All Exams Test series for 1 year @ ₹349 only

Economy Cut Motion - Indian Polity Notes

While reading the Indian Budget, you may have noted the Demand for Grants. These are often expressed requests in relation to the funding offered for each Ministry. However, because Parliament has the ability to oversee the government's spending, it may not be able to approve all demands. Cut motions are motions in the legislature that seek to reduce demand. Here will discuss Economy Cut Motion which is a type of Cut Motion that is important for UPSC Exam Polity Preparation.

Economy Cut Motion

What Is An Economy Cut Motion?

  • The economy-cut motion proposes a reduction in demand allocation to a particular level.
  • It is a representation of the economy that might be impacted. A stated quantity might represent a one-time reduction in demand or the omission or reduction of a demand item.
  • The notice must state the specific topic for which a conversation is requested in a concise and explicit manner.
Conclusion

Conclusion

Cut motions allow members of the Lok Sabha the option to vote against demand in the government's Financial Bill. If Parliament passes a cut resolution and the government lacks the necessary numbers, it is required to resign under Lok Sabha rules. Thus, cut motions hold an important role as checks and balances in the Indian Parliamentary system.

FAQs

Question: What is a Cut Motion in the Indian Parliament?

Answer: A Cut Motion is a parliamentary tool that allows members to question or reduce specific budget allocations proposed by the government during the passing of the annual budget.

Question: What are the types of Cut Motions?

Answer: There are three types of Cut Motions: Disapproval of Policy Cut, Economy Cut, and Token Cut. Each serves a specific purpose in questioning government expenditure.

Question: What is the purpose of an Economy Cut Motion?

Answer: The Economy Cut Motion seeks to reduce budget allocations, suggesting that the same objective can be achieved with lesser expenditure by improving efficiency.

Question: Who can move a Cut Motion in the Indian Parliament?

Answer: Any Member of Parliament (MP) in the Lok Sabha can move a Cut Motion during the budget session to challenge or suggest changes to government expenditures.

Question: How does a Cut Motion affect the government?

Answer: If a Cut Motion is passed, it can indicate a lack of confidence in the government. However, Cut Motions are rarely passed due to the ruling party’s majority in the Lok Sabha.

MCQs

1. What is the primary objective of an Economy Cut Motion?

A) To reject the budget completely

B) To disapprove of a specific government policy

C) To reduce expenditure by suggesting efficiency

D) To propose an alternative budget

Answer: (C) See the Explanation

An Economy Cut Motion aims to reduce the proposed budget allocation, highlighting that the same outcome can be achieved with improved efficiency and reduced expenditure.

2. Which house of Parliament can move a Cut Motion?

A) Lok Sabha only

B) Rajya Sabha only

C) Both Lok Sabha and Rajya Sabha

D) None of the above

Answer: (A) See the Explanation

A Cut Motion can be moved only in the Lok Sabha as it holds financial powers under the Constitution of India, while the Rajya Sabha does not have such powers.

3. What happens if a Cut Motion is passed in the Lok Sabha?

A) The government falls

B) The budget is rejected

C) It indicates a lack of confidence in the government

D) The Prime Minister must resign

Answer: (C) See the Explanation

If a Cut Motion is passed, it reflects a lack of confidence in the government, though it rarely occurs due to the ruling party's majority in the Lok Sabha.

4. Which of the following is NOT a type of Cut Motion?

A) Economy Cut

B) Policy Cut

C) Token Cut

D) Total Cut

Answer: (D) See the Explanation

There are three types of Cut Motions: Disapproval of Policy Cut, Economy Cut, and Token Cut. There is no such thing as a "Total Cut" in parliamentary procedure.

5. What does a Token Cut Motion signify?

A) A complete rejection of the budget

B) A reduction in the allocation to highlight a specific grievance

C) A call for reallocation of funds

D) An increase in the proposed budget

Answer: (B) See the Explanation

A Token Cut Motion signifies a symbolic reduction in allocation, typically by ₹100, to highlight a specific grievance or issue related to government expenditure.

GS Mains Questions and Model Answers

Q1: Analyze the significance of Cut Motions in ensuring accountability in parliamentary democracy.

Answer: Cut Motions are essential tools for ensuring accountability in parliamentary democracy. They allow MPs to question budget allocations, highlight inefficiencies, and suggest changes. By providing a platform for debate, Cut Motions ensure transparency in government expenditure. Although rarely passed, they reflect the opposition’s ability to scrutinize the ruling party’s fiscal policies. Their significance lies in fostering informed discussions and upholding democratic checks and balances. However, their limited success in the Lok Sabha due to ruling party majorities underlines the need for robust opposition and active parliamentary participation.

Q2: Evaluate the role of Economy Cut Motions in promoting fiscal discipline in India.

Answer: Economy Cut Motions play a vital role in promoting fiscal discipline by highlighting inefficiencies in government spending. They urge the government to achieve objectives with reduced expenditure, encouraging optimal resource utilization. While their practical impact is limited due to political dynamics, these motions draw public and parliamentary attention to budgetary concerns. They also promote discussions on cost-effective governance. Strengthening parliamentary committees and ensuring bipartisan support can enhance the effectiveness of Economy Cut Motions in achieving fiscal responsibility.

Q3: Discuss the challenges associated with the implementation of Cut Motions in the Indian parliamentary system.

Answer: Challenges in implementing Cut Motions include the ruling party’s majority in the Lok Sabha, which limits their passage, and the lack of meaningful opposition in some cases. The complexity of budgetary processes and limited time for detailed discussions further weaken their impact. Additionally, political partisanship often overshadows constructive debate. Addressing these challenges requires empowering parliamentary committees, allocating more time for budget discussions, and fostering bipartisan cooperation. These measures can ensure that Cut Motions serve their purpose of enhancing transparency and accountability in governance.

Previous Year Questions on Economy Cut Motion

1. UPSC CSE Prelims 2021:

Question: Which of the following statements is correct about a Cut Motion?

A) It can be moved in both Lok Sabha and Rajya Sabha.
B) It can only be moved in the Lok Sabha.
C) It is used to increase budget allocations.
D) It is passed by the President of India.

Answer: (B)

Cut Motions can only be moved in the Lok Sabha, as it holds exclusive financial powers under the Constitution of India.

2. UPSC CSE Mains 2020:

Question: Assess the role of Cut Motions in enhancing the accountability of the executive to the legislature.

Answer: Cut Motions enhance the executive's accountability to the legislature by allowing MPs to scrutinize budgetary allocations and suggest changes. They promote transparency in government spending and encourage discussions on fiscal policies. However, their limited success due to ruling party dominance highlights the need for strengthening parliamentary committees and bipartisan debate to maximize their impact.

*The article might have information for the previous academic years, please refer the official website of the exam.
How likely are you to recommend Prepp.in to a friend or a colleague?
Not so likely
Highly likely

Comments

No comments to show
UPSC CSE (IAS) 2027 Prelims Mock Test Series
Live Quizzes
Free
• Live
UPSC IAS : Medieval History: Delhi Sultanate - II
12 Minutes
10 Questions
20 Marks
English, Hindi
EASY
Test will end on 3rd Aug, 10:00 AM
View More
Quizzes
Free
31 July 2026 Daily CA Quiz for UPSC & State PSCs
8 Minutes
5 Questions
10 Marks
English, Hindi, Telugu +7 More
MEDIUM
Attempted by 473 aspirants in 12 hours
Free
30 July 2026 Daily CA Quiz for UPSC & State PSCs
8 Minutes
5 Questions
10 Marks
English, Hindi, Telugu +7 More
MEDIUM
Attempted by 482 aspirants in 12 hours
View More
Live Tests
Free
• Live
UPSC IAS : GS - Indian Geography - Subject Knowledge Test
35 Minutes
30 Questions
60 Marks
English, Hindi
Test will end in 21:30:25
Free
• Live
Live Test : UPSC CSE Prelims GS 2027 (July 31 - 03 Aug)
120 Minutes
100 Questions
200 Marks
English, Hindi
MEDIUM
Test will end on 3rd Aug, 07:00 PM
View More
Full Tests
plus
Full Test - 02: UPSC CSE Prelims CSAT (Paper-II)
120 Minutes
80 Questions
200 Marks
English, Hindi
MEDIUM
Attempted by 16 aspirants in 12 hours
Free
Full Test - 01: UPSC CSE Prelims CSAT (Paper-II)
120 Minutes
80 Questions
200 Marks
English, Hindi
MEDIUM
Attempted by 15 aspirants in 12 hours
Previous Year Papers
plus
UPSC CSE Prelims 2026 GS Paper 1 Question Paper (24-May-2026)
120 Minutes
100 Questions
200 Marks
14,624 Attempted
English, Hindi
MEDIUM
Attempted by 119 aspirants in 12 hours
plus
UPSC CSE Prelims 2026 CSAT Paper 2 Question Paper (24-May-2026)
120 Minutes
80 Questions
200 Marks
14,626 Attempted
English, Hindi
MEDIUM
Attempted by 120 aspirants in 12 hours
View More