News Highlight
The Appropriation Bill, passed by Lok Sabha on September 19, was cleared in the Upper House with a voice vote and without any discussion.
Key Takeaway
- Rajya Sabha on Wednesday returned the Appropriation (No.3) Bill 2020 and the Appropriation (No.4) Bill 2020.
- It authorises payment of certain sums from the Consolidated Fund of India for the current financial year.
- The Upper House approved the Bills with a voice vote, and no discussion after Lok Sabha passed them on September 19.
- The Appropriation (No. 4) Bill 2020 authorises the payment and appropriation of additional funds from the Consolidated Fund of India for services provided during the fiscal year 2020–2021.
- The Appropriation (No.3) Bill 2020 authorises the appropriation of funds from the Consolidated Fund of India to pay for certain services that were provided during the fiscal year that ended on March 31, 2017, more than the funds authorised for such services and for that year.
Appropriation Bill
- About
- It is a bill of money that enables the government to take money out of the Consolidated Fund of India to pay for expenses throughout a fiscal year.
- According to Article 114(3) of the Constitution, no money can be taken from the Consolidated Fund until Parliament passes a statute.
- To cover anticipated expenses for a portion of the fiscal year while the procedure for voting on the demands is still ongoing, the Lok Sabha is constitutionally authorised to provide any grants.
- Procedure
- The Lok Sabha must approve the appropriations bill before sending it to the Rajya Sabha.
- Rajya Sabha may recommend any modifications to this Bill.
- The Lok Sabha, however, has the authority to adopt or reject these proposals.
- An appropriations bill is delivered to the president or governor after being approved by the parliament or state legislature.
- The measure becomes an Act if the President or Governor gives consent.
Key features of the Appropriation Bill
- Firstly, the Appropriation Bill’s unique characteristic is its automatic repeal clause, which states that the Act will be abolished after it has served its legislative purpose.
- An appropriation bill cannot be amended in a way that would change the amount of any grant made, the destination of that grant, or the amount of any expenditure charged to the Consolidated Fund of India.
- The Speaker will decide whether or not such an amendment is allowed, and his or her decision is final.
- In addition, it is improper to change an appropriations bill to remove a House-approved demand.
- The process for an appropriation bill is similar to that for other money bills in other ways.
Difference between Finance Bill and Appropriation Bill
- Firstly, It defines the amount and reason for taking money.
- Whereas a finance bill contains measures for paying government expenses.
- Both appropriation and finance measures are under the money legislation, which can be passed without the Rajya Sabha’s express approval.
- In addition, only after discussion and bill return does the Rajya Sabha act on them.
The Stages of Budget in Parliament
- Presentation of Budget.
- General discussion.
- Scrutiny by Departmental Committees.
- Voting on Demands for Grants.
- Passing an Appropriation Bill.
- Passing of Finance Bill.
Pic Courtesy: The Hindu
Content Source: The Hindu