989 SC 935
While not directly on Article 206, this case emphasized proper legislative authorisation for expenditures, reaffirming that budgetary and grant processes must comply with constitutional norms.
🧑⚖️ Chandrakant Kalyandas Kakodkar v. State of Maharashtra, AIR 1970 SC 1935
Discussed legislative competence and grant approvals.
Confirmed that special grants must still go through a voting process, though streamlined under Article 206.
🔸 Summary Table
| Provision | Purpose |
|---|---|
| Vote on Account | Temporary financial approval till the actual budget is passed |
| Vote of Credit | Emergency financial approval without full details |
| Exceptional Grant | One-time expenditure not part of normal budget |
🔸 Conclusion
Article 206 is a financial safety valve that ensures:
The State Government doesn't come to a standstill due to procedural delays.
Provision for emergency and exceptional situations.
Continuation of constitutional checks and balances via legislative scrutiny, even in special cases.
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