Actual Article
Article 204: Appropriation Bills
- As soon as may be after the grants under Article 203 have been made by the House or Houses, a Bill to be known as the Appropriation Bill shall be introduced in the House or Houses of the Legislature of the State to provide for the appropriation out of the Consolidated Fund of the State of all moneys required to meet:
- (a) the grants so made by the House or Houses; and
- (b) the expenditure charged on the Consolidated Fund of the State but not exceeding in any case the amount shown in the statement previously laid before the House or Houses.
- No amendment shall be proposed to any such Bill in either House of the Legislature of the State 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 the State.
UPSC Notes for Article 204
Explanation:
- Appropriation Bill Introduction: Article 204 specifies that following the approval of grants (as per Article 203), an Appropriation Bill must be introduced. This Bill facilitates the actual allocation of funds from the state’s Consolidated Fund to meet the expenditures approved by the legislature and the expenditures charged upon the fund.
- Restrictions on Amendments: The Article restricts amendments to the Appropriation Bill in a manner that would alter the amounts or purposes of the expenditures previously approved. This ensures that the financial decisions approved by the legislature are executed without alteration.
Key Points:
- Purpose of the Appropriation Bill: The primary purpose is to legally withdraw funds from the Consolidated Fund to meet the legislature’s sanctioned expenditures, ensuring that all government spending is under legislative authorization.
- Legislative Control over Public Funds: By prohibiting amendments that change approved grants or charged expenditures, the article upholds the legislature’s decisions on state finances, reinforcing its control over public funds.
Important Cases and Commissions Related to Article 204
Cases:
- No specific landmark cases interpreting Article 204 have been noted, as it involves standard financial legislative procedures.
Commissions:
- Administrative Reforms Commission: May have considered the efficiency and transparency of financial legislative processes, including those related to the Appropriation Bills.
Important Reports Related to Article 204:
- Law Commission Reports: Could address procedural improvements or recommendations for ensuring the integrity and accountability of financial legislation processes, such as those involving Appropriation Bills.
Previous Year Prelims Questions Related to Article 204
- (UPSC Prelims 2016) What is the purpose of the Appropriation Bill as per Article 204?
- A. To set the salaries of government officials
- B. To permit withdrawal of funds from the Consolidated Fund to meet the government’s expenditure
- C. To introduce new taxes
- D. To amend the constitution Correct Answer: B. To permit withdrawal of funds from the Consolidated Fund to meet the government’s expenditure
- (UPSC Prelims 2018) Can amendments be proposed to the Appropriation Bill that alter the amount of expenditure?
- A. Yes, amendments can be proposed in both Houses.
- B. Yes, but only in the Legislative Assembly.
- C. No, amendments cannot vary the amount of expenditure.
- D. No, unless approved by the Governor. Correct Answer: C. No, amendments cannot vary the amount of expenditure
Previous Year Mains Questions Related to Article 204
- Mains 2016: “Discuss the constitutional role of the Appropriation Bill in managing state finances as outlined in Article 204.”
- Mains 2019: “Evaluate the impact of the restrictions on amendments to the Appropriation Bill on the financial autonomy of state legislatures.”
Additional Insights:
- Financial Discipline: Article 204 is crucial for maintaining financial discipline within state governments by ensuring that expenditures occur within the limits approved by the legislature.
- Upholding Legislative Authority: The restrictions on amendments protect the authority of the legislature by ensuring that the executive cannot alter approved financial allocations without legislative consent.
Understanding Article 204 is essential for UPSC aspirants as it highlights the legislative processes involved in the allocation of state funds, emphasizing the constitutional mechanisms that ensure proper financial governance and accountability. This knowledge is crucial for both preliminary and main examinations, offering a deeper understanding of the fiscal responsibilities and controls within state governance.