Actual Article
Article 114: Appropriation Bills
- Appropriation of Funds:
- As soon as may be after the grants under Article 113 have been made by the House of the People, there shall be introduced in Parliament a Bill to provide for the appropriation out of the Consolidated Fund of India of all moneys required to meet:
a) The grants so made by the House of the People; and
b) The expenditure charged on the Consolidated Fund of India but not exceeding in any case the amount shown in the statement previously laid before Parliament.
- Procedure for Passing Appropriation Bills:
- No amendment shall be proposed to any such Bill in either House of Parliament which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of India, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final.
- Role of Appropriation Bills:
- Subject to the provisions of Articles 115 and 116, no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law passed in accordance with the provisions of this article.
UPSC Notes for Article 114
Explanation:
- Appropriation of Funds:
- After the Lok Sabha approves the demands for grants, an Appropriation Bill is introduced to authorize the withdrawal of funds from the Consolidated Fund of India.
- The Bill includes amounts for both the approved grants and expenditures charged on the Consolidated Fund.
- Passing Appropriation Bills:
- Amendments to the Appropriation Bill that alter the amount or destination of any grant or charged expenditure are not allowed.
- The presiding officer’s decision on the admissibility of amendments is final, ensuring a streamlined process.
- Role of Appropriation Bills:
- Appropriation Bills ensure that no money is withdrawn from the Consolidated Fund of India without legislative authorization, providing a legal framework for government expenditure.
Key Points:
- Legislative Authorization: Appropriation Bills provide the legal basis for government expenditure, ensuring legislative control over public finances.
- Finality of Presiding Officer’s Decision: Ensures the efficient passage of the Bill by preventing disruptive amendments.
- Financial Accountability: Ensures that government spending is conducted within the limits set by Parliament, maintaining accountability and transparency.
Important Cases and Commissions Related to Article 114
Cases:
- V.N. Shukla vs. Union of India (1968): Emphasized the importance of legislative approval for government expenditure, reinforcing the principles outlined in Article 114.
- M.S.M. Sharma vs. Krishna Sinha (1959): Discussed the procedural aspects of financial legislation and the role of the presiding officer in maintaining order during the legislative process.
Commissions:
- Sarkaria Commission: Examined Centre-State financial relations and the importance of legislative control over public expenditure.
- National Commission to Review the Working of the Constitution (NCRWC) (2002): Suggested reforms to ensure efficient and transparent budgetary processes, including the passage of Appropriation Bills.
Previous Year Prelims Questions Related to Article 114
- (UPSC Prelims 2015) What is the purpose of an Appropriation Bill as mentioned in Article 114 of the Indian Constitution?
- A. To appropriate money out of the Contingency Fund of India
- B. To provide for the appropriation of money out of the Consolidated Fund of India
- C. To regulate the borrowing of money by the Government of India
- D. To provide for grants-in-aid to states Correct Answer: B. To provide for the appropriation of money out of the Consolidated Fund of India
- (UPSC Prelims 2018) Who has the final authority to decide whether an amendment to an Appropriation Bill is admissible in Parliament?
- A. The President
- B. The Prime Minister
- C. The Finance Minister
- D. The Presiding Officer of the House Correct Answer: D. The Presiding Officer of the House
Previous Year Mains Questions Related to Article 114
- Mains 2017: “Discuss the significance of Appropriation Bills in the financial administration of India. How do these Bills ensure legislative control over government expenditure as per Article 114?”
- Mains 2019: “Analyze the role of the presiding officer in the passage of Appropriation Bills. How does Article 114 facilitate efficient financial management in Parliament?”
Additional Insights:
- Ensuring Financial Discipline: Appropriation Bills are crucial for ensuring that government spending is disciplined and within the limits set by Parliament, promoting responsible fiscal management.
- Streamlined Process: By prohibiting amendments that alter the amounts or destinations of grants, Article 114 ensures a streamlined and efficient legislative process for financial approvals.
- Balancing Executive and Legislative Roles: While the executive proposes expenditure through the budget, legislative approval through Appropriation Bills ensures a balance between executive action and legislative oversight.
Understanding Article 114 is crucial for UPSC aspirants as it outlines the procedure for legislative approval of government expenditure, ensuring accountability and transparency in financial administration. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions that govern financial management within India’s parliamentary system.