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Q74 (CAPF/2009) Polity & Governance › Parliament › Budgetary process Parliament Answer Verified

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 ?

Result
Your answer: —  Â·  Correct: D

Explanation

A 'Vote on Account' is a grant made in advance by the Lok Sabha (House of the People) to cover estimated expenditure for a part of the ensuing financial year [1][t1]. This mechanism is essential because the enactment of the Appropriation Bill and the full budget process often extend beyond the start of the new financial year on April 1st [c1][t3]. Under Article 116 of the Constitution, it allows the government to function and meet normal expenses pending the final passage of the budget [c1]. In contrast, 'Supplementary Grants' are sought for additional funds during the current year [t4][t7], while a 'Vote of Credit' acts as a 'blank cheque' for unexpected demands of indefinite character [c2]. 'Special' or 'Exceptional Grants' are for specific purposes outside the current service of any financial year [c2].

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 147
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