VIII

 .CHAPTER VIII*

EXECUTION OF THE BUDGET—III

(Control of Appropriation)

81. The previous chapter dealt mainly with the control of expenditure. The chapter is devoted to the control of expenditure. This chapter is devoted to the control of appropriation. Both control of expenditure and control of appropriation ultimately have the same objective, viz., that of ensuring that there is no unauthorised excess over appropriation or un surrendered saving at the close of the financial year, and both have also complementary roles to play.

82. Control over appropriation is the special responsibility of the Finance Department, and is exercised in three different ways, according as the occasion demands:—

  (i) Transfer of appropriation from one unit to another (reappropriation).

  (ii) Obtaining additional appropriation (supplementary grants).

(iii) Withdrawal of appropriation found to be in excess of requirements (resumption).

 

🆀Control over appropriation is the special responsibility of the 

(A) Head of Office

(B) Finance Department 

(C) Head of Department. 

(D) Accountant General

Correct Answer:-Option:(B)

🆀The control over Appropriation is exercised by :

(A) Reappropriation, Supplementary grant and Resumption 

(B) Proper reconciliation 

(C) Proper distribution of funds 

(D) Appropriation control system

Correct Answer:-Option:(A) 

REAPPROPRIATION

83. Definition.—Reappropriation, as defined in Chapter 11, is the transfer of funds from one unit of appropriation to another. With effect from 1974-75, the detailed heads of account, wherever they occur in the Budget Estimates, are treated as distinct units of appropriation. As such, transfer of funds from one such detailed head to another is also to be treated as reappropriation, and not redistribution.

 

🆀 Transfer of funds from one unit of appropriation to another unit is

 (A) Transfer

(B) Re-appropriation

(C) Redistribution

(D) Adjustment 

Correct Answer:-Option:(B) 

🆀 Re-appropriation is permissible between :

(A) Charged and Voted

(B) Grants 

(C) Detailed heads

(D) Revenue and Capital 

Correct Answer:-Option:(C)

84. General restrictions.—(1) The power to reappropriate between minor heads within a grant is exclusively that of the Finance Department, and its reserve power to refuse reappropriation is a check on overspending, and it should encourage the departments to be watchful about potential excesses. The power to reappropriate between heads subordinate to a minor head has, however, been delegated to the Administrative Department of the Secretariat and the Chief Controlling Officers mentioned in column 4 of Appendix 9, and, to a limited extent, to the subordinate officers of the Public Works Department and the Public Health Engineering Department (Superintending Engineers and Executive Engineers). This is subject to the following conditions, besides the further restrictions mentioned in the succeeding sub¬paragraphs and any special restriction which may be imposed in individual cases:—

 

🆀 The power to re-appropriate between minor heads within a grantis exclusively that of the 

(A) Administrative Department 

(B) Finance Department 

(C) Accountant General 

(D) Law Department

Correct Answer:-Option:(B) 

(i)  The  expenditure  should  be  under  the  general  control  of  the  Administrative

Department  or  the  general  or  direct  control  of  the  officer  sanctioning  the

reappropriation. 

(ii) The reappropriation should not involve the undertaking of a recurring liability, ie., a liability which extends beyond the current financial year.

 

🆀 Reappropriation should not involve transfer of funds provided for 

(A) the undertaking of a recurring liability

(B) one unit of plan scheme to another unit of plan scheme 

(C) one unit of non plan scheme to another unit of non plan scheme. 

(D) None of the above

Correct Answer:-Option:(A)

(iii) It should not be for the purpose of meeting expenditure on an object for which has been made in the Original or Supplementary Appropriation Act for the year, unless the authority competent to sanction reappropriations of this kind (Finance Department has already sanctioned a reappropriation for the same object.

(iv) The reappropriation should not involve transfer of funds provided for Plan schemes to meet non-plan expenditure or funds provided for Centrally Sponsored Plan Schemes. Such reappropriations will, when necessary, be sanctioned only by Government in the Finance Department.

Note.—1.Condition (ii) will not apply, if sanction for undertaking the liability has already been issued, with the concurrence of the Finance Department, and the reappropriation is in pursuance thereof.

