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With reference to the Appropriation Bill 2021-22, consider the following statements:
1. Under Article 72 of the Constitution, no amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament.
2. Both appropriation and finance bills are classified as money bills which do not require the explicit consent of the Rajya Sabha.
Which of the statements given above is/are correct?
  • 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?
Most Upvoted Answer
With reference to the Appropriation Bill 2021-22, consider the followi...
Explanation of the Appropriation Bill 2021-22 Statements
The Appropriation Bill is crucial for ensuring that funds can be withdrawn from the Consolidated Fund of India for government expenditure. Let's examine the two statements provided.
Statement 1: Article 72 of the Constitution
- This statement is incorrect. Article 72 of the Indian Constitution actually pertains to the powers of the President to grant pardons, reprieves, respites, or remissions of punishment under certain circumstances.
- The correct reference for the withdrawal of amounts from the Consolidated Fund is Article 114, which states that no amount can be withdrawn without the appropriation made by law.
Statement 2: Classification of Appropriation and Finance Bills
- This statement is correct. Both Appropriation Bills and Finance Bills are classified as money bills under Article 110 of the Constitution.
- Money bills do not require the explicit consent of the Rajya Sabha. They can only be introduced in the Lok Sabha, and the Rajya Sabha can only make recommendations.
Conclusion
- Since the first statement is incorrect and the second statement is correct, the overall answer is option 'B' (2 only).
This understanding is essential for grasping the legislative process in India, particularly regarding financial matters.
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Community Answer
With reference to the Appropriation Bill 2021-22, consider the followi...
The Lok Sabha cleared the Appropriation Bill 2021-22, allowing the Central government to draw funds from the Consolidated Fund of India for its operational requirements and implementation of various programmes.
  • Under Article 114(3) of the Constitution, no amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament.
  • After the Demands for Grants are voted by the Lok Sabha, Parliament's approval to the withdrawal from the Consolidated Fund of the amounts so voted and of the amount required to meet the expenditure charged on the Consolidated Fund is sought through the Appropriation Bill.
Guillotine
  • The Bill was passed after Speaker Om Birla put it through guillotine, a legislative mechanism to approve the fast-tracking of the passage of outstanding demands for grants without discussion.
  • While guillotine literally is a large, weighted blade used for executing a condemned person, in legislative parlance, to ''guillotine'' means to bunch together and fast-track the passage of financial business.
  • It is a fairly common procedural exercise in Lok Sabha during the Budget Session.
Finance Bill
  • The Lok Sabha will now discuss the Finance Bill, which essentially contains the government's tax proposals. Once the Finance Bill is passed, the budget exercise is complete.
  • Both appropriation and finance bills are classified as money bills which do not require the explicit consent of the Rajya Sabha. The upper house only discusses them and returns the bills.
  • After passing the Finance Bill, it enters the statute as the Finance Act. Thus, the final Budget gets approved.
Hence only statement 2 is correct.
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With reference to the Appropriation Bill 2021-22, consider the following statements:1. Under Article 72 of the Constitution, no amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament.2. Both appropriation and finance bills are classified as money bills which do not require the explicit consent of the Rajya Sabha.Which of the statements given above is/are correct?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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