Part VI - The States • Article

Article 204 Simplified: Appropriation Bills

Article 204 is the 'money release' step in the State budget cycle. Once the Assembly approves demands for grants (under Article 203), an Appropriation Bill is introduced to formally authorize the withdrawal of money from the State's Consolidated Fund. No money can be taken from the Consolidated Fund without this Bill becoming law. Importantly, no amendment can be proposed to an Appropriation Bill that would change the amount or destination of any approved grant.

Official Text

(1) As soon as may be after the grants under article 203 have been made by the Assembly, there shall be introduced a Bill 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; and (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 which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of the State, and the decision of the person presiding as to whether an amendment is inadmissible 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 (3) Subject to the provisions of articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this article.

Simple Meaning

Explain Like Ten

Voting on the budget is like deciding how much pocket money each department gets. But the money doesn't actually leave the government's account until the Appropriation Bill is passed—that's the official 'permission slip' to release the money. Nobody can move money around once it's been approved: you can't redirect money from one department to another after the Bill is passed.

Student Mode

Article 204 mirrors Article 114 (Union Appropriation Bill). Three rules: (1) After Assembly approves grants under Article 203, an Appropriation Bill must be introduced covering those grants plus charged expenditure; (2) No amendment altering the amount or destination of any approved grant is admissible—Speaker's ruling on inadmissibility is final; (3) No money can leave the State Consolidated Fund except under an appropriation law (subject to Articles 205 and 206 exceptions).

Example

After the Uttar Pradesh Assembly approves the annual budget demands, the Finance Minister introduces the Appropriation Bill. An opposition MLA cannot table an amendment that says 'redirect ₹200 crore from roads to education'—such amendments are constitutionally barred. Once the Bill passes, the State Treasury is legally authorized to release funds.

Key Takeaway

Article 204 ensures that no money leaves the State Consolidated Fund without a specific law (Appropriation Bill), and prevents unauthorized tinkering with approved budget allocations.

FAQs

Can an MLA propose an amendment to the Appropriation Bill to redirect funds from one ministry to another?

No. Article 204(2) expressly bars any amendment that varies the amount or alters the destination of any approved grant. Such an amendment would be inadmissible, and the Speaker's ruling on this is final.

What is the relationship between Article 204 and Articles 205 and 206?

Article 204 sets the general rule that money can only leave the Consolidated Fund through an Appropriation Act. Articles 205 (supplementary grants) and 206 (votes on account/credit) provide the exceptions