What is ‘Supplementary Grants’?

About Supplementary Grants:

• Article 115of the Indian Constitution provides for supplementary, additional, or excess grants.
  • When grants, authorised by the Parliament, fall short of the required expenditure, an estimate is presented before the Parliament for Supplementary or Additional grants.
  • These grants are presented and passed by the Parliament before the end of the financial year.
• When actual expenditure incurred exceeds the approved grants of the Parliament, the Ministry of Finance and Ministry of Railways present a Demand for Excess Grant.
• The Comptroller and Auditor General of India bring such excesses to the notice of the Parliament.
• The Public Accounts Committee examines these excesses and gives recommendations to the Parliament.
• The Demand for Excess Grants is made after the actual expenditure is incurred and is presented to Parliament after the end of the financial year in which the expenses were made.