📜 Article 204 of the Indian Constitution
Title: Appropriation Bills
🔹 Text Summary:
Article 204 provides the legal process for the withdrawal of money from the Consolidated Fund of the State. It ensures that the government cannot spend public money unless it is authorized by law through an Appropriation Bill passed by the Legislative Assembly.
📌 Clause-wise Breakdown:
| Clause | Provision |
|---|---|
| (1) | After the demands for grants (under Article 203) are voted by the Assembly, a Bill is introduced to provide for appropriation out of the Consolidated Fund of the State. |
| ✅ This is called the Appropriation Bill. | |
| (2) | The Appropriation Bill may include: |
| — Voted expenditure (approved through demands for grants) | |
| — Charged expenditure (exempt from voting under Article 203) | |
| ✅ The Bill must be passed by the Legislative Assembly to authorize spending. |
🧠 Key Takeaways:
-
No money can be withdrawn from the State Consolidated Fund without passing the Appropriation Bill.
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It is the final legal authority for government spending for a financial year.
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Ensures legislative control over the executive's financial actions.
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Even charged expenditures are included for accounting, though not voted on.
🏛️ Example:
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📄 Article 202 – Budget is presented (Annual Financial Statement)
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🗳️ Article 203 – Assembly votes on expenditure (Demands for Grants)
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📜 Article 204 – Appropriation Bill is passed to legally allow the government to spend
⚖️ Related Articles:
| Article | Subject |
|---|---|
| 202 | Annual Financial Statement (State Budget) |
| 203 | Procedure for voting on Demands for Grants |
| 204 | Appropriation Bill – final authority to spend |
| 266 | Consolidated Fund of the State |
🔁 Real-Life Relevance:
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Every year, state finance ministers present Appropriation Bills in Vidhan Sabha after the budget is approved.
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Appropriation Acts remain in force for the entire financial year.
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