Part V - Parliament • Article

Article 115 Simplified: Supplementary, additional or excess grants

What if the government runs out of money before the year ends? Article 115 allows them to ask for more money through 'Supplementary' or 'Additional' grants. They must follow the same process as the main Budget to get this extra cash approved.

Official Text

(1) The President shall— (a) if the amount authorised by any law made in accordance with the provisions of article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year; or (b) if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year, cause to be laid before both the Houses of Parliament another statement showing the estimated amount of that expenditure or cause to be presented to the House of the People a demand for such excess, as the case may be. (2) The provisions of articles 112, 113 and 114 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant.

Simple Meaning

Explain Like Ten

What if the government makes a budget but then a huge flood happens and they need more money to help people? Article 115 is like a backup request. The government can go back to Parliament and ask for extra money to cover the unexpected costs.

Student Mode

Article 115 deals with three types of mid-year funding requests: (1) Supplementary Grants: when the amount authorised for a service is found to be insufficient; (2) Additional Grants: when a need arises for a new service not contemplated in the budget; (3) Excess Grants: when money has been spent on a service in excess of the amount granted. Excess grants must be approved by the Public Accounts Committee before being presented to Parliament. These grants follow the same procedure as the main budget.

Example

If a major natural disaster occurs or a new welfare scheme is launched mid-year, the government presents a 'Supplementary Demand for Grants' under Article 115 in the winter session to seek Parliament's approval for additional spending.

Key Takeaway

The government can ask for extra money if the Budget falls short, but it needs Parliament's okay.

FAQs

What is the difference between a Supplementary Grant and an Excess Grant?

A Supplementary Grant is sought *during* the financial year before the money is spent because the budget falls short. An Excess Grant is sought *after* the financial year has ended to regularize unauthorized excess spending that already occurred.

Does the government need parliamentary approval for excess spending?

Yes. Under Article 115(1)(b), any excess expenditure must be presented to the Lok Sabha as a demand for an excess grant, ensuring executive accountability.

Who audits excess expenditures before they are presented to Parliament?

The Comptroller and Auditor-General (CAG) identifies the excess, and the Public Accounts Committee (PAC) examines it and recommends it for regularization.

Quiz

Which grant is used to regularize expenditure that has already exceeded the budget allocation after the financial year ends?

Answer: Excess Grant

Demands for supplementary or excess grants must follow the same procedure as:

Answer: The Annual Budget