Rajya Sabha Clears Appropriation Bill for Rs 54,067 Cr Excess Expenditure
The Rajya Sabha recently passed a crucial bill to regularize government spending, addressing excess expenditures from the 2022-23 financial year.
Source: GNews ParliamentThe Rajya Sabha, India's upper house of Parliament, has cleared the Appropriation (No. 4) Bill, 2024. This bill seeks to authorize the appropriation of Rs 54,067 crore from the Consolidated Fund of India. This amount represents the excess expenditure incurred by various government ministries and departments during the financial year 2022-23. The Lok Sabha had already passed this bill earlier. The passage of such appropriation bills is a constitutional requirement to regularize any spending by the government that exceeds the amounts originally sanctioned by Parliament through the annual budget. This process ensures parliamentary oversight and accountability over public finances. The bill's clearance by the Rajya Sabha allows the government to formally account for the additional funds spent.
This news is important for competitive exams, especially for topics related to Indian Polity and Economy (UPSC GS Paper II, SSC General Awareness). It highlights the parliamentary process of financial control, specifically the role of Appropriation Bills and the Consolidated Fund of India. Aspirants should understand how government expenditure is authorized, the concept of excess grants, and the constitutional provisions governing public finance. This demonstrates the legislative branch's power over the executive's spending.
- Rajya Sabha cleared the Appropriation (No. 4) Bill, 2024.
- The bill authorizes Rs 54,067 crore for excess expenditure.
- The excess expenditure relates to the financial year 2022-23.
- The Lok Sabha had previously passed this Appropriation Bill.
- Funds are appropriated from the Consolidated Fund of India.
An Appropriation Bill is a money bill that allows the government to withdraw funds from the Consolidated Fund of India to meet its expenditure. It is introduced after the demands for grants are voted by the Lok Sabha. No money can be withdrawn from the Consolidated Fund of India without the enactment of an Appropriation Act.
This is the most important of all government accounts. All revenues received by the government, loans raised by it, and recoveries of loans granted by it form part of the Consolidated Fund. All legal government expenditures are met from this fund. Article 266(1) of the Constitution governs this fund.
An excess grant is demanded when the actual expenditure incurred by a ministry or department in a financial year exceeds the amount originally granted for that year. Parliament must approve these excess expenditures after the financial year ends, typically through an Appropriation Bill for excess grants.
UPSC and State PSC exams frequently ask about parliamentary financial procedures, types of funds (Consolidated, Public Account, Contingency), and the roles of bodies like CAG and PAC. SSC exams often test basic facts about Appropriation Bills and constitutional articles related to finance.
Remember 'APPROPRIATE' means to set aside money. An Appropriation Bill sets aside money from the 'CONSOLIDATED' fund for government 'EXPENDITURE'.
Frequently Asked Questions
What is the purpose of an Appropriation Bill in India?
An Appropriation Bill is essential for the Indian government to legally withdraw money from the Consolidated Fund of India. It ensures that all government spending is authorized by Parliament, maintaining financial accountability and control over public funds as per constitutional provisions.
Which constitutional article is related to the Consolidated Fund of India?
The Consolidated Fund of India is established under Article 266(1) of the Indian Constitution. This article specifies that all revenues received by the Government of India, all loans raised by the government, and all money received by it in repayment of loans shall form part of this fund.
Who audits the excess expenditure of the government?
The Comptroller and Auditor General (CAG) of India is responsible for auditing the accounts of the Union and State governments. The CAG's reports highlight any excess expenditures incurred by ministries and departments, which are then examined by the Public Accounts Committee of Parliament.