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	The word subvention means a grant of money or aid mostly paid by the government. Subvention and subvention schemes usually find a mention in advertisements put up by real estate developers, as subvention is one of the most advertised schemes floated by real estate companies to boost sales. Under subvention schemes, the home buyer, banker and the developer enter into a tripartite agreement where the buyer pays 5-20 per cent of the money upfront. The rest is paid by the bank in the form of a loan which is disbursed to the developer to continue the construction work.</div>
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	Importantly, the developer pays interest of the loan till the buyer takes possession of the property or till such time as mentioned in the buyer-developer agreement. Homebuyers can benefit from such schemes because their EMI only begins after the possession of the property has been taken. Developers benefit because such a scheme often increases the saleability of their project.</div>
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	<strong>How is subvention different from subsidy?</strong></div>
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	Subsidy is a grant, especially from the government to boost production and consumption. The government pays a part of the cost of production of certain goods or services. But a subvention scheme offers a relief in the buyer&rsquo;s loan interest burden but does not make anything free. The seller often adds the interest to be paid by him to the cost of the product.</div>
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	Apart from subvention schemes, builders queue up cash discounts, waiver of club membership charges, discounts and freebies during festive seasons to perk up sales. Home buyers can avail of subvention schemes, but they must be wary of the pitfalls that these come with. Developers tie up with financial institutions like banks and housing finance companies to pay for such projects. Under such schemes, the homebuyer remains the actual borrower. If the developer defaults on payments, it is the homebuyer whose credit rating is directly affected.</div>
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What are Subvention schemes, Subvention schemes Definition, Subvention schemes News

Subvention schemes

What are Subvention schemes

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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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What is Demand for Grants, Demand for Grants Meaning, Demand for Grants Definition

Demand for Grants

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	Central welfare schemes, implemented by the government to provide financial and other aids to individuals who cannot support themselves, can be categorised into two sections &mdash; centrally sponsored schemes and central sector schemes.</div>
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	Centrally Sponsored Schemes (CSS) are those schemes which are implemented by the state government but sponsored by the central government with a defined shareholding. At present, there are 30 centrally-sponsored schemes but these are umbrella programmes and they have many sub-schemes under them. The funding is borne by the states in the ratio of 50:50 or 90:10 or 75:25 or 70:30.</div>
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	These schemes are aimed at supplementing efforts undertaken by the state government because the central government has more resources at its disposal. These schemes can either be national or regional in character. In CSS, the funding by the central government works as an initiation, with further spending coming from states towards the cause.</div>
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	<strong>What is the difference between central sector schemes and centrally sponsored schemes?</strong></div>
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	Central sector schemes are implemented by the central government and the budget or financing needed for the scheme is entirely sourced by the central government. By comparison, the implementation of a centrally sponsored scheme is done by state governments. For example, the Mahatma Gandhi National Rural Employment Generation Scheme is a centrally sponsored scheme, while the National Rural Health Mission is a central sector scheme.</div>
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	Centrally sponsored schemes can be further divided into two sections &mdash; core of core schemes and core schemes. Green Revolution, White Revolution, Blue Revolution, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Krishi Sinchai Yojana, Pradhan Manti Awas Yojana, Swachh Bharat Mission, Mid-day meals in schools and National Livelihood Mission are some core schemes. Core of the core schemes, on the other hand, include the umbrella scheme for development of scheduled castes, umbrella scheme for development of minorities, and the Mahatma Gandhi National Rural Employment Generation Scheme. Core of core schemes are implemented for social inclusion and social protection, and they are fully funded by the central government.</div>

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What are Centrally sponsored schemes, Centrally sponsored schemes Definition, Centrally sponsored schemes News

Centrally sponsored schemes

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	Excess grant is the money given to the government when the already allocated money for expenditure for that year does not turn out to be enough and extra money is sought. The demand for excess grant is provided for under Article 115 of the Indian Constitution. This demand for extra money or excess grants is made when the expenditure has been incurred after a financial year has expired.</div>
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	The Comptroller and Auditor General (CAG) brings the demand for an excess grant to the notice of Parliament through a report on appropriation account. The excess grant is then examined by the Public Accounts Committee, which makes recommendations regarding their regularisation in its report to Parliament.</div>
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	<strong>Article 115 of the Constitution states the following:</strong></div>
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	If the amount authorised by any law made in accordance with the provisions of Article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or...</div>
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	...if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year, cause to be laid before both Houses of Parliament another statement showing the estimated amount of that expenditure or cause to be presented to the House of the People a demand for such excess, as the case may be.</div>
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	The provisions of Articles 112, 113 and 114 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant.</div>
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What is Excess grant, Excess grant Definition, Excess grant News

Excess grant

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	Central plan of the Union Budget is also called the annual plan. The five-year Plan is split into five annual parts and the government hopes to achieve the objectives of the five-year Plan using the central plan. The funding provided to the Central Plan by the Union government is known as Budget support. The extra-budgetary resources required for the Central Plan come from public enterprises.</div>
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	The Central Plan outlay goes to different sectors like energy, transport, social services, general economics services, communications, science and tech, rural development, irrigation, etc.</div>

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