The correct answer is option 1 - the Parliament. In India, no government expenditure can be incurred without the approval or sanction of the Parliament. The Parliament is the supreme legislative body in India and has the authority to make laws and control the government`s spending. It consists of two houses - the Lok Sabha and the Rajya Sabha. The Parliament scrutinizes and approves the budget presented by the government, which includes the allocation of funds for various expenses. This ensures transparency and accountability in the government`s financial decisions. The Prime Minister, President, and Supreme Court do not have the power to sanction government expenditure; it is solely in the hands of the Parliament.