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Polity & Governance
Mahesh

21/12/22 22:07 PM IST

Appropriation Bill

In News
  • The central government moved the Appropriation (No 5) Bill, 2022, and the Appropriation (No 4) Bill, 2022, in the Rajya Sabha recently aimed to authorize payment and appropriation of certain further sums from and out of the Consolidated Fund of India for the services.
Appropriation Bill
  • It is a money bill that allows the government to withdraw funds from the Consolidated Fund of India to meet its expenses during a financial year.
  • As per Article 114(3) of the Constitution, no amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament.
  • The whole process beginning with the presentation of the Budget and ending with discussions and voting on the Demands for Grants requires a fairly long time.
  • The Lok Sabha is, therefore, empowered by the Constitution to make any grant in advance in respect of the estimated expenditure for a part of the financial year pending completion of procedure for the voting on the demands.
  • However, if during the course of the financial year, the funds so appropriated are found to be insufficient, the Constitution provides for seeking approval from the Parliament or State Legislature for supplementary grants.
Procedure
  • The Appropriation Bill is first passed by Lok Sabha and then sent to Rajya Sabha.
  • Rajya Sabha has the power to recommend any amendments to this Bill.
  • However, it is the prerogative of the Lok Sabha to either accept or reject these recommendations.
  • An Appropriation Bill is passed by the Parliament/state legislature and then it is presented to the President/Governor.
  • After the assent by the President/Governor to the bill, it becomes an Act.
Consolidated Fund of India
  • It is the most important of all government accounts.
  • This fund was constituted under Article 266 (1) of the Constitution of India. All revenues received by the government by way of direct taxes and indirect taxes, money borrowed and receipts from loans given by the government flow into the Consolidated Fund of India.
  • All government expenditure is made from this fund, except exceptional items which are met from the Contingency Fund or the Public Account. Importantly, no money can be withdrawn from this fund without the Parliament’s approval.
Source- The Hindu

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