Appropriation Bill

Why in News?

• The Union Finance Minister has recently moved the Appropriation (No.5) Bill, 2022, and Appropriation (No.4) Bill, 2022, in the Rajya Sabha

Highlights

• The bill authorized payment and appropriation of certain further sums from and out of the Consolidated Fund of India for the services of the financial year 2022-2023 for consideration and return.
• The Appropriation Bill gives power to the government to withdraw funds from the Consolidated Fund of India for meeting the expenditure during the financial year.
• As per Article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament.
• The amount withdrawn is used to meet the current expenditure during the financial year.
• The Appropriation Bill is introduced in the Lok Sabha after discussions on Budget proposals and Voting on Demand for Grants.
• The defeat of an Appropriation Bill in a parliamentary vote would lead to the resignation of a government or a general election.
• Once it is passed by the Lok Sabha it is sent to the Rajya Sabha.
• 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 Rajya Sabha.
• After the bill receives assent from the president it becomes an Appropriation act.
• The unique feature of the Appropriation Bill is its automatic repeal clause, whereby the Act gets repealed by itself after it meets its statutory purpose.
• The government cannot withdraw money from the Consolidated Fund of India till the enactment of the appropriation bill. However, this takes time and the government needs money to carry on its normal activities. To meet the immediate expenses the Constitution has authorised the Lok Sabha to make any grant in advance for a part of the financial year. This provision is known as the ‘Vote on Account’.
• A vote on account Is defined in Article 116 of the Indian Constitution.
• During an election year the Government either opts for ‘interim Budget’ or for ‘Vote on Account’ as after the election the Ruling Government may change and so the policies.