Budget 2024: All you need to know about cut motion

Lok Sabha speaker Om Birla would also have a crucial role in admitting the Cut Motions.

The discussion and voting on the demands for grants of various ministries and departments in Lok Sabha is an integral part of the Union Budget. As Finance Minister Nirmala Sitharaman is going to present the Interim Budget for the financial year 2024-25 on February 1 in Parliament all eyes will be on the demands for grants. On the other hand, the opposition parties are likely to move Cut Motions to seek a wider debate on the allocations or demand for grants for a particular ministry after the presentation of Budget 2024.

The Finance Minister is expected to present an Interim Budget as the Lok Sabha elections are going to be held soon. The full-budget for FY 2024-25 is expected to be presented in July after the new government comes to power.

Cut Motions are widely used by the Opposition to express views on various government spending proposals in the Finance Bill in the Lok Sabha.

Lok Sabha speaker Om Birla would also have a crucial role in admitting the Cut Motions.

Also read: Budget 2024: What is Contingency Fund?

What is a Cut Motion?

A Cut Motion is a proposal moved by a Member of Parliament against a specific allocation for a government department or ministry in the Union Budget.

These motions are usually to oppose and seek a reduction or clarity in various Demands for Grants presented by the government. The demand for grants is part of the budget outlining the allocation of funds for various departments.
A member can move the motion on the ground of a grievance or a difference of opinion on policy matter and economy.

What is its significance?

Cut Motions provides an opportunity for MPs to raise their dissent over the allocation of funds for a specific programme or policy measure. While these motions are important in holding the government accountable for financial decisions and fund allocations, debates and discussions initiated provide in-depth analysis of government schemes and policies.

Moreover, these are tests of a government’s strength in the House. If a Cut Motion is accepted, it is considered a no-confidence vote and can lead to the collapse of the incumbent government.

Types of Cut Motions

There are three types of Cut Motions:

Policy Cut Motion: Such motions symbolise a strong disapproval of the policy associated with the demand and a member may seek to reduce the entire amount of the demand to Re 1.

Economy Cut Motion: Economy Cut Motions are moved to seek a specific cut in the allocation for a programme or department by highlighting potential wasteful expenditure, or efforts to cut costs.

Token Cut Motion: A symbolic reduction of Rs 100 in the demand is proposed in this motion. The motion serves as a platform to raise specific grievances or concerns related to the demand for grants for a government scheme.