BharatNotes What is Appropriation Bill?
The Appropriation Bill is a Money Bill that gives legal authority to the Union government to draw money out of the Consolidated Fund of India (CFI). Article 114 of the Constitution requires that, as soon as the Lok Sabha has made grants under Article 113, a Bill be introduced to appropriate from the CFI all moneys needed to meet (a) the grants so made and (b) the expenditure charged on the Consolidated Fund — but not exceeding the amounts shown in the Annual Financial Statement laid before Parliament. Under Article 114(3), no money can be withdrawn from the CFI except under an appropriation made by such law, subject to Articles 115 and 116.
Key Features and Procedure
- Introduced only in the Lok Sabha after the voting on demands for grants, on the President's recommendation, as it is a Money Bill (Article 110).
- No effective amendments: Article 114(2) bars any amendment in either House that would vary the amount or alter the destination of a grant, or vary the charged expenditure; the presiding officer's decision on admissibility is final.
- Rajya Sabha's role is limited: it can only discuss and make recommendations, and must return the Bill within 14 days; the Lok Sabha may accept or reject those recommendations.
- Charged expenditure (e.g., salaries of constitutional functionaries, debt charges) is included in the Bill but is not submitted to the vote of the Lok Sabha — it may only be discussed.
| Basis | Appropriation Bill | Finance Bill |
|---|---|---|
| Purpose | Authorises withdrawal from the CFI (expenditure side) | Gives effect to tax proposals (receipts side) |
| Constitutional basis | Article 114 | Article 110 read with Article 117 |
| Amendments | None permissible that vary amount/destination of grants | Amendments (e.g., to tax rates) can be moved/passed |
Related Constitutional Mechanisms
Article 115 enables supplementary, additional and excess grants when authorised amounts prove insufficient or a new service arises; each is followed by its own appropriation legislation. Article 116 provides for the vote on account (advance grant pending full budget passage), vote of credit and exceptional grants — which is why a financial year often sees more than one Appropriation Act.
Current Status (2026)
For the Union Budget 2026-27 — which projects total expenditure of about Rs 53.47 lakh crore, 7.7% above the revised estimate for 2025-26, with capital expenditure of about Rs 12.2 lakh crore (PRS Budget 2026-27 Analysis) — the Lok Sabha passed the relevant Appropriation Bill on 18 March 2026 after the guillotine was applied to outstanding demands for grants, and the Finance Bill, 2026 on 25 March 2026 (as reported in March 2026).
UPSC Angle
Prelims regularly tests the Appropriation Bill–Finance Bill distinction, the Rajya Sabha's restricted powers, the 14-day rule, and the bar on amendments. For Mains, it illustrates parliamentary financial accountability — and its erosion when large chunks of demands are guillotined without discussion. Remember the sequence: Budget presentation → general discussion → scrutiny by departmental standing committees → voting on demands for grants → Appropriation Bill → Finance Bill.
