Appropriation (No.2) Bill 2024

FM Sitharaman tables Appropriation (No 2) Bill 2024 in Rajya Sabha

Context

Recently the Lok Sabha has passed the Appropriation (No.2) Bill 2024.

About

  • It is a vital legislative measure that authorises the Central Government of India to draw funds from the Consolidated Fund of India to meet its expenditure for the monetary year 2024-25. 
  • This bill is a big step in ensuring the easy functioning of diverse government departments and the implementation of several public welfare schemes.

Key Highlights 

  • Introduction of bill:  It was delivered by the Finance Minister and passed by a voice vote in the Lok Sabha.
    • The Speaker of the Lok Sabha, Om Birla, guillotined discussions on budgets for several ministries before taking over the Appropriation Bill for attention and passage.
  • Financial Provisions: The bill outlines the specific amounts to be allocated to exclusive ministries and departments.
    • For example, significant allocations were made for the Ministry of Defence, Ministry of Agriculture, and Ministry of Health and Family Welfare, among others. These allocations are vital for the continued operation and improvement of those sectors
  • Impact on Public Welfare: The budget appropriated through this bill will aid several public welfare schemes and projects.
    • For instance, the Pradhan Mantri Matsya Sampada Yojana, aimed at boosting the fisheries sector, and various health and education projects will benefit from those allocations.

Importance 

  • The Bill underscores the government’s dedication to ensuring that finances are available for essential services and development projects. 
  • It displays the government’s consciousness on equitable distribution of resources throughout states, as highlighted via the allocations made to states like West Bengal, Andhra Pradesh, and Maharashtra
  • It is an essential legislative measure that ensures the availability of funds for the government’s planned expenditure for the financial year 2024-25.

Consolidated Fund of India 

  • All revenues received via the government, loans raised by it, and also its receipts from recoveries of loans granted by it form the Consolidated Fund. 
  • All expenditure of the government is incurred from the Consolidated Fund and no quantity can be withdrawn from the fund without authorisation from the Parliament.

Guillotine

In legislative terms, a guillotine approach to expedite the passage of monetary enterprise by grouping it together, a commonplace practice in the Lok Sabha all through the Budget Session.

Source: The Indian Express

UPSC Prelims Practice Question

Q. Which of the following are the methods of Parliamentary control over public finance in India? (2012)

  1. Placing Annual Financial Statement before the Parliament
  2. Withdrawal of moneys from Consolidated Fund of India only after passing the Appropriation Bill
  3. Provisions of supplementary grants and vote-on account
  4. A periodic or at least a mid-year review of programme of the Government against macroeconomic forecasts and expenditure by a Parliamentary Budget Office
  5. Introducing Finance Bill in the Parliament

Select the correct answer using the codes given below:

(a) 1, 2, 3 and 5 only

(b) 1, 2 and 4 only

(c) 3, 4 and 5 only

(d) 1, 2, 3, 4 and 5

Ans: (a)

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