Article 204: Appropriation Bills

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(1) As soon as may be after the grants under article 203 have been made by the Assembly, there shall be introduced a Bill 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 Assembly; 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.

(2) No amendment shall be proposed to any such Bill in the House or 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, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final.

(3) Subject to the provisions of articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this article.

Explanations

Article 204 of the Indian Constitution outlines the requirements and restrictions regarding Appropriation Bills, which authorize withdrawals from the Consolidated Fund of the State to meet state expenditure. This article safeguards financial accountability by regulating legislative amendments to these bills, maintaining budget integrity.

Clause-by-Clause Explanation

Clause (1) – Requirement for Appropriation Bills

After the Assembly has sanctioned grants under Article 203, an Appropriation Bill is introduced to allocate the necessary funds from the Consolidated Fund to meet these grants and other related expenditures.

Clause (2) – Restrictions on Amendments to Appropriation Bills

This clause restricts amendments that would alter the amount or destination of approved grants, reinforcing the Assembly's budgetary decisions.

Clause (3) – Withdrawal of Funds Only under Authorized Appropriation

This clause ensures that withdrawals from the Consolidated Fund of the State are permitted solely under authorized appropriation, promoting responsible budget management and adherence to Articles 205 and 206.

Real-Life Examples

• In 2022, the Rajasthan government introduced an Appropriation Bill to fund COVID-19 relief efforts, meeting urgent healthcare needs through immediate authorized withdrawals.
• The Karnataka Legislative Assembly passed an Appropriation Bill for infrastructure development, with all allocated funds strictly following the guidelines set in Article 204 to prevent misuse.

Historical Significance

Article 204 embodies financial control mechanisms inspired by British parliamentary practices. It underscores the need for legislative oversight of government spending, balancing executive authority with legislative responsibility.

Debates and Amendments

During the Constituent Assembly debates on June 10, 1949, Dr. B.R. Ambedkar introduced a provision focusing on Appropriation Bills to centralize control over public finances. By stipulating legislative approval for every expenditure, the Assembly aimed to prevent arbitrary fund allocations. The revised Article 179 (later Article 204) was thus adopted, reinforcing the Assembly's supervisory role over the state’s financial management.