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Consider the following statements regarding Appropriation Bill:
1. It is introduced to provide for the appropriation, out of the Consolidated Fund of India.
2. Amendments can be proposed to the appropriation bill to alter the destination of any grant only in the Lok Sabha.
Which of the above statements is/are incorrect?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Consider the following statements regarding Appropriation Bill:1. It i...
Statement 2 is incorrect: No such amendment can be proposed to the appropriation bill in either house of the Parliament that will have the effect of varying the amount or altering the destination of any grant voted, or of varying the amount of any expenditure charged on the Consolidated Fund of India.
Passing of Appropriation Bill
1. The Constitution states that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law. Accordingly, an appropriation bill is introduced to provide for the appropriation, out of the Consolidated Fund of India, all money required to meet:
  • The grants voted by the Lok Sabha.
  • The expenditure charged on the Consolidated Fund of India.
2. No such amendment can be proposed to the appropriation bill in either house of the Parliament that will have the effect of varying the amount or altering the destination of any grant voted, or of varying the amount of any expenditure charged on the Consolidated Fund of India.
3. The Appropriation Bill becomes the Appropriation Act after it is assented to by the President. This act authorises (or legalises) the payments from the Consolidated Fund of India. This means that the government cannot withdraw money from the Consolidated Fund of India till the enactment of the appropriation bill.
4. This takes time and usually goes on till the end of April. But the government needs money to carry on its normal activities after 31 March (the end of the financial year). To overcome this functional difficulty, the Constitution has authorised the Lok Sabha to make any grant in advance in respect to the estimated expenditure for a part of the financial year, pending the completion of the voting of the demands for grants and the enactment of the appropriation bill. This provision is known as the ‘vote on account’. It is passed (or granted) after the general discussion on budget is over. It is generally granted for two months for an amount equivalent to one sixth of the total estimation.
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Consider the following statements regarding Appropriation Bill:1. It i...
B)
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Consider the following statements regarding Appropriation Bill:1. It is introduced to provide for the appropriation, out of the Consolidated Fund of India.2. Amendments can be proposed to the appropriation bill to alter the destination of any grant only in the Lok Sabha.Which of the above statements is/are incorrect?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'B'. Can you explain this answer?
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