Vizcards for Appropriation Bill
What is Appropriation Bill?
- Appropriation Bill is a money bill that allows the government to withdraw funds from the Consolidated Fund of India to meet its expenses during the course of a financial year.
- As per article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament.
- To put it simply, the Finance Bill contains provisions on financing the expenditure of the government, and Appropriation Bill specifies the quantum and purpose for withdrawing money.
Procedure for Appropriation Bill
- The government introduces the Appropriation Bill in the lower house of Parliament after discussions on Budget proposals and Voting on Demand for Grants.
- The Appropriation Bill is first passed by the Lok Sabha and then sent to the Rajya Sabha.
- The Rajya Sabha has the power to recommend any amendments in this Bill. However, it is the prerogative of the Lok Sabha to either accept or reject the recommendations made by the upper house of Parliament.
- The unique feature of the Appropriation Bill is its automatic repeal clause, whereby the Act gets repealed by itself after it meets its statutory purpose.
Defeat of Appropriation Bill
- The defeat of an Appropriation Bill (and also the Finance Bill) in a parliamentary vote would necessitate the resignation of a government or a general election.
- This has never happened in India to date, though.