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Supplementary Grants

  Sep 22, 2020

Supplementary Grants

Q. Why in News?

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

Q. What is 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.

Q. What is need of 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.

Q. 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.

Q. 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.