Actual Article
Article 115: Supplementary, additional, excess and exceptional grants
- Supplementary and Additional Grants:
- The President shall, if the amount authorized 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, cause to be laid before both Houses of Parliament another statement showing the estimated amount of that expenditure.
- Excess Grants:
- If in respect of any financial year it is found that the amount authorized to be expended for a particular service has been exceeded, a demand for such excess shall be presented to the House of the People, and the provisions of Articles 112, 113, and 114 shall have effect in relation to such demand as they have effect in relation to any other expenditure.
- Exceptional Grants:
- The President shall also cause to be laid before both Houses of Parliament a statement showing the estimated amount of expenditure in respect of exceptional grants, which form no part of the current service of any financial year.
- Vote of Credit:
- The House of the People shall have power to make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in Article 113 for the voting of such grant and the passing of the law in accordance with the provisions of Article 114 in relation to that expenditure.
UPSC Notes for Article 115
Explanation:
- Supplementary and Additional Grants:
- When the funds authorized for a service are insufficient or when a new service requires funding not included in the annual financial statement, the President presents a supplementary or additional grant statement to Parliament.
- Excess Grants:
- If the expenditure on a service exceeds the authorized amount, a demand for excess grants is presented to the Lok Sabha, and it follows the same process as other expenditures.
- Exceptional Grants:
- These are grants for expenditures that do not form part of the current financial year’s services. The President presents a statement of estimated expenditure for such grants.
- Vote of Credit:
- The Lok Sabha can grant funds in advance for estimated expenditures for part of the financial year, pending the completion of the standard procedure for voting and passing grants.
Key Points:
- Financial Flexibility: Provides mechanisms to address unforeseen or additional financial needs during the financial year.
- Legislative Oversight: Ensures that all additional expenditures are subject to parliamentary approval and scrutiny.
- Efficient Financial Management: Facilitates timely funding for services and projects that require immediate attention, maintaining government operations without interruption.
Important Cases and Commissions Related to Article 115
Cases:
- S.R. Bommai vs. Union of India (1994): Though primarily about state government dissolution, it emphasized the importance of legislative approval for expenditures, reinforcing principles applicable to supplementary and excess grants.
- V.N. Shukla vs. Union of India (1968): Discussed the procedural aspects of financial legislation and the need for legislative oversight on government spending.
Commissions:
- Sarkaria Commission: Highlighted the need for clear procedures and legislative control over supplementary, additional, and excess grants in the context of Centre-State financial relations.
- National Commission to Review the Working of the Constitution (NCRWC) (2002): Recommended reforms to ensure transparency and accountability in the management of public finances, including supplementary and excess grants.
Previous Year Prelims Questions Related to Article 115
- (UPSC Prelims 2017) Supplementary and additional grants are presented to the Parliament:
- A. When there is a need for additional expenditure upon some new service not contemplated in the annual financial statement
- B. When the amount authorized for a particular service is found to be insufficient
- C. Both A and B
- D. Neither A nor B Correct Answer: C. Both A and B
- (UPSC Prelims 2019) The provision for excess grants under Article 115 ensures:
- A. Legislative approval for any excess expenditure over the authorized amount
- B. The President’s discretion in financial matters
- C. Exemption from parliamentary scrutiny
- D. Automatic approval of excess expenditure Correct Answer: A. Legislative approval for any excess expenditure over the authorized amount
Previous Year Mains Questions Related to Article 115
- Mains 2016: “Discuss the significance of supplementary, additional, and excess grants in the financial administration of India as outlined in Article 115. How do these provisions ensure financial accountability?”
- Mains 2019: “Analyze the role of the Lok Sabha in approving supplementary, additional, and excess grants. How does Article 115 facilitate effective financial management and legislative oversight?”
Additional Insights:
- Responsive Financial Planning: Article 115 ensures that the government can respond to unforeseen financial needs while maintaining parliamentary control over public expenditure.
- Legislative Control: By requiring legislative approval for supplementary, additional, and excess grants, Article 115 upholds the principle of legislative control over public finances.
- Transparency and Accountability: The procedures for presenting and approving these grants promote transparency and accountability in government spending.
Understanding Article 115 is crucial for UPSC aspirants as it outlines the procedures for managing supplementary, additional, and excess grants, ensuring legislative control and effective financial management. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions that govern financial administration within India’s parliamentary system.