Lok Sabha passes Appropriation Bill

News:The Lok Sabha has passed the Appropriation Bill 2020-21.


About 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.
  • The government usually introduces the Appropriation Bill in the Lok Sabha after discussions on Budget proposals and Voting on Demand for Grants.
  • The defeat of an Appropriation Bill would necessitate resignation of a government or a general election.However, this has never happened in India till date.

Additional information:

About Money Bill:

  • A money bill is defined under Article 110 of the Indian Constitution.
  • A Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government,expenditure from or receipt to the Consolidated Fund of India.
  • Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.
  • The Speaker certifies a Bill as a Money Bill and the Speaker’s decision is final.
  • The Money Bill is introduced in Lok Sabha on the recommendation of the President.It must be passed in Lok Sabha by a simple majority of all members present and voting.
  • Following this, it is sent to the Rajya Sabha for recommendations, which Lok Sabha may reject if it chooses to.If such recommendations are not given within 14 days,it will be deemed to be passed by Parliament.

About Consolidated Fund of India:

  • Consolidated fund of India has been constituted under Article 266 (1) of the Constitution of India.
  • The fund consists of revenues which are received by the government through taxes and expenses incurred in the form of borrowings and loans. 
  • No money out of this fund can be appropriated or drawn except in accordance with a parliamentary law.