Q. Consider the following pairs regarding various grants made by the Parliament:
Grants Purpose/objective
1. Supplementar y Grant Granted for additional expenditure upon some new service not contemplated in the budget for that year.
2. Token Grant Granted when funds to meet the proposed expenditure on a new service can be made available by reappropriation.
3. Vote of credit Granted for meeting an unexpected demand upon the resources of India and is like a blank cheque given to the executive by Lok Sabha.
How many of the above pairs is/are correctly matched?
Exp) Option b is the correct answer.
Pair 1 is incorrect. Supplementary Grant is given 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. Additional Grant is given 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.
Pair 2 is correct. Token Grant is given when funds to meet the proposed expenditure on a new service can be made available by reappropriation. Reappropriation involves transfer of funds from one head to another. It does not involve any additional expenditure.
Pair 3 is correct. Vote of Credit 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.