2. Conditions (iii) will not apply, if the reappropriation is for meeting expenditure with the Department initially expected to incur during the previous year, but had to postpone to the current year. E.g., expenditure on a work in progress, which the department expected to complete and pay for during the preceding year, and for which, therefore, no provision was made in the Original Appropriation Act for the current year.

(2) No reappropriation is permissible between grants, or between the charged and voted sections or the revenue and capital sections of the same grant or for meeting expenditure on a ‘new service’ not contemplated in the budget estimates for the year. In the case of a sub or detailed head under which a reduction for probable savings had initially been made, savings to the extent necessary to offset the reduction should first be surrendered to the Finance Department, before any amount is reappropriated therefrom. Reappropriation is permissible only when there is a definite or reasonable chance of saving under the unit to be reduced, or it is meant to curtail expenditure under that unit to meet more urgent additional expenditure under another. Reappropriation, as a temporary device, even when there is no likelihood of saving under the unit to be reduced, in the hope of restoring the cut later from savings under other units, is objectionable and irregular.

Note:—1. The amount reappropriated should invariably be a multiple of Rs. 100.

2. If the excess or saving under a unit of appropriation does not exceed Rs. 100, it need not be regularised provided the grant as a whole (revenue portion of capital portion, as the case may be) is not exceeded thereby, and the unit if not one the provision for which had been specifically reduced by the Legislature.

(3) If the appropriation under a unit is reduced by reappropriation or resumption, the expenditure debitable to the unit should be restricted to the reduced appropriation. No authority subordinate to the one which sanctioned the reduction may increase the appropriation in exercise of its own powers of reappropriation, without the prior consent of the authority which reduced the appropriation. If the reduction was ordered by Government in the Finance Department its consent should be sought through Government in the Administrative Department concerned.

85. Special powers of officers of the Public Works and Public Health Engineering Department.— (1) Subject to the restrictions mentioned in the preceding paragraph and in relaxation of the general rule that only the Administrative Departments of the Secretariat and the Chief Controlling Officers listed in column 4 of Appendix 9 may reappropriate between sub-head within a minor head, Superintending Engineers and Executive Engineers of the Public Works Department and the Public Health Engineering Department may, in respect of funds placed at their disposal, sanction reappropriation between heads subordinate to a minor head, provided the amount reappropriated from/ to a single major does not exceed Rs. 25,000 in the case of Superintending Engineers and Rs. 10,000 in the case of Executive Engineers are empowered to reappropriate up to Rs.5,00,000* from one major work to another. Since, under the revised system of accounting introduced with effect from 1st April, 1974, each project is treated as a distinct minor head, the Chief Engineers, Superintending Engineers and Executive Engineers are no longer empowered to reappropriate from one project head to another.

(2) As an exception to condition (iii) mentioned in paragraph 84 (1), the Chief Engineers, Superintending Engineers and Executive Engineers of both departments may reappropriate funds for meeting expenditure on anew minor works, even if no provision for the purpose had been made in the budget, subject to the condition that the cost of such work does not exceed Rs. 2,500.

**Note.—Conditions (iii) mentioned in Para 84 (i) will not apply in the case of distribution/ reappropriation of funds by Chief Engineer to works which are included in the works appendix or specifically authorised to be taken up by competent authority costing less than Rs. 2 lakhs each out of the lump provision in the budget doe such works.

  (3) The powers of reappropriation delegated to the officers of the Public Works Department and the Public Health Engineering Departments are subject to the following further restrictions:—

  (i) The reappropriation should not involve transfer of funds for meeting expenditure on a work or project not yet administratively and technically sactioned by the competent authority.

  (ii) It should no resuit in appropriation of funds in excess of the amount of estimate, if technical sanction has already been accorded.

(iii) Reappropriation will not be effected from provision made for works for which tied assistance is available.

*(iv) Reappropriation will not be made between provisions for works pertaining to different Departments.

*(v) No funds will be provided by reappropriation or by redistribution for works which are not included in the “Works Appendix” or specifically authorised to be taken up by Government.

