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	Excess grant is the money given to the government when the already allocated money for expenditure for that year does not turn out to be enough and extra money is sought. The demand for excess grant is provided for under Article 115 of the Indian Constitution. This demand for extra money or excess grants is made when the expenditure has been incurred after a financial year has expired.</div>
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	The Comptroller and Auditor General (CAG) brings the demand for an excess grant to the notice of Parliament through a report on appropriation account. The excess grant is then examined by the Public Accounts Committee, which makes recommendations regarding their regularisation in its report to Parliament.</div>
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	<strong>Article 115 of the Constitution states the following:</strong></div>
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	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...</div>
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	...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 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.</div>
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	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.</div>
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What is Excess grant, Excess grant Definition, Excess grant News

Excess grant

What is Excess grant

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	Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha be submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement.&nbsp;</div>
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	Generally, one Demand for Grant is presented in respect of each ministry or department. However, more than one demand may be presented for a ministry or department depending on the nature of expenditure. With regard to Union Territories without legislature, a separate demand is presented for each of the Union Territories. Each Demand first gives the totals of &#39;voted&#39; and &#39;charged&#39; expenditure as also the &#39;revenue&#39; and &#39;capital&#39; expenditure included in the demand separately, and also the grand total of the amount of expenditure for which the demand is presented.&nbsp;</div>
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	This is followed by the estimates of expenditure under different major heads of account. The breakup of the expenditure under each major head between &#39;Plan&#39; and &#39;Non-Plan&#39; is also given. The amounts of recoveries taken in reduction of expenditure in the accounts are also shown. A summary of Demands for Grants is given at the beginning of the Budget document, while details of &#39;New Service&#39; or &#39;New Instrument of Service&#39;, such as formation of a new company, undertaking or a new scheme, etc, if any, are indicated at the end of the document.</div>
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	Each demand normally includes the total provisions required for a service; that is, provisions on account of revenue expenditure, capital expenditure, grants to state and Union Territory governments, and also loans and advances relating to the service.&nbsp;</div>
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	In cases where the provision for a service is entirely for expenditure charged on the Consolidated Fund of India, for example, interest payments (Demand for Grant No 35), a separate Appropriation, as distinct from a Demand, is presented for that expenditure and it is not required to be voted by the Lok Sabha. However, where expenditure on a service includes both &#39;voted&#39; and &#39;charged&#39; items of expenditure, the latter are also included in the demand presented for that service but the &#39;voted&#39; and &#39;charged&#39; provisions are shown separately in that demand.</div>
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What is Demand for Grants, Demand for Grants Meaning, Demand for Grants Definition

Demand for Grants

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	Capital expenditure is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividend in future.</div>
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	<strong>Understanding capital expenditure</strong></div>
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	Capital spending is associated with investment or development spending, where expenditure has benefits extending years into the future. Capital expenditure includes money spent on the following:</div>
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		Acquiring fixed and intangible assets</li>
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		Upgrading an existing asset</li>
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		Repairing an existing asset</li>
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		Repayment of loan</li>
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	<strong>Why is capital expenditure important?</strong></div>
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	Capital expenditure, which leads to the creation of assets are long-term in nature and allow the economy to generate revenue for many years by adding or improving production facilities and boosting operational efficiency. It also increases labour participation, takes stock of the economy and raises its capacity to produce more in future.</div>
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	Along with the creation of assets, repayment of loan is also capital expenditure, as it reduces liability.</div>
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	However, the government has to be cautious with the expenditure. In the financial year 2019-20, capital expenditure was 14.2 per cent of Budget Estimates. The government had to cut public spending sharply towards the end of the financial year in order that the deficit target could be met. Total expenditure fell by 0.3 percentage points in 2018-19 over 2017-18. This includes a 0.4 percentage point slash in revenue expenditure and 0.1 percentage point hike in capital expenditure.</div>
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	<strong>How is capital expenditure different from revenue expenditure?</strong></div>
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	Unlike capital expenditure, which creates assets for the future, revenue expenditure is one that neither creates assets nor reduces any liability of the government. Salaries of employees, interest payment on past debt, subsidies, pension, etc, fall under the category of revenue expenditure. It is recurring in nature.</div>
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What is Capital Expenditure, Capital Expenditure Meaning, Budget News, Capital Expenditure Types

Capital Expenditure

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	The Union Budget, which is presented by the Finance Minister of India, comprises Capital Budget and Revenue Budget. The Capital Budget is further categorised into capital receipts and capital expenditure.</div>
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	<strong>What are Capital Receipts?</strong></div>
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	Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts. Loans from the general public, foreign governments and the Reserve Bank of India (RBI) form a crucial part of capital receipts.</div>
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	<strong>Understanding capital receipts</strong></div>
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	Capital receipts are loans taken by the government from the public, borrowings from foreign countries and institutes, and borrowings from the RBI. Recovery of loans given by the Centre to states and others is also included in capital receipts. In the balance sheet, capital receipts are mentioned in the liabilities section. The capital receipt has a nature of non-recurrence.</div>
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	All capital receipts are tax-free, unless there is a proviso to tax it. Capital receipts can be both non-debt and debt receipts</div>
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	<strong>Non-debt capital receipts</strong></div>
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	Non-debt receipts are those which do not incur any future repayment burden for the government. Almost 75 per cent of the total budget receipts are non-debt receipts.</div>
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	<strong>Examples of non-debt capital receipts:</strong> Recovery of loans and advances, disinvestment, issue of bonus shares, etc</div>
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	<strong>Debt capital receipts</strong></div>
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	Debt Receipts have to be repaid by the government. Around 25 per cent of government expenditure is financed through borrowing. A reduction in debt receipt (or borrowing) can be a big leap for the economy&#39;s financial health. Most of the capital receipts of the government are debt receipts</div>
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	<strong>Examples of debt capital receipts: </strong>Market loans, issuance of special securities to public-sector banks, issue of securities, short-term borrowings, treasury bills, securities against small savings, state provident funds, relief bonds, saving bonds, gold bonds, external debt, etc, are all example of debt capital receipts.</div>
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