Union Budget 2019: Appropriation Bill empowers govt to withdraw funds from Consolidated Fund of India to meet expenditure

Since 2016, Appropriation Bills in India include an automatic repeal clause as a result of which the Act is repealed after its purpose is met.

FP Research June 25, 2019 16:02:20 IST
Union Budget 2019: Appropriation Bill empowers govt to withdraw funds from Consolidated Fund of India to meet expenditure
  • Although Appropriation Acts are not included in any official list of Central laws, they technically remain on the books

  • Appropriation Bill, after it is passed by Lok Sabha, is sent to the Rajya Sabha

  • Rajya Sabha has the power to recommend amendments in the Finance Bill

Appropriation Bill is to empower the government to withdraw funds from the Consolidated Fund of India for meeting the expenditure during the financial year. The Consolidated Fund of India, which was created under Article 266 of the Indian Constitution, includes the revenues received by the government and expenses made by it.

Union Budget 2019 Appropriation Bill empowers govt to withdraw funds from Consolidated Fund of India to meet expenditure

File image of Parliament. PTI

Although Appropriation Acts are not included in any official list of central laws, they technically remain on the books. Since 2016, Appropriation Bills in India include an automatic repeal clause as a result of which the Act is repealed after its purpose is met. Appropriation Acts passed prior to 2016 were repealed by the enactment of The Appropriation Acts (Repeal) Act, 2015 in April 2016.

According to Article 114 of the Constitution, no amount can be withdrawn from the consolidated fund of India without the authorisation from Parliament or legislatures of the states. Due to this, the Parliament, as well as the state Assemblies need to pass appropriation bills as a part of the Budget exercise to be able to withdraw money from the consolidated fund of Union or state to spend it on various public expenditure programmes and to run day-to-day affairs of government.

Appropriation Bill can be defined as a kind of Money Bill passed annually (or at various times of the year) providing for the withdrawal or appropriation from and out of the Consolidated Fund of India, of moneys, voted by Lok Sabha and moneys charged on the Consolidated Fund for the services of a financial year or a part of a financial year.

Appropriation Bill, after it is passed by Lok Sabha is sent to the Rajya Sabha as Appropriation Bill and is certified by the Speaker as a Money Bill.  Rajya Sabha has the power to recommend amendments in the Finance Bill. However, it is for Lok Sabha to accept or reject the recommendations.

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