86. Form of application/sanction for reappropriation of funds.—(1) When a reappropriation is sanctioned, the authority which accords the sanction should draw up its proceedings in Form KBM 22, and forward one copy direct to the Accountant General. Besides, in the case of sanctions issued by the Chief Controlling Officers, two copies of the sanction should be forwarded to Government in the Administrative Department will retain one copy, and transmit the other to the Finance Department.

  (2) In the case of proposals which the Chief Controlling Officers are not competent to sanction, the application for reappropriation (also Form KBM 22) should be submitted, in duplicate, to Government in the Administrative Department. The Administrative Department will accord sanction, if competent to do so, or pass on the application to the Finance Department.

  (3) Separate statements should be prepared in respect of reappropriations affecting the “charged” and “voted” sections and revenue capital portions each grant. The reasons for the variations (excess/saving) should be explained fully and clearly on the reverse of each statement (Form KBM 22), or if, more convenient, in a sheet attached, indicating the quantum of excess/saving attributable to each reason. It should be remembered that the reasons furnished may ultimately have to be incorporated in the Appropriation Accounts, which are examined by the Public Accounts Committee of the Legislature. As such, the authority sanctioning the reappropriation should personally ensure that the reasons given are full, frank, forthright, and specific (i.e., nit in general terms).

SUPPLEMENTARY GRANT

87. Definition.—As defined in Chapter II, supplementary grant means the sum sanctioned by the Legislature for a particular service/function over and above the amount already authorised by it during the current year, or to meet expenditure on some ‘new service’ not contemplated in the Annual Financial Statement (budget) for the year, vide Article 205 of the Constitution.

 

🆀 Obtaining additional appropriation is: 

(A) Re-appropriation

(B) Re-allocation 

(C) Supplementary Grant 

(D) None of the above

Correct Answer:-Option:(C) 

88. When required.—A supplementary grant may become necessary in the following circumstances*:—

  (i) When the amount authorised by the Annual Appropriation Act to be expended for a particular service for the current financial year is found insufficient for the purpose.

  (ii) When a need arises during the current financial year for supplementary or additional expenditure upon some ‘new service’ not contemplated in the annual financial statement for that year.

 

🆀 Obtaining additional appropriation is: 

(A) Re-appropriation

(B) Re-allocation 

(C) Supplementary Grant 

(D) None of the above

Correct Answer:-Option:(C) 

 

🆀When appropriation amount is expended and there is insufficiency of fund for a particular source during the current year------------------------.may become necessary. 

(A) Vote on Account

(B) Revised Budget 

(C) Supplementary Grant 

(D) Additional Allotment

Correct Answer:-Option:(C)

89. Submission of proposals.—(1) The primary responsibility in respect of proposals for supplementary appropriations is that of the Chief Controlling Officer, who should, therefore, act with utmost caution in submitting such proposals. If, after the close of the financial year, it is found that the supplementary grant obtained was wholly unnecessary or far in excess of actual requirements, it may occasion on adverse comment in the Audit Report, which will be examined by the Public Accounts Committee. Before a supplementary demand is granted by the Legislature, the House will have to be satisfied that—

  (i) the expenditure could not be foreseen at the time the original estimates were framed, and

  (ii) that the expenditure cannot, in the public interest, be postponed to the next financial year.

The Chief Controlling Officer should, therefore while submitting proposals, explain to the satisfaction of Government, these two aspects of the question besides indicating why a supplementary appropriation is required. Government will not accept any such proposals, unless they are convinced that its rejection will result in serious inconvenience to the public service.

 

🆀 The primary responsibility in submission of proposal for supplementary appropriation rests with 

(A) Finance Department 

(B) Chief Controlling Officer 

(C) Finance Minister

(D) Legislature 

Correct Answer:-Option:(B)

(2) Proposals for supplementary appropriations should be submitted to Government in the Administrative Department, as

*See also Excess Grant. and when the need arises. The Administrative Department will examine the proposals, and pass them on to the Finance Department, with its recommendations. If a supplementary appropriation is required solely on account of insufficiency of the original appropriation placed at the disposal of the Controlling Officer, and there are resumed savings under the grant known to the Finance Department, the Finance Department will, if convinced of its necessity, provide the additional funds required by revoking the resumption order, to the extent necessary, and reappropriation of the funds so released. If no such saving is available, or if the supplementary appropriation is for financing a ‘new service’, the Finance Department will take steps to present a supplementary demand for grant to the Legislature, under Article 205 of the Constitution. The procedure to be followed in the Legislature in respect of such supplementary statement of expenditure will be same as that in the case of the Annual Financial Statement (Budget) presented earlier.

