Types of Parliamentary Grants

• 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.