What Is Constitution Of India Article 204?

Constitution Of India Article 204: Appropriation Bills

(1) As soon as may be after the grants under Article 203 have been made by the Assembly, a Bill shall be introduced 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.
• (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 that will:

• (a) Vary the amount or alter the destination of any grant made.
• (b) Vary the amount of any expenditure charged on the Consolidated Fund of the State.

The decision of the presiding officer regarding the admissibility of an amendment 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(3) Subject to the provisions of Articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this Article.

Brief Detail

Article 204 ensures that after grants are approved under Article 203, an Appropriation Bill is introduced to authorize the withdrawal of funds from the Consolidated Fund of the State. It also restricts amendments that alter the amount or purpose of the funds and ensures that withdrawals occur only through legally passed appropriations.

Question & Answers

What is the purpose of an Appropriation Bill under Article 204?

The Appropriation Bill is introduced to legally authorize the withdrawal of funds from the Consolidated Fund of the State for meeting approved grants and expenditures.

Can the Legislature amend an Appropriation Bill?

No, the Legislature cannot propose amendments that alter the allocated amount or change the purpose of funds as decided in the grants.

Who ensures that no unauthorized funds are withdrawn?

Article 204 mandates that funds can only be withdrawn based on a law passed through the Appropriation Bill, ensuring financial discipline.

Example

Suppose the State Legislature approves ₹500 crore for healthcare and ₹200 crore for road infrastructure under Article 203. The Appropriation Bill formalizes this allocation, ensuring that the funds are withdrawn only for these purposes without unauthorized modifications.

Summary

Article 204 ensures that financial allocations approved by the State Legislature are legally authorized through an Appropriation Bill before funds are withdrawn from the Consolidated Fund. It safeguards against unauthorized amendments and ensures proper financial management.