Note.—Copies of the Supplementary Appropriation Act should be forwarded to the Accountant General.

                                                             RESUMPTION

90. Definitions.—As defined in Chapter II, resumption is the act of a formal acceptance by the Finance Department of funds found to be in excess of requirements, and, hence, surrendered by the Controlling/Disbursing Officer.

 

🆀 The act of formal acceptance by the Finance Department of funds found to be in excess of requirements and hence surrendered by the Controlling Officer is called 

(A) Re-appropriation 

(B) Resumption 

(C) Appropriation

(D) Supplementary Appropriation 

Correct Answer:-Option:(B)

🆀 Which is the last date fixed for submission of proposals for reappropriation and surrender to the Finance Department ? 

(A) Ist February

(B) 15th February 

(C) 15th March

(D) 20th March

Correct Answer:-Option:(D)

91. Surrender of savings.—(1) It may be found, in the course of the year, that the expenditure under a unit is likely to be less than the appropriation therefore. This may be due to various reasons, such as over-budgeting, enforced economy, or postponement of expenditure. All anticipated savings should be surrendered to the Finance Department, through the Administrative Department, explaining the reason therefore, immediately they are foreseen, without waiting till the end of the year, unless they are required to meet excesses under other units, which are definitely foreseen at the time. The savings should not be held in reserve by the Sub-controlling or Disbursing Officer, no matter the justification. The provision to surrender funds found to be in excess of requirements is not meant to absolve the Estimating Officer from the charge of over-budgeting. If there is no valid reason for non-utilisation of the appropriation, the Estimating Officer will be held responsible for inflation of the estimate.

  (2) Appropriation which cannot be utilised to good effect should be surrendered. It is contrary to the interests of Government to spend money hastily or in an ill-conceived manner, merely because it is available, or just to avoid lapse of funds. The flow of expenditure should be so regulated throughout the year that there is no rush of expenditure, particularly during the closing months of the financial year.

  (3) Whenever Government specifically order a cut in expenditure, as a measure of economy, it is the duty of the Controlling Officer to curtail expenditure accordingly. He should also specifically mention, in the report of saving submitted to the cut, and the units of appropriation affected thereby.

92. Resumption of savings.—Reports of savings submitted by the Controlling Officers through the Administrative Departments will be scrutinised by the Finance Department, and action taken in the following order:—

  (i) In the case of grant in which a reduction for probable savings had been made, savings to be extent necessary to give effect to the reduction will first be resumed.

  (ii) The remaining savings will then be reappropriated, to the extent additional funds are required under other heads within the grant.

(iii) Finally, orders will be issued, resuming the savings still left.

Savings in the charged “charged” and “voted” sections and revenue and capital portions of each grant will be held separately. If, later on additional funds are found necessary for expenditure, the Finance Department may revoke the order of resumption, partly or fully, enabling of funds for the purpose.

SURRENDER/RERAPPROPRIATION—
LAST DATE FOR SUBMISSION OF PROPOSALS

93. (1) Reappropriation of funds and resumption of savings may be ordered by the competent authority till the last day of the financial year, but not after its expiry. The latest dates by which proposals for reappropriation requiring Government’s sanction and the surrender of savings should reach Government are—

  (i) Receipt of proposals in the Administrative Department from the chief Controlling Officers and local bodies 15th February

  (ii) Receipt in the Finance Department from the Administrative Department 25th February

  (2) The Chief Engineer, Irrigation, should submit to Government in the Finance Department, not later than the 25th of February every year, a statement showing the estimated capital outlay on irrigation schemes during the year. This is to enable Government to ensure optimum utilisation of funds earmarked for irrigation schemes.

