Polity📖 3 min read

Parliament Passes Appropriation Bill for Supplementary Demands

The Indian Parliament recently passed a crucial Appropriation Bill, allowing the government to spend additional funds for various services.

Source: GNews Parliament
Summary of News

The Parliament of India has passed an Appropriation Bill, which authorises the government to draw money from the Consolidated Fund of India. This particular Bill was passed to meet certain supplementary demands for grants. Supplementary demands arise when the amount authorised by Parliament through the annual budget (Union Budget) is found to be insufficient for the current financial year. The government needs parliamentary approval to spend any money from the Consolidated Fund of India. The Appropriation Bill ensures that the executive cannot spend money without legislative sanction. This process is a key part of India's financial accountability system, ensuring that all government expenditure is approved by the elected representatives in Parliament. The Bill's passage allows various ministries and departments to continue their operations and implement schemes that require additional funding beyond the initial budget allocation.

Why It Matters

This news is important for competitive exams as it highlights a fundamental aspect of India's parliamentary financial control. Aspirants should understand the process of government spending, the role of the Consolidated Fund of India, and the significance of Appropriation Bills. This topic is directly relevant to UPSC GS Paper II (Indian Polity) and SSC General Awareness sections, focusing on the legislative control over public finance.

Key Points for Exam
  • The Parliament passed an Appropriation Bill to authorise additional government spending.
  • The Bill allows withdrawal of funds from the Consolidated Fund of India.
  • It addresses 'supplementary demands for grants' for the current financial year.
  • Article 114 of the Indian Constitution deals with Appropriation Bills.
  • No money can be withdrawn from the Consolidated Fund without parliamentary approval.
  • The Bill ensures legislative control over executive expenditure.
Important Keywords Explained
Appropriation Billact

An Appropriation Bill is a money bill that authorises the government to withdraw funds from the Consolidated Fund of India to meet the expenditure charged on the fund and the grants made by the Lok Sabha. It is introduced after the demands for grants are voted by the Lok Sabha. Its passage is essential for the government to legally spend money.

Consolidated Fund of Indiaconcept

This is the most important of all government accounts. All revenues received by the government, money borrowed, and receipts from loans given by the government flow into this fund. All legal government expenditures are made from this fund. Parliament's approval is mandatory for withdrawing money from it.

Supplementary Demands for Grantsconcept

These are presented to Parliament when the amount authorised by the Parliament through the annual budget for a particular service for the current financial year is found to be insufficient. They seek additional funds for specific purposes beyond the original budget allocation.

Additional Facts & Context
1Article 266(1) of the Indian Constitution establishes the Consolidated Fund of India.
2The Lok Sabha has exclusive power to vote on demands for grants.
3An Appropriation Bill cannot be amended by the Rajya Sabha.
4The Finance Bill is also passed along with the Appropriation Bill to give effect to the financial proposals of the government.
Examiner's Tip

UPSC often asks about the types of funds (Consolidated, Public Account, Contingency), the process of passing Money Bills, and the constitutional articles related to financial procedures. SSC exams frequently test basic definitions of these terms.

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Memory Trick

Remember 'Appropriation' as 'Approval for Spending'. The Bill 'appropriates' (sets aside) money for specific government uses.

Frequently Asked Questions

What is the primary purpose of an Appropriation Bill in India?

The primary purpose of an Appropriation Bill is to legally authorise the government to withdraw money from the Consolidated Fund of India. This withdrawal is necessary to meet the expenses approved by Parliament through the demands for grants and other charged expenditures, ensuring financial accountability.

How does the Appropriation Bill relate to the Union Budget?

The Appropriation Bill is a direct outcome of the Union Budget process. After the Lok Sabha votes on the demands for grants presented in the budget, an Appropriation Bill is introduced. Its passage converts the budget's expenditure proposals into legal authority for the government to spend.

Can the Rajya Sabha amend an Appropriation Bill?

No, the Rajya Sabha cannot amend an Appropriation Bill. It can only recommend amendments, which the Lok Sabha may or may not accept. The Lok Sabha has the ultimate authority over Money Bills, including Appropriation Bills, reflecting its control over government finances.

Connected Concepts / Topics
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