Appropriation Bill 2026: Meaning, Constitutional Provisions, Process and Significance

Source: News on Air

Context:

The Appropriation Bill 2026 has been passed by Parliament, with the Rajya Sabha returning it to the Lok Sabha after discussion. The Finance Minister defended the Budget as transparent and realistic, completing a crucial step in the Union Budget process.

What is an Appropriation Bill?

An Appropriation Bill is a financial legislation that authorises the government to withdraw funds from the Consolidated Fund of India (CFI) to meet its expenditure for a financial year.

Without the passage of this Bill, the government cannot legally spend any money, even if the Budget has already been presented.

Constitutional Provisions

Article 114

• Mandates that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law.

Article 115

• Deals with Supplementary, Additional, or Excess Grants, requiring additional appropriation.

Article 116

• Provides for Vote on Account, Vote of Credit, and Exceptional Grants.

Key Features of the Appropriation Bill

Authorisation of Expenditure

• Allows withdrawal of funds from the CFI for:
  • Government schemes
  • Administrative expenses

Includes Two Types of Expenditure

• Voted Expenditure: Approved by Lok Sabha
• Charged Expenditure: Not voted (e.g., salaries of President, judges, interest payments)

No Amendments Allowed

• Parliament cannot amend the Bill to:
  • Change amount
  • Alter destination of funds

Money Bill Status

• Classified as a Money Bill under Article 110
• Rajya Sabha:
  • Cannot amend or reject
  • Must return within 14 days

Role of Rajya Sabha

• Can discuss and recommend changes
• Cannot block or amend the Bill
• If not returned within 14 days, it is deemed passed