  (3) Before submitting the last batch of proposals for reappropriation/supplementary, appropriation/surrender, the Chief Controlling Officers should carefully assess their final requirements for the year, on the basis of the actual expenditure during the first nine or ten months and the anticipated expenditure during the rest of the financial year, and also taking into accounts the adjustments likely to be made by the Accountant General, before the final closing of accounts of the year, towards discharge of outstanding liabilities.

 

🆀 What is a service called for which is not contemplated in the Budget?

(A) Extension of service 

(B)New form of service 

(C) New instrument of service 

(D) New service 

Correct Answer:-Option:(D)

NEW SERVICE

94. (1) Term explained.—The term ‘new service’, which appears in Articles 115(1) and 205(1) of the Constitution, has not been specifically defined therein. It means a service ‘not contemplated in the annual financial statement for the year’. But, a new item of expenditure need not necessarily constitute a ‘new service’. A ‘new service’ may be a new form of service or a new instrument of service. For example, if, in a State, a Land Board is newly created to implement the land reform measures, that, undoubtedly, is a new form of service. In every State there are hospitals. If it is decided a build a new hospital, this is not a new form of service, because hospitals already exist. It is, however, a new instrument of service.

 

 🆀  The expenditure which is not contemplated in the budget for the financial year for which supplementary statement of expenditure should be presented in the Legislature is called : 

(A) Supplementary Grant 

(B) Revised Estimate 

(C) New Service 

(D) Supplementary Appropriation

Correct Answer:-Option:(C) 

 🆀 A service not contemplated in the Annual Financial Statement for the year is known as

(A) New Service

(B) Standard Service 

(C) Extra Service

(D) None of the above

Correct Answer:-Option:(A)

 A new form of service involves the adoption of a new policy, the provision of a new facility, or the alteration in character of an existing facility, and is normally looked upon as a ‘new service’, if it has not been contemplated in the annual financial statement (budget). A new instrument of service is treated as a ‘new service’, only if the expenditure involved is relatively large. In other words, it should involve an important extension of a previous specific commitment or facility, entailing relatively large expenditure. Thus, starting a new school and employment of an additional peon may both constitute examples of new instruments of service; but only the former is treated as a ‘new service’. i.e., the cost of the new instrument of service should exceed certain specified limits, vide Appendix 13, if the service is to be treated as ‘new’.

  (2) How financed.—According to Article 205 of the Constitution, when a need arises during the current financial year for supplementary or additional expenditure upon same ‘new service’ not contemplated in the annual financial statement for that year, a supplementary statement showing the estimated amount of that expenditure has to be laid before the Legislature. No expenditure should be incurred on a ‘new service’, even if there are savings within the grant, before a supplementary grant is thus obtained. [If the expenditure can be met fully or partly from savings within the grant, a token sum (Rs. 100) or the balance actually required, as the case may be, need alone be shown in the supplementary statement of expenditure. When the supplementary demand is for a token sum, details of the new scheme, including its financial implication should be given as a foot-note.] If, however, the need is so urgent that expenditure on the ‘new service’ cannot be put off till a supplementary grant is obtained, interim provision may be found by obtaining an advance from the Contingency Fund, pending authorisation by the Legislature. The advance should be for the full amount required for expenditure during the interim period (not a token sum), even when the expenditure can be met fully or partly from savings within the grant, and if the amount of advance is later found insufficient, an additional advance should be obtained.

 

🆀If the need is so urgent that expenditure on the 'new service cannot be put off till a supplementary grant is obtained, interim provision may be found by obtaining an advance from: 

(A)The Contingency Fund 

(B) The Consolidated Fund 

(C) Public Account

(D) Capital Fund

Correct Answer:-Option:(A)

 🆀 If expenses had to be incurred on a new service not contemplated on the budget , what action has to be taken ? 

(A) Funds required may be met from permanent advance 

(B) The proposal may be deferred for the next year 

(C) A supplementary statement has to be placed before the Legislature 

(D) The proposal may be dropped

Correct Answer:-Option:(C)

  (3) Rulings on New Service.—Based on the recommendations of the Public Accounts Committee, Government have, from time to time, laid down certain criteria for deciding whether a new item of expenditure would constitute a ‘new service’. These are reproduced in Appendix 13. 

 

🆀  Government have laid down certain criteria to be adopted in the matter of treating any item of expenditure as "New Service" is determined based on the recommendation of:

 (A) Accountant General 

(B) Public Accounts Committee 

(C) Concerned Head of the Department 

(D) Finance Department 

Correct Answer:-Option: (B)

EXPENDITURE NOT PROVIDED FOR 
IN THE BUDGET BUT NOT ON A NEW SERVICE

95. (1) Subject to availability of funds, the Budget Estimates normally provide for all foreseeable items of expenditure likely to be incurred during a financial year. As such in normal circumstances, there in hardly any justification for proposing, during the course of the year, fresh expenditure not already provided for in the Budget Estimates. However, for special reasons, it may sometimes become urgent and unavoidable to incur fresh expenditure not contemplated in the budget, but not involving a ‘new service’. In such cases, the Controlling Officer should carefully examine whether the expenditure can be met by postponing or curtailing less urgent expenditure for which provision already exists. If such a course is found impracticable, action should be initiated to obtain a supplementary appropriation.

  (2) When a new item of expenditure not constituting a ‘new service’ can be met entirely by reappropriation of savings within the grant, the reappropriation should not be made in anticipation of Government’s sanction to the proposal. Nor should expenditure be incurred before the savings have actually been reappropriated. To avoid such a contingency, the application for sanction to incur the expenditure and that for reappropriation of funds should both be submitted together.

  (3) When an additional appropriation is required urgently in a case not involving a ‘new service’ and no savings are foreseen, the authority concerned should apply to Government in the Administrative Department for permission to incur the expenditure. The Administrative Department may, with the concurrence of the Finance Department, authorise the incurring of the expenditure, and inform the Accountant General, through the Finance Department, that provision will be made later, either by reappropriation, or, if this is found impracticable, by obtaining a supplementary grant. The grant as a whole should not be exceeded before the supplementary grant has been made by the Legislature. In such cases, it will be the responsibility of the Controlling Officer to later ensure that funds are in fact provided as originally proposed i.e., either by reappropriation or, if necessary, by obtaining a supplementary grant.

CONTINGENCY FUND

96. The Contingency Fund has been created under Article 267 (2) of the Constitution, and is in the nature of an imprest placed at the disposal of the Governor, to enable him to make advances for meeting unforeseen, but unavoidable expenditure, pending authorisation by the Legislature. It may sometimes become necessary, in the course of the year, to incur expenditure over and above the amount already authorised by the Legislature for a particular service or on a ‘new service’ not contemplated in the annual budget, even before obtaining the approval of Legislature for exceeding the budget grant/incurring ‘new’ expenditure. The Contingency Fund is meant to be drawn upon in such a contingency, if being illegal to incur expenditure from the Consolidated Fund in such circumstances. The existence of the Contingency Fund does not, in any way, undermine the authority of the of the Legislature, or diminish its control over public spending, as the expenditure met out of the Contingency Fund has to be subjected to scrutiny by the Legislature at the earliest opportunity, vide the Kerala Contingency Fund Act, 1957, and the rules made thereunder, reproduced in Appendix 14. The Fund is administered by the Finance Department.

 

🆀 Contingency Fund of the State is placed at the disposal of: 

(A) Chief Minister

(B) Governor

 (C) Finance Minister

(D) Revenue Minister

Correct Answer:-Option:(B)

🆀 The Contingency Fund of the State is established to enable the Governor :
(A)To make advances for avoiding supplementary grant
(B)To make advance for meeting unforeseen and unavoidable expenditure in the course of a year
(C) To meet the expenditure of a “New service” included in the budget
(D) To make advances for avoiding excess grant
Correct Answer:-Option:(C)

 🆀 The Contingency Fund has been created under which Article of the Constitution of India ?

(A) 267(2) 

(B)205(1) 

(C) 115(1)

(D) 204 

Correct Answer:-Option: (A) 

🆀 Who administers the Contingency Fund? 

(A) Chief Minister

(B) Finance Department 

(C) Director of Treasuries 

(D) Law Department 

Correct Answer:-Option:(B)

🆀 An amount placed at the disposal of the Governor to meet the unforeseen and unavoidable expenditure pending authorization of the Legislature. 

(A) Consolidated Fund 

(D) Public Account 

(C) Contingency Fund

(D) None of the above

Correct Answer:-Option:(C)

🆀 On behalf of the Governor who holds Contingency Fund : 

(A) Chief Secretary

(B) Director of Treasuries 

(C) Finance Secretary 

(D) Speaker

Correct Answer:-Option:(C) 

🆀What is the corpus of the Contingency Fund of the State of Kerala?:

(A) 70 crores 

(B) 50 crores 

(C) 200 Crores 

(D) 100 crores

Correct Answer:-Option:(D)

🆀 Kerala Contingency act was passed in the year 

        A:-1971 

        B:-1957 

        C:-1959 

        D:-1960 

        Correct Answer:- Option-B 

EXCESS GRANT

97. (1) It is always the responsibility of the department administering a grant to ensure that the actual expenditure does not exceed the amount placed at its disposal by the Legislature. If expenditure over and above this amount becomes unavoidable, it is open to the department to obtain a supplementary grant before the close of the financial year. As such, excess expenditure which comes to notice after the expiry of the financial year is always looked upon as an irregularity.

(2) According to article 205 of the Constitution, 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, i.e., if it is notices after the close of the financial year that the expenditure has, in fact, exceeded the grant as a whole, a demand for such excess has to be presented to the Legislature, and an ‘excess grant’ obtained. The procedure to be followed for obtaining an excess grant has been described in Appendix 15.

 

🆀 Excess Expenditure brought to the notice of the Legislature after expiry of the financial year authorised by obtaining: 

(A) Contingency Grant 

(B) Excess Grant 

(C) Excess Appropriation

(D) Lapsed Grant

Correct Answer:-Option:(B) 

🆀 According to which Article of the Constitution it is mandatory for a State Government to get excess over Grants /Appropriations regularised by the State Legislature ?

 (A) Article 305 

(B) Article 271 

(C) Article 205 

(D) Article 255

Correct Answer:-Option:(C)

🆀 What is the corpus of the Contingency Fund of the State of Kerala?:

(A) 70 crores 

(B) 50 crores 

(C) 200 Crores 

(D) 100 crores

Correct Answer:-Option:(D)

🆀 Excess Expenditure brought to the notice of the Legislature after expiry of the financial year authorised by obtaining: 

(A) Contingency Grant 

(B) Excess Grant 

(C) Excess Appropriation

(D) Lapsed Grant

Correct Answer:-Option:(B) 

🆀 According to which Article of the Constitution it is mandatory for a State Government to get excess over Grants /Appropriations regularised by the State Legislature ?

 (A) Article 305 

(B) Article 271 

(C) Article 205 

(D) Article 255

Correct Answer:-Option:(C)

TEXT BOOK INDEX -CHAPTER VIII		Paras
Appropriation—
	incurring expenditure in excess of	5(3), 64(3), 88, 89
	savings in	5(3), 64(3), 91, 92
Appropriation Accounts—
	reasons for excess/saving may be incorporated in	86(3)
Contingency Fund—
	purpose explained	96
Control of appropriation—
	objective same as that of control of expenditure	81
	special responsibility of Finance Department	82
	there different ways	82
Disbursing Officers—
	surrender of savings by	5(3), 91
Estimating Officer—
	Excess grant	11, 97, Appendix 15
Finance Department—
	control in appropriation special responsibility of	82
Reappropriation—
	term defined	11, 83
	general restrictions	84
	special powers of officers of the Public Works and Public Health Engineering Departments	85
	form of application/sanction	86
	last date for submission of proposals	93(1)
Resumption—
	term defined	11, 90
	process explained	92
Savings—
	surrender of	5(3), 91
Supplementary grant—
	term defined	11, 87
	when required	88
	submission of proposals	89
Surrender—
	instructions regarding	91
	last date for submission of proposals	93(1)