SUPPLEMENTARY
GRANT - POLITY
News:
Lok Sabha passes ₹1.48
lakh crore supplementary grants for FY'23 without debate
What's
in the news?
●
Lok Sabha gave its approval to the Central
Government to spend an additional ₹1.48 lakh crore during the current financial
year 2022-23, amid uproar by Opposition parties on the Adani issue.
Key
takeaways:
●
In addition to the budget that contains
the ordinary estimates of income and expenditure for one financial year,
various other grants are made by the Parliament under extraordinary or special circumstances such as
1.
Supplementary Grant:
●
It is granted when the amount authorised
by the Parliament through the appropriation act for a particular service for
the current financial year is found to be insufficient
for that year.
2.
Additional Grant:
●
It is granted when a need has arisen
during the current financial year for additional
expenditure upon some new service not contemplated in the budget for that
year.
3.
Excess Grant:
●
It is granted when money has been spent on any service during a financial year in excess of the amount granted for
that service in the budget for that year.
●
It is voted
by the Lok Sabha after the financial year.
●
Before the demands for excess grants are
submitted to the Lok Sabha for voting, they must be approved by the Public
Accounts Committee of Parliament.
4.
Vote of Credit:
●
It is granted for meeting an unexpected demand upon the resources of India, when on
account of the magnitude or the indefinite character of the service, the demand
cannot be stated with the details ordinarily given in a budget.
●
Hence, it is like a blank cheque given to the Executive by the Lok Sabha.
5.
Exceptional Grant:
●
It is granted for a special purpose and forms no part of the current service of any
financial year.
6.
Token Grant:
●
It is granted when funds to meet the
proposed expenditure on a new service can be made available by reappropriation.
●
A demand for the grant of a token sum (of
Re 1) is submitted to the vote of the Lok Sabha and if assented, funds are made
available.
●
Reappropriation involves transfer of funds
from one head to another.
●
It
does not involve any additional expenditure.
Supplementary,
additional, excess and exceptional grants and vote of credit are regulated by
the same procedure which is applicable in the case of a regular budget.