The Consolidated Fund of India may be drained of funds during the fiscal year by the government under the terms of the Appropriation Bill. The government can only withdraw funds from the Consolidated Fund with Parliament’s approval, as stated in Article 114 of the Constitution. The money taken out is utilized to cover ongoing expenses throughout the fiscal year.
Appropriation Bill Meaning
A bill that authorises the government to take money out of the Consolidated Fund of India for use during the fiscal year is known as an appropriation bill. Appropriation Acts theoretically stay in effect even though they are not listed on any official list of central legislation. It is a money bill that permits the Indian government to take money out of the Consolidated Fund of India in order to pay for expenses within a fiscal year.
Also Read: Demands for Grants
Appropriation Bill Procedure Followed
After debates over budget ideas and votes on grant requests, the appropriations bill is presented to the Lok Sabha. In the event that an appropriations measure was defeated in a vote in parliament, the government would either resign or call a general election.
It is sent to the Rajya Sabha after being approved by the Lok Sabha. Any modifications to this Bill may be recommended by Rajya Sabha. The Lok Sabha, however, has the authority to approve or reject the Rajya Sabha’s proposals.
The law becomes an appropriation act if the president gives his consent to it. The automatic repeal clause in the appropriations bill, which ensures that the Act is automatically repealed after it serves its intended purpose, makes it special.
The Consolidated Fund of India cannot be accessed by the government until the appropriation law has been passed. The government needs money to continue its regular operations, and this takes time. The Lok Sabha is permitted by the Constitution to issue any award in advance for a portion of the fiscal year in order to cover immediate expenses. The ‘Vote on Account’ is the name of this clause.
The Indian Constitution’s Article 116 defines a vote on account. In an election year, the government chooses between an interim budget and a vote on account since the policies may alter if the incumbent government wins the election.
Appropriation Bill Amendment
No change to an appropriation bill may be made that would have the effect of changing the amount or destination of a grant that has already been made or the amount of any expenditure charged to the Consolidated Fund of India, and the Lok Sabha Speaker’s determination of whether such a change is admissible is final.
Appropriation Bill and Finance Bill Difference
An appropriation bill defines the amount and reason for taking money whereas a finance bill contains measures on paying government expenses. Money legislation includes both appropriation and finance measures, both of which can be passed without the Rajya Sabha’s explicit consent. Only after discussion do they return the bills to the Rajya Sabha.
Appropriation Bill UPSC
A proposed law that authorizes the use of public funds is called an appropriation. It is sometimes referred to as a spending measure or a supply bill. It is a measure that allots funds for particular expenses. In several democracies, the legislature must provide its consent before the government can spend money. Students can read all the details related to UPSC by visiting the official website of StudyIQ UPSC Online Coaching.