The Budget Session of Parliament, which had been in recess since 13 February 2025, reconvened on 10 March 2025 with both Houses resuming proceedings. Lok Sabha took up the discussion and voting on Demands for Grants for the financial year 2025-26 as part of the budgetary process under Article 113 of the Constitution.
Background
The Budget Session 2025 commenced on 31 January 2025 with the presentation of the Union Budget. After the initial phase, both Houses of Parliament were adjourned for recess on 13 February 2025 to allow departmentally related Standing Committees to examine the Demands for Grants of various ministries. The session was scheduled to reconvene on 10 March 2025 for the second phase, during which the core financial business of the session would be transacted.
Under Article 113 of the Constitution of India, no demand for a grant shall be made except on the recommendation of the President. The entire Financial Business, including the passing of the Appropriation Bill and the Finance Bill, was required to be completed before the end of the financial year on 31 March 2025.
Key Provisions
The second phase of the Budget Session involved several critical legislative milestones:
Demands for Grants: Lok Sabha debated and voted on Demands for Grants for various ministries and departments. Ministries including Defence, Home Affairs, Education, and Health were among those whose allocations were scrutinised.
Appropriation Bill 2025: Following the completion of voting on Demands for Grants, the Appropriation Bill relating to the Demands for Grants for 2025-26 was passed by Lok Sabha on 21 March 2025.
Finance Bill 2025: The Finance Bill, 2025 was passed by Lok Sabha on 25 March 2025, giving legislative effect to the taxation proposals announced in the Union Budget.
Rajya Sabha: Both the Appropriation Bill and Finance Bill were returned by Rajya Sabha on 27 March 2025, completing the legislative requirement for fiscal authorisation.
Other legislation: Parliament also took up the Disaster Management (Amendment) Bill, 2024, and the Immigration and Foreigners Bill, among other legislative items during this phase.
Implications for Practitioners
The completion of Financial Business before 31 March 2025 ensured continuity in government expenditure authorisation for the new financial year. Practitioners in taxation, corporate law, and regulatory compliance should note that the Finance Act, 2025 introduces changes to direct and indirect tax provisions that will require assessment of client exposure and compliance obligations.
The passage of the Disaster Management (Amendment) Bill and other substantive legislation during this session means practitioners across multiple practice areas will need to track the subordinate legislation and rules that will follow. The Budget Session 2025 saw a total of 7 Bills introduced and 4 Bills passed, reflecting a productive legislative calendar during the second phase.
Legal professionals advising government contractors, defence suppliers, and entities dependent on budgetary allocations should review the specific Demand for Grants relevant to their clients for changes in allocation patterns.