PMF IAS Test Series for UPSC Prelims Banner Ad
PMF IAS Test Series for UPSC Prelims Banner Ad
  • Context (TH): The government had raised the demand for supplementary grants for MGNREGS.
  • Higher-than-budgeted revenue expenditure may push the fiscal deficit to 6% of GDP.

Types of Grants

Supplementary Demand for Grants

  • It is raised when the expenditure exceeds the Parliament-authorised amount for that year.
  • Parliament must pass this before the end of the financial year.

Additional Grant

  • It is raised if additional expenditure is needed upon an uncontemplated new service that budget year.

Excess Grant

  • It is granted when money is already spent on any service during a financial year over the amount granted for that service in the budget for that year.
  • The Lok Sabha votes on it after the financial year.
  • Before that, they must be approved by the Public Accounts Committee of Parliament.

Vote of Credit

  • It is granted for an unexpected demand on account of the service’s magnitude or indefinite character.
  • It is like a blank cheque given to the Executive by the Lok Sabha.

Exceptional Grant

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

Token Grant

  • It is granted for the re-appropriation of available funds without additional expenditure.
  • Article 115 is related to the supplementary, additional, or excess grants and Article 116 is related to the Votes on account, Votes of credit and exceptional grants.
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