Appropriation Bill 2026 — The Lok Sabha has passed the Appropriation (No-3) Bill, 2026, authorising withdrawal from the Consolidated Fund of India to meet excess expenditure. Here are the key facts, constitutional provisions under Article 114, and practice MCQs for UPSC aspirants.
Why in News?
The Lok Sabha has passed the Appropriation (No – 3) Bill, 2026, authorising the appropriation of money from the Consolidated Fund of India (CFI) to meet excess expenditure on certain services during the financial year ended 31st March 2023.
Key Facts for Prelims: Appropriation Bill 2026
- Bill: Appropriation (No – 3) Bill, 2026
- Purpose: Authorise withdrawal from CFI for excess expenditure already incurred in FY 2022-23
- Constitutional basis: Article 114 — no money can be withdrawn from CFI except under appropriation made by law
- Classification: It is a Money Bill under Article 110
- Introduced in: Lok Sabha only (as with all Money Bills)
- Rajya Sabha’s role: Can only recommend changes within 14 days; Lok Sabha may accept or reject recommendations
Static Exam Link: Financial Procedure in Parliament
- Article 112: Annual Financial Statement (Union Budget) to be laid before Parliament
- Article 113: Procedure for voting of grants by Lok Sabha
- Article 114: Appropriation Bills — no withdrawal from CFI without an Appropriation Act
- Article 115: Supplementary, additional or excess grants
- Article 116: Votes on Account, Vote of Credit, Exceptional Grants
- Three types of funds: Consolidated Fund of India (Article 266), Contingency Fund of India (Article 267), Public Account of India (Article 266(2))
- Key difference: Appropriation Bill authorises withdrawal of money; Finance Bill deals with taxation/revenue generation
- No amendment allowed: Parliament cannot amend an Appropriation Bill to alter the amount or destination of any grant
Quick Revision Table: Appropriation Bill 2026
| Parameter | Detail |
|---|---|
| Bill Name | Appropriation (No – 3) Bill, 2026 |
| Constitutional Provision | Article 114 |
| Money Bill Classification | Article 110 |
| Fund Involved | Consolidated Fund of India |
| Rajya Sabha’s Power | Recommend changes within 14 days |
| Amendment Allowed? | No — amount or purpose of grants cannot be altered |
| Charged Expenditure Includes | Salaries of President, SC/HC Judges, CAG, etc. |
| Difference from Finance Bill | Appropriation = withdrawal; Finance = taxation |
Trap / Confusing Points on Appropriation Bill 2026
| Confusion | Correct Fact |
|---|---|
| Appropriation Bill and Finance Bill are the same | Appropriation Bill authorises withdrawal of funds; Finance Bill handles taxation |
| Rajya Sabha can amend Money Bills | Rajya Sabha can only recommend changes within 14 days; it cannot amend or reject |
| Money can be withdrawn from CFI by executive order | No — Article 114 mandates an Act of Parliament for any withdrawal |
| Charged expenditure is voted upon by Lok Sabha | Charged expenditure is not voted — it is directly charged on the CFI (only discussed, not voted) |
| Contingency Fund and Consolidated Fund are the same | CFI (Article 266) holds all government revenues; Contingency Fund (Article 267) is for unforeseen expenses, at the disposal of the President |
Practice MCQs on Appropriation Bill 2026
1. Under which Article is an Appropriation Bill introduced in Parliament?
a. Article 110
b. Article 112
c. Article 114
d. Article 116
Ans: C
Article 114 mandates that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law.
2. Which of the following is NOT a characteristic of an Appropriation Bill?
a. It is a Money Bill
b. Rajya Sabha can reject it
c. It authorises withdrawal from CFI
d. It cannot be amended to alter the grant amount
Ans: B
Rajya Sabha can only recommend changes within 14 days; it cannot reject an Appropriation Bill.
3. The Contingency Fund of India is established under:
a. Article 265
b. Article 266
c. Article 267
d. Article 268
Ans: C
Article 267 establishes the Contingency Fund of India, placed at the disposal of the President.
4. Consider the following statements:
1. Charged expenditure on the Consolidated Fund of India is voted upon by Lok Sabha.
2. The Finance Bill deals with taxation while the Appropriation Bill authorises withdrawal.
Which of the above is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Ans: B
Charged expenditure is not voted upon — it is only discussed. Statement 2 correctly distinguishes the two bills.
5. Vote on Account under Article 116 allows the government to:
a. Impose new taxes before the budget is passed
b. Withdraw money from the Contingency Fund
c. Obtain advance grants for part of the financial year pending budget approval
d. Amend the Appropriation Act
Ans: C
Vote on Account allows the government to withdraw funds for a limited period until the full budget and Appropriation Bill are passed.
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