Passing Of Appropriation Bill


The Constitution states that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made   by law. Accordingly, an appropriation  bill is introduced to provide for the   appropriation, out of the Consolidated  Fund of India, all money required to   meet:  
 
  • The grants voted by the Lok Sabha.
  • The expenditure charged on the Consolidated Fund of India.
  • No such amendment can be proposed to the appropriation bill in either house of the Parliament that will have the effect  of varying the amount or altering the  destination of any grant voted, or of   varying the amount of any expenditure   charged on the Consolidated Fund of   India.  
  • The Appropriation Bill becomes the Appropriation Act after it is assented to by the President. This act authorises   (or legalises) the payments from the  Consolidated Fund of India. This means   that the government cannot withdraw   money from the Consolidated Fund of India   till the enactment of the appropriation bill.UPSC Prelims 2024 dynamic test series
  • This takes time and usually goes on till the end of April. But the government needs money to carry on its normal activities after   31 March (the end of the financial year).  To overcome this functional difficulty, the   Constitution has authorised the Lok Sabha   to make any grant in advance in respect   to the estimated expenditure for a part of   the financial year, pending the completion   of the voting of the demands for grants   and the enactment of the appropriation  bill. This provision is known as the ‘vote   on account’. It is passed (or granted) after   the general discussion on budget is over. It   is generally granted for two months for an  amount equivalent to one sixth of the total   estimation.  

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