Tags : GS Prelims Paper 1 GS Mains Paper 3 Prelims Facts Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment
The Constitution states that ‘no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law’
  • An Appropriation Bill is a money bill that allows the government to withdraw funds from the Consolidated Fund of India to meet its expenses during a financial year.
  • Accordingly, an appropriation bill is introduced to provide for the appropriation, out of the Consolidated Fund of India, all money required to meet:
  1. The grants were voted by the Lok Sabha.
  2. The expenditure charged on the Consolidated Fund of India.
  • The Appropriation Bill becomes the Appropriation Act after it is assented to by the President. 
  • This act authorizes (or legalizes) the payments from the Consolidated Fund of India.
  • As per article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament.