Railway Accounts Department Examinations

Showing posts with label Economic cut. Show all posts
Showing posts with label Economic cut. Show all posts

Friday, May 15, 2020

Cut Motion

Cut Motion


     Part of Parliamentary control over Railway Finances.  

      Motion means Proposal /suggestion ( to the Parliament)


     A special power vested in Members of Lok Sabha to reduce any Demand for Grant


     Exercised while discussing the Demands for Grants


     Consequence:  If the Cut Motion is adopted, it amounts to no-confidence Vote. If the Govt fails to jot up the numbers in Lok Sabha, it is obliged to resign according to the norms of House.


     The decision to accept a Cut Motion relies solely on the Speaker of the Lok Sabha as per Rules in force.


     Members can also table notices in electronic form through e-portal specially developed for the purpose.




1.    Disapproval of Policy Cut: Demand is reduced to Rupee One.


2.    Economic Cut: Reduction of Demand for Grant to a specific amount.


3.    Token Cut: The amount of the Demand is reduced by just Rs. 100. This is to ventilate the specific grievance /displeasure.




Type of Cut

Demand for Grant proposed

Amount of


Demand for

Grant passed



Policy Cut

Rs. 1,00,000

Rs. 99,999

Re 1

Here agreeing the

amount always Re 1 only.

Economic Cut

Rs. 1,00,000

Rs. 30,000

Rs. 70,000

Any amount of cut.

 That is either Rs. 30,000

 or any specific amount

within Rs. 1,00,000

Token Cut

Rs. 1,00,000

Rs. 100

Rs. 99,900

Here, the amount of cut

 always Rs. 100 being Token.