UPSC Prelims Practice Questions — RS clears Appropriation Bill for expenditure of ₹54,067 crore

Q1. With reference to how an Appropriation Bill is dealt with in Parliament as compared with an ordinary Bill, consider the following statements: 1. Unlike an ordinary Bill, an Appropriation Bill cannot be introduced in the Rajya Sabha. 2. The Rajya Sabha may amend an Appropriation Bill, but the Lok Sabha is free to reject any such amendment. 3. If the Rajya Sabha does not return an Appropriation Bill with its recommendations within fourteen days, it is deemed to have been passed by both Houses. Which of the statements given above is/are correct?

  1. Unlike an ordinary Bill, an Appropriation Bill cannot be introduced in the Rajya Sabha.
  2. The Rajya Sabha may amend an Appropriation Bill, but the Lok Sabha is free to reject any such amendment.
  3. If the Rajya Sabha does not return an Appropriation Bill with its recommendations within fourteen days, it is deemed to have been passed by both Houses.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. The Appropriation Accounts of the Union Government — which set out the sums actually spent against the grants authorised by Parliament, and which are subsequently audited — are compiled and submitted by which one of the following?

  • A. The Budget Division of the Department of Economic Affairs, Ministry of Finance
  • B. The Office of the Controller General of Accounts, Department of Expenditure, Ministry of Finance
  • C. The Office of the Comptroller and Auditor General of India, a constitutional authority
  • D. The Public Accounts Committee, a financial committee of Parliament with 22 members

Q3. Consider the following descriptions of devices by which Parliament sanctions expenditure other than through the regular annual Appropriation Act: 1. Supplementary Demand for Grant — sought when the amount authorised for a particular service for the current financial year is found to be insufficient, or when a need arises for expenditure on a new service not contemplated in the annual financial statement. 2. Excess Demand for Grant — sought in a subsequent financial year to regularise spending on a service that has already exceeded the amount granted for it. 3. Vote of Credit — granted to meet an unexpected demand upon the resources of India when, on account of the magnitude or indefinite character of the service, the demand cannot be stated with the details ordinarily given in an annual financial statement. 4. Vote on Account — a grant made after the close of a financial year to cover expenditure already incurred in excess of the sanctioned grant. Which of the above is/are correctly identified?

  1. Supplementary Demand for Grant — sought when the amount authorised for a particular service for the current financial year is found to be insufficient, or when a need arises for expenditure on a new service not contemplated in the annual financial statement.
  2. Excess Demand for Grant — sought in a subsequent financial year to regularise spending on a service that has already exceeded the amount granted for it.
  3. Vote of Credit — granted to meet an unexpected demand upon the resources of India when, on account of the magnitude or indefinite character of the service, the demand cannot be stated with the details ordinarily given in an annual financial statement.
  4. Vote on Account — a grant made after the close of a financial year to cover expenditure already incurred in excess of the sanctioned grant.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q4. Demands for Excess Grants are placed before Parliament for retrospective sanction only after the excess spending has been examined and reported upon by which one of the following?

  • A. The Estimates Committee, drawn entirely from members of the Lok Sabha
  • B. The Public Accounts Committee, drawn from members of both Houses
  • C. The Committee on Public Undertakings, which scrutinises state enterprises
  • D. The Standing Committee on Finance, which examines Demands for Grants

Q5. The Public Accounts Committee, first set up in India in 1921 and now constituted afresh every year, consists of how many members in all?

  • A. 15 members
  • B. 22 members
  • C. 30 members
  • D. 31 members

Q6. The Public Accounts Committee is constituted every year under which one of the following?

  • A. Article 118 of the Constitution, which lets each House regulate its procedure
  • B. Rule 308 of the Rules of Procedure and Conduct of Business in Lok Sabha
  • C. Section 13 of the Comptroller and Auditor General's (DPC) Act, 1971
  • D. Rule 331C of the Rules of Procedure and Conduct of Business in Lok Sabha

Q7. Among the audit reports submitted by the Comptroller and Auditor General of India in respect of the Union, which one is the principal vehicle for bringing spending in excess of parliamentary authorisation to the notice of Parliament?

  • A. The Audit Report on Finance Accounts, which alone certifies every receipt and disbursement of the year
  • B. The Audit Report on Appropriation Accounts, which sets actual expenditure against the grants voted
  • C. The Audit Report on Public Undertakings, which covers the entire commercial activity of the Union
  • D. The Compliance Audit Report, which is the sole and final basis for regularising all excess spending

Q8. With reference to the constitutional position of the Comptroller and Auditor General of India, consider the following statements: 1. Article 148 provides for the appointment of the Comptroller and Auditor General and the conditions of service of that office. 2. Article 149 deals with the duties and powers to be performed and exercised by the Comptroller and Auditor General. 3. Article 150 requires the Comptroller and Auditor General to submit the reports relating to the accounts of the Union to the President, who shall cause them to be laid before each House of Parliament. 4. The salary and the administrative expenses of the office of the Comptroller and Auditor General are voted by Parliament each year along with the Demands for Grants of the Ministry of Finance. Which of the statements given above is/are NOT correct?

  1. Article 148 provides for the appointment of the Comptroller and Auditor General and the conditions of service of that office.
  2. Article 149 deals with the duties and powers to be performed and exercised by the Comptroller and Auditor General.
  3. Article 150 requires the Comptroller and Auditor General to submit the reports relating to the accounts of the Union to the President, who shall cause them to be laid before each House of Parliament.
  4. The salary and the administrative expenses of the office of the Comptroller and Auditor General are voted by Parliament each year along with the Demands for Grants of the Ministry of Finance.
  • A. 1 and 2
  • B. 3 only
  • C. 3 and 4
  • D. 2 and 4

Q9. With reference to the Appropriation (No. 3) Bill, 2026 passed by Parliament, consider the following statements: 1. It regularises excess expenditure incurred in the financial year that ended on 31 March 2023. 2. Of the amount regularised, the larger share was capital expenditure of the Ministry of Railways arising from a court order, and the smaller share was repayment of debt. 3. Unlike a regular Appropriation Bill, which authorises withdrawals for a year yet to be spent, this Bill sought Parliament's sanction for money that had already been spent. Which of the statements given above is/are correct?

  1. It regularises excess expenditure incurred in the financial year that ended on 31 March 2023.
  2. Of the amount regularised, the larger share was capital expenditure of the Ministry of Railways arising from a court order, and the smaller share was repayment of debt.
  3. Unlike a regular Appropriation Bill, which authorises withdrawals for a year yet to be spent, this Bill sought Parliament's sanction for money that had already been spent.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. The excess expenditure of about ₹54,067 crore for 2022-23 regularised by the Appropriation (No. 3) Bill, 2026 arose under how many heads?

  • A. One — repayment of debt alone
  • B. Two — repayment of debt and a Railways capital demand
  • C. Three — repayment of debt, Railways and Defence demands
  • D. Four — spread over civil, railway, postal and defence demands