Current Affairs Questions

Explanation :

Context: Recently, the Lok Sabha has passed supplementary demand for grants for the second batch (2020-2021).

The budget contains the ordinary estimates of income and expenditure in a financial year.The parliament can make various other grants under extraordinary or special circumstances. These include:

Constitutional Provision

• Article 115: Supplementary, additional or excess grants
• Article 116: Votes on account, votes of credit and exceptional grants

Supplementary Grant

• It is granted if the amount authorized by the parliament through the appropriation act to be expended for a particular service for the current financial year is found to be insufficient for the purpose of that year.

Additional Grant

• It is granted when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the Budget for that year.

Excess Grant

• Itis 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.
• This demand for extra money or excess grants is made when the expenditure has been incurred after a financial year has expired.
• 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.

Vote of Credit

• It is granted for meeting an unexpected demand upon the resources of India, when on account of the magnitude or the indefinite character of the service, the demand cannot be stated with the details ordinarily given in a budget.
• Hence, it is like a blank cheque given to the Executive by the Lok Sabha.

Exceptional Grant

• It is granted for a special purpose and forms no part of the current service of any financial year.

Token Grant

• It is granted when funds to meet proposed expenditure on a new service can be made available by re-appropriation, a demand for the grant of a token sum may be submitted to the vote of the House and, if the House assents to the demand, funds may be so made available.