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Excess grant

About Excess grant

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What is Excess grant

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.
 
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.
 
Article 115 of the Constitution states the following:
 
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...
 
...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.
 
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.
 

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