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	A cut motion is a special power vested in members of the Lok Sabha to oppose a demand being discussed for specific allocation by the government in the Finance Bill as part of the Demand for Grants. If the motion is adopted, it amounts to a no-confidence vote, and if the government fails to jot up numbers in the lower House, it is obliged to resign according to the norms of the House.</div>
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	The decision to accept a cut motion relies solely on the Speaker of the House. He decides whether a cut motion is admissible under the rules or not. If a notice of a motion to reduce any demand for a grant has not been given a day prior to the day on which the demand is under consideration, any member may object to the moving of the motion, and such objection prevails, unless the Speaker allows the motion to be made.</div>
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	<strong>Types of cut motion</strong></div>
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	Disapproval of policy cut: A disapproval of policy cut demand seeks the amount of the demand be reduced to Re 1, representing the disapproval of the policy undermining the demand. However, if a member moves the cut, they have to indicate in precise terms the details of the policy which they want to discuss and should be confined to the specific points mentioned in the cut notice.</div>
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	Economic cut: The economic cut motion calls for a reduction in the allocation of the demand to a specific amount. It represents the economy that can be affected. Such a specified amount may either be a lump-sum reduction in the demand or omission or reduction of an item in the demand. The notice has to indicate briefly and precisely the particular matter on which a discussion is sought to be raised.</div>
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	<strong>Token cut:</strong> A token cut motion is moved so that the amount of the demand is reduced by Rs 100. This is to ventilate a specific grievance that is within the sphere of the responsibility of the Government of India.</div>

RELATED BUDGET TERMS

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What is Cut Motion, Cut Motion News, Cut Motion Definition

Cut Motion

What is Cut Motion

When a piece of legislation is yet to be passed as a law by the Houses of Parliament, it is termed a Bill. A Finance Bill is a Bill that, as the name suggests, concerns the country&#39;s finances &mdash; it could be about taxes, government expenditures, government borrowings, revenues, etc. Since the Union Budget deals with these things, it is passed as a Finance Bill.<br />
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Rule 219 of the Rules of Procedure of Lok Sabha states: &lsquo;Finance Bill&rsquo; means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the following financial year and includes a Bill to give effect to supplementary financial proposals for any period.<br />
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There are different kinds of Finance Bills &mdash; the most important of them is the Money Bill. The Money Bill is concretely defined in Article 110. A Money Bill is certified by the Speaker as such &mdash; in other words, only those Financial Bills that carry the Speaker&rsquo;s certification are Money Bills.<br />
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Article 110 states that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:<br />
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(a) the imposition, abolition, remission, alteration or regulation of any tax;<br />
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(b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;<br />
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(c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;<br />
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(d) the appropriation of moneys out of the consolidated Fund of India;<br />
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(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;<br />
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(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or<br />
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(g) any matter incidental to any of the matters specified in sub clause (a) to (f)<br />
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A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes<br />
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If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final<br />
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There shall be endorsement of every Money Bill when it is transmitted to the Council of States under Article 109, and when it is presented to the President for assent under Article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill.

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What is Finance Bill, Finance Bill Meaning, Finance Bill Definition

Finance Bill

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	Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha be submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement.&nbsp;</div>
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	Generally, one Demand for Grant is presented in respect of each ministry or department. However, more than one demand may be presented for a ministry or department depending on the nature of expenditure. With regard to Union Territories without legislature, a separate demand is presented for each of the Union Territories. Each Demand first gives the totals of &#39;voted&#39; and &#39;charged&#39; expenditure as also the &#39;revenue&#39; and &#39;capital&#39; expenditure included in the demand separately, and also the grand total of the amount of expenditure for which the demand is presented.&nbsp;</div>
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	This is followed by the estimates of expenditure under different major heads of account. The breakup of the expenditure under each major head between &#39;Plan&#39; and &#39;Non-Plan&#39; is also given. The amounts of recoveries taken in reduction of expenditure in the accounts are also shown. A summary of Demands for Grants is given at the beginning of the Budget document, while details of &#39;New Service&#39; or &#39;New Instrument of Service&#39;, such as formation of a new company, undertaking or a new scheme, etc, if any, are indicated at the end of the document.</div>
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	Each demand normally includes the total provisions required for a service; that is, provisions on account of revenue expenditure, capital expenditure, grants to state and Union Territory governments, and also loans and advances relating to the service.&nbsp;</div>
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	In cases where the provision for a service is entirely for expenditure charged on the Consolidated Fund of India, for example, interest payments (Demand for Grant No 35), a separate Appropriation, as distinct from a Demand, is presented for that expenditure and it is not required to be voted by the Lok Sabha. However, where expenditure on a service includes both &#39;voted&#39; and &#39;charged&#39; items of expenditure, the latter are also included in the demand presented for that service but the &#39;voted&#39; and &#39;charged&#39; provisions are shown separately in that demand.</div>
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