What is vote of credit?
Q. Vote of credit is- Published on 03 Oct 16a. Granted for meeting an unexpected demand upon the resources of India
b. Granted for a special purpose and forms no part of the current service of any financial year
c. Granted when money has been spent on any service during a financial year in excess of the amount granted for that service
d. It is for raising money in case of emergency through a loan from the RBI.
ANSWER: Granted for meeting an unexpected demand upon the resources of India
- Excess Grant - It is granted when money has been spent on any service during a financial year in excess of the amount granted for that service in the budget for that year. It is voted by the Lok Sabha after the financial year. Before the demands for excess grants are submitted to the Lok Sabha for voting, they must be approved by the Public Accounts Committee of Parliament.
- Vote of Credit - It is 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 cannot be stated with the details ordinarily given in a budget. Hence, it is like a blank cheque given to the Executive by the Lok Sabha.
- Exceptional Grant - It is granted for a special purpose and forms no part of the current service of any financial year.
