The Appropriation Bill, 2021

What is Appropriation Bill:

The Appropriation Bill can be classified as a “Money Bill” like Finance Bill. An Appropriation Bill is a bill that allows or authorizes the government to withdraw funds from the Consolidated Fund of India to meet the expenses incurred in a financial year. The Union Budget contains plans on spending the money on social programs for the upliftment of the society. The government needs money to spend on these programmes and the government takes the same from the Consolidated Fund of India.   

The Appropriation Bill allows the Government to withdraw funds from the “Consolidated Fund Of India” for meeting expenditure during Financial Year. Article 114 of The Indian Constitution states that the government can withdraw money from the Consolidated Fund only after receiving approval from the Parliament. The amount withdrawn is used to meet the current expenditure during the Financial Year.  

Finance Bill:

A Finance Bill is also a Money Bill. Article 110 of The Constitution of India deals with the concept of the Money Bill. Finance Bill contains the details of the financial proposals made by the government, budgets for the upcoming financial year. Finance Bill generally has changed tax rates and levies. It is introduced once a year during the budget presentation. The Finance Minister proposes changes in tax or some income tax rules during the budget speech, then that proposal will be introduced in the Parliament as Finance Bill and have to pass by both the houses.   

How Appropriation Bill can be passed:

The Appropriation Bill is first introduced in the Lok Sabha after a discussion on the budget proposal and voting on demand for grants. Once it is passed by the “Lok Sabha”, it is then presented in “Rajya Sabha”.

Rajya Sabha has the power to recommend any amendments in the bill so presented. It is the choice of the Lok Sabha either to accept or reject the recommendations or amendments so made by the Rajya Sabha. Once the bill receives assent from the president it becomes an “Appropriation Act.”

Unique Feature of the Bill:

The unique feature of The Appropriation Bill is the “Automatic Repeal Clause”. Once the statutory purpose of the Act is achieved, then the Act gets repealed automatically. The Government cannot withdraw money from Consolidated Fund without the enactment of the Appropriation Bill. However it is a long process that takes time therefore if the government needs money to carry out its operation, The Constitution of India has authorise the Lok Sabha to make any grant in advance. This provision is known as “Vote on Account”. Vote on Account: As per Article 116, of The Indian Constitution grants in advance can be made from Consolidated Fund to Central Government to meet its expenditure.

Appropriation Bill and Finance Bill difference:

The basic difference between these two Money Bill is that “Appropriation Bill” deals with the detail about the expenses part of the budget, whereas “Finance Bill” deals with the income part of the budget.   

The major difference between these two is that the lower and upper houses of Parliament can seek amendments in the Finance Bill, but in the case of the Appropriation Bill, no amendment can be moved or passed for it. A common similarity between these two is that both Appropriation Bill and Finance Bills can be classified as Money Bill.   

Conclusion:

The passing of a budget in Parliament involves many stages. The first stage is the presentation of the Budget, then the general discussion is made on it. After general discussion scrutiny of the budget is done by Departmental Committees.

Consolidated Fund of India is constituted under Article 266 (1) of The Indian Constitution. Consolidated Fund of India includes all revenues received by the Centre and all loans raised by the centre by the issue of public notification, Treasury bills including internal and external debt. All the government expenditures are borne from this Consolidated Fund, and no other amount can be withdrawn from the fund without permission from Parliament. Therefore The Appropriation Bill allows the government to withdraw funds from the Consolidated Fund of India to meet its expenses during the financial year.

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