Which one of the following are advance grants made by the House of Peo

Which one of the following are advance grants made by the House of People in respect of the estimated expenditure for a part of the ensuing financial year, pending the regular passage of the budget ?

Supplementary grants
Special grants
Vote on credit
Vote on account
This question was previously asked in
UPSC CAPF – 2009
The correct option is D (Vote on account).
– A Vote on Account is a grant made by the Lok Sabha in advance to the government to meet the estimated expenditure for a part of the financial year, typically the first two months, pending the regular passage of the demands for grants and the Appropriation Bill related to the full budget. It allows the government to continue functioning and meet its essential expenses until the complete budget is approved.
– Supplementary Grants are needed when the amount authorised by Parliament through the appropriation act for a service for the current financial year is found to be insufficient, or when a need arises during the current financial year for expenditure upon a new service not contemplated in the annual financial statement.
– Special Grants is not a standard term used in the Indian budgetary process in this context.
– Vote on Credit is granted by Lok Sabha to meet 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 financial statement. It is granted for exceptional circumstances.
Article 116 of the Constitution deals with Votes on account, Votes of credit, and exceptional grants. A Vote on Account is typically for about one-sixth of the total expenditure for the year and involves only expenditure demands, not revenue proposals.
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