Q. With reference to Excess Grant, consider the following statements:
1. It is granted 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.
2. It must be approved by the Public Accounts Committee of Parliament before they are submitted to the Lok Sabha for voting.
Which of the statements given above is/are correct?
Answer: B
Notes:
Exp) Option b is the correct answer.
Statement 1 is incorrect. Excess Grant is granted when money has been spent on any service during a financial year in excess of the amount granted for that service in the budget for that year. While Supplementary Grant is granted 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.
Statement 2 is correct. Excess grants must be approved by the Public Accounts Committee of Parliament before they are submitted to the Lok Sabha for voting. This creates more accountability with the financial matters.
