Parliamentary Financial Procedure (Polity)
Parliamentary Financial Procedure (Polity)
Why In News:
The Rajya Sabha cleared an Appropriation Bill authorising the government to draw Rs 54,067 crore in excess expenditure from the Consolidated Fund of India, bringing renewed attention to India's constitutional procedure for parliamentary control over public finance.
Source: The Indian Express, Page 8, 7 August 2026 - 'Rajya Sabha clears Appropriation Bill for Rs 54,067 cr excess spend'
Constitutional Basis
Article 114: No money can be withdrawn from the Consolidated Fund of India except under an appropriation made by law through an Appropriation Bill.
Article 115: Provides for Supplementary, Additional or Excess Grants when the amount authorised for a service is found to be insufficient or unforeseen expenditure has arisen.
Article 266: Establishes the Consolidated Fund of India and the Public Account of India.
Appropriation Bill vs Finance Bill
Appropriation Bill: Authorises withdrawal of funds from the Consolidated Fund for expenditure voted through the Demands for Grants; it is treated as a Money Bill under Article 110.
Finance Bill: Gives legal effect to the government's taxation proposals for the year.
Rajya Sabha's limited role: As a Money Bill, the Rajya Sabha cannot amend or reject the Appropriation Bill; it can only recommend changes within fourteen days, which the Lok Sabha may accept or reject.
Key Facts for Prelims
Excess Grant regularisation: Excess expenditure must first be examined and approved by the Public Accounts Committee (PAC) before Parliament regularises it through an Appropriation Bill.
Role of CAG: Reports of the Comptroller and Auditor General of India form the basis for the PAC's examination of excess expenditure.
Vote on Account: Under Article 116, allows the government to draw funds for a limited period before the full budget is passed by Parliament.
Contingency Fund of India: Established under Article 267, it is at the disposal of the President to meet unforeseen expenditure, later recovered through parliamentary authorisation.