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The financial management of any organization must have a strong economic system backed by sound and effective accounting procedures and internal controls. A well-designed and well-managed accounting helps ensure proper control over funds. In this article, we will discuss the Grants and Funds in the Indian Budget.
Grants and Funds under extraordinary or special circumstances
The budget contains the standard estimates of income and expenditure during a fiscal year. The parliament can make different other grants under extraordinary or special circumstances. These include:
1. Supplementary Grant: it’s granted if the quantity authorized by the parliament through the appropriation act to be expended for a specific service for the present fiscal year is found to be insufficient for the aim of that year.
2. Additional Grant: it’s granted when a requirement has arisen during the present fiscal year for supplementary or additional expenditure upon some new service not contemplated within the allow that year.
3. Excess Grant: it’s granted when money has been spent on any service during a fiscal year in more than the quantity granted for that year. the stress for excess grants is made after the expenditure has actually been incurred and after the fiscal year to which it relates, has expired. All cases involving such excesses are delivered to the notice of parliament by the Comptroller and Auditor General through his report on the appropriation accounts. The excesses are then examined by the general public Accounts Committee which makes recommendations regarding their regularisation in its report back to the House.
4. Vote of Credit: it’s 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 can’t stand with the small print ordinarily given in an annual financial plan.
5. Exceptional Grants: it’s granted for an exceptional purpose which forms no part of the present service of any fiscal year
6. Token Grant: it’s granted when funds to satisfy proposed expenditure on a replacement service are often made available by re-appropriation, a requirement for the grant of a token sum could also be submitted to the vote of the House and, if the House assents to the demand, funds could also be so made available.
Supplementary, additional, excess, and exceptional grants and vote of credit follow an equivalent procedure as the enactment of the budget.
The constitution provides for 3 sorts of funds for the central government. These are:
1. Consolidated Fund of India (Article 266)
It is a fund of the govt of India, during which all receipts are credited and every one payment is debited. It includes
(i) All revenues received by the govt of India
(ii) All loans raised by the govt by the difficulty of treasury bills, loans or ways and means advances
(iii) Money received by the govt in repayment of loans
No money out of the Consolidated Fund of India shall be appropriated except in accordance with the law and for the needs and within the manner provided during this Constitution. meaning, the payment is often made out of the Consolidated Fund of India only approvingly of the parliament.
2. Public Account of India (Article 266)
All other public money received by or on behalf of the govt of India shall be entitled to the general public account of India. The payment out of this account is often made without parliament appropriation because it is operated by executive action. The public account includes judicious fund deposits, saving bank deposits, judicial deposits, etc.
3. Contingency Fund of India (Article 267)
The constitution provides the parliament to determine a Contingency Fund of India. The legislative assembly established the Contingency Fund of India in 1950. This fund is placed at the disposal of the president to enable advances to be made by him out of such funds for the needs of meeting unforeseen expenditure pending authorization of such expenditure by the parliament. This fund is operated by executive action.
In this article, we discussed the Grants and Funds in the Indian Budget.