The Constitution states that ‘no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law’.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:
- The grants were voted by the Lok Sabha.
- 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.