Finance Minister Nirmala Sitharaman is set to present a crucial Budget on February 1, 2021. The Budget will outline the economy's road to recovery in the post-Covid-19 world.
With the upcoming Budget just around the corner, let us understand some of the terms related to the annual exercise.
What’s an Appropriation Bill?
It is a known fact that the government cannot withdraw money from the Consolidated Fund of India unless the Parliament approves it. In order to withdraw the money, the government passes an Appropriation Bill, which gives the government the authority to withdraw funds from the Consolidated Fund of India to meet its expenses during the course of a financial year.
The government introduces the Appropriation Bill in the lower house of Parliament after discussions on Budget proposals and voting on Demand for Grants.
The Appropriation Bill is first passed by Lok Sabha and then sent to Rajya Sabha. Rajya Sabha has the power to recommend any amendments in this Bill. However, it is the prerogative of Lok Sabha to either accept or reject these recommendations.
How is it different from the Finance Bill?
While the Appropriation Bill deals with how much and for what purpose the government wants to withdraw the money, a Finance Bill contains provisions on how the government intends to meet its expenditure (taxes, levies etc).