Budget in Parliament V (1)

5. Passing of Appropriation Bill

1. Purpose: The Appropriation Bill is introduced to provide the legal authority for the withdrawal of money from the Consolidated Fund of India to meet the grants voted by the Lok Sabha and the expenditure charged on the Consolidated Fund.

2. No Amendments: No amendments can be proposed to the Appropriation Bill that would alter the amount or destination of grants voted or the expenditure charged.

3. Appropriation Act: After the President's assent, the Appropriation Bill becomes the Appropriation Act, which authorizes payments from the Consolidated Fund of India.

4. Vote on Account: Before the Appropriation Bill is passed, the Lok Sabha can grant a "vote on account" to allow the government to carry on its normal activities after March 31 (the end of the financial year). This is an advance grant for a part of the financial year and is usually granted for two months, representing one-sixth of the total estimation.

6. Passing of Finance Bill

1. Purpose: The Finance Bill is introduced to give effect to the financial proposals of the Government of India for the forthcoming financial year.

2. Nature: It is subject to all the conditions applicable to a Money Bill, which means it must originate in the Lok Sabha and requires the Speaker's certification as a Money Bill.

3. Amendments: Unlike the Appropriation Bill, amendments to reject or reduce a tax can be moved in the case of the Finance Bill.

4. Provisional Collection of Taxes Act: The Finance Bill must be enacted within 75 days of its introduction, as required by the Provisional Collection of Taxes Act of 1931.

5. Finance Act: After the Parliament passes the Finance Bill and the President gives his assent, it becomes the Finance Act. This act legalizes the income side of the budget and completes the process of budget enactment.