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Definition: An Appropriation Bill allows the government to make use of the required funds from the Consolidated Fund of India, to meet the expenses of the financial year.
The Consolidated Fund of India is like the country’s savings account gathering all of its income into one pot. To spend this money on national expenses, the government needs approval from the Parliament, State Legislature approval and the President, as outlined in Article 114. If there's a mismatch between proposed and actual spending, the Comptroller and Auditor General (CAG) reports it to the legislatures for review. Simply put, it's like a child being allowed to use their pocket money, but with permission and under the watchful eye of the elders.
Here’s how the Appropriation Bill is carried out:
The Appropriation Bill is introduced in the Lok Sabha after discussing the Budget
After the Lok Sabha passes it, the bill goes to the Rajya Sabha.
Once the president approves it, the bill becomes an Appropriation Act.
The Appropriation Act automatically comes to an end when its purpose is completed.
The government can’t access money from the Consolidated Fund of India until the Appropriation Act is in place
To handle immediate expenses, the Lok Sabha can grant money in advance for part of the year. This is called a ‘Vote on Account’.
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