Which one of the following pairs is correctly matched ?
Supplementary Grant - Granted for a special purpose
Excess Grant - Voted by the Lok Sabha after the financial year
Vote of Credit - Funds can be made available by re-appropriation
Token Grant - Blank cheque
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC Combined Section Officer – 2024
A) Supplementary Grant – Granted for a special purpose. Incorrect. Supplementary grants are sought when the amount authorized by Parliament through the annual Appropriation Act for a particular service for the current financial year is found to be insufficient.
B) Excess Grant – Voted by the Lok Sabha after the financial year. Correct. If the money spent on any service during a financial year is in excess of the amount granted for that service in that year, the excess expenditure is brought to the notice of Parliament by the Comptroller and Auditor General (CAG). The Lok Sabha then votes on the excess grant *after* the financial year has concluded.
C) Vote of Credit – Funds can be made available by re-appropriation. Incorrect. A Vote of Credit is granted to meet an unexpected demand upon the resources of India when, due to the magnitude or the indefinite character of the service, the demand cannot be stated with the details ordinarily given in a budget. It is a fresh grant by Parliament, not funds made available through re-appropriation (transferring funds between heads within an approved grant).
D) Token Grant – Blank cheque. Incorrect. A Token Grant is sought when funds are needed for a new service not previously contemplated in the budget, but funds can be made available by re-appropriation from savings in other approved grants. Only a token amount (like Re 1) is voted to allow Parliament to discuss and approve the introduction of the new service; it signifies Parliamentary approval for the principle of the expenditure, not a blank cheque.
– Excess Grant: Expenditure exceeded the grant in the previous financial year; needs regularization.
– Vote of Credit: Unexpected demand, indefinite nature/magnitude.
– Token Grant: Funds for a new service available via re-appropriation.