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- 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.
- It is raised if additional expenditure is needed upon an uncontemplated new service that budget year.
- 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.
- It is granted for a particular purpose and forms no part of the current service of any financial year.
- It is granted for the re-appropriation of available funds without additional expenditure.