The Expenditure ‘Charged’ upon the CFI & the Expenditure ‘Made’ from CFI
The expenditure ‘CHARGED’ upon the Consolidated Fund of India (CFI) and the expenditure ‘MADE’ from the CFI are two categories of government spending, distinguished by how they are approved and managed under India's financial framework.
1. Charged Expenditure
- Definition: This is the expenditure that is constitutionally mandated to be charged directly upon the Consolidated Fund of India.
- Approval Process:
- Non-Votable: Parliament does not vote on this expenditure but can only discuss it.
- It is considered essential for maintaining the independence and autonomy of certain constitutional offices and functions.
Examples of Charged Expenditure:
- President: Emoluments, allowances, and expenses related to the President's office.
- Presiding Officers of Parliament: Salaries and allowances of the Chairman and Deputy Chairman of Rajya Sabha and the Speaker and Deputy Speaker of Lok Sabha.
- Judiciary: Salaries and pensions of Supreme Court judges and pensions for High Court judges.
- CAG and UPSC: Salaries, allowances, and pensions of members of these bodies.
- Debt Charges: Interest payments and related costs for government borrowings.
- Legal Obligations: Payments for judgments, decrees, or arbitral awards.
2. Expenditure ‘Made’ from the Consolidated Fund of India
- Definition: This is the expenditure that is not charged but is "votable" by the Parliament. It includes most of the government’s day-to-day and developmental spending.
- Approval Process:
- Votable: Requires approval from the Lok Sabha (the Lower House of Parliament).
- Detailed Scrutiny: These expenditures are presented as demands for grants and are debated, amended, and then voted on.
Examples of Expenditure Made from CFI:
- Government Departments: Salaries of employees, operational costs, and administrative expenses.
- Developmental Programs: Spending on health, education, infrastructure, and social welfare schemes.
- Defense: Costs for defense services and military operations.
- Other Government Activities: Expenditures on scientific research, foreign affairs, and public welfare programs.
Key Differences
Aspect |
Charged Expenditure |
Expenditure Made |
Approval Process |
Non-votable by Parliament, only discussed. |
Must be voted upon and approved by Parliament. |
Scope |
Constitutionally mandated for specific purposes. |
Includes discretionary and developmental spending. |
Examples |
Salaries of constitutional authorities, debt charges. |
Salaries of government employees, welfare schemes. |
Purpose |
To ensure independence of critical institutions. |
To manage regular government functions and development. |
This distinction upholds constitutional propriety, ensuring critical institutions and functions are insulated from political interference, while providing democratic oversight for general expenditures.