Parliament – Sessions, Procedures, Motions, Committees etc

What are Supplementary Grants?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Article 115, 116

Mains level : Supplementary Grants

Finance Minister has tabled the first batch of Supplementary Demands for Grants for this financial year in the Lok Sabha.

Supplementary Demand for Grants

  • Article 115 of the constitution provides for Supplementary, additional or excess grants. (Note: Article 116 provides for Votes on account, votes of credit and exceptional grants.)
  • They are additional grants which are required to meet the expenditure of the government
  • Their demand is presented when the authorized amounts are insufficient and need for additional expenditure has arisen.

Why need supplementary grants?

  • When actual expenditure incurred exceeds the approved grants of the Parliament, the Ministry of Finance and Ministry of Railways presents a Demand for Excess Grant.
  • It is needed for government expenditure over and above the amount for which Parliamentary approval was already obtained during the Budget session.
  • When grants, authorised by the Parliament, fall short of the required expenditure, an estimate is presented before the Parliament for Supplementary or Additional grants.
  • These grants are presented and passed by the Parliament before the end of the financial year.

Who notices such grants?

  • The Comptroller and Auditor General of India bring such excesses to the notice of the Parliament.
  • The Public Accounts Committee examines these excesses and gives recommendations to the Parliament.

What are other grants?

  • Excess Grant: It is the grant in excess of the approved grants for meeting the requisite expenses of the government.
  • 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.
  • Token Grant: When funds to meet proposed expenditure on a new service can be made available by re-appropriation, 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.
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