In context with the Budgetary procedures in India, what is / are the differences between “Supplementary” and “Excess Demands” for Grants:
1. Supplementary Demands for Grants are passed before the end of financial year, “Excess Demands” for Grants are passed at beginning of financial year
2. Supplementary Demands for Grants need scrutiny of Comptroller and Auditor General, “Excess Demands” for Grants don’t need such scrutiny
Choose the correct option:

Answer: [D] Neither 1 nor 2 is correct

If the amount authorized to be expended for a particular service for the current financial year is found to be insufficient for the purpose 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 Budget for that year the President causes to be laid before both the Houses of Parliament another statement showing the estimated amount of that expenditure. If any money has been spent on any service during a financial year in excess of the amount granted or the service for that year, the President causes to be presented to Lok Sabha a demand for such excess. All cases involving such excesses are brought to the notice of Parliament by the Comptroller and Auditor General through his report on the Appropriation Accounts. The excesses are then examined by the Public Accounts Committee which makes recommendations regarding their regularisation in its report to the House. The Supplementary Demands for Grants are presented to and passed by the House before the end of the financial year while the demands for excess grants are made after the expenditure has actually been incurred and after the financial year to which it relates, has expired.

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