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Q39 (CAPF/2017) Economy › Government Finance & Budget › Union Budget process Answer Verified

Which of the following pair(s) is/are correctly matched ? 1. Rule of lapse : Part of grant that can be earned over to next year 2. Supplementary : An advance grant to gront meet expenditures 3. Vote on : Additional funds account granted in the course of financial year Select the correct answer using the code given below :

Result
Your answer: —  Â·  Correct: D
Explanation

None of the provided pairs are correctly matched. The 'Rule of Lapse' is based on the principle of annuity, where any unspent grant at the end of the financial year expires and returns to the Consolidated Fund of India, rather than being carried over [4]. A 'Supplementary Grant' is granted when the amount authorized for a particular service for the current financial year is found to be insufficient, not as an advance grant [2]. A 'Vote on Account' is an advance grant made by the Parliament to allow the government to meet its expenditures for a part of the financial year before the passage of the Appropriation Bill, whereas the description provided in the question refers to an 'Additional Grant' [2]. Since all three definitions are mismatched with their respective terms, the correct option is 4.

Sources

  1. [3] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > III Financial Powers and Functions > p. 258
  2. [4] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > III Financial Powers and Functions > p. 258
  3. [1] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Other Grants > p. 255
  4. [2] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Other Grants > p. 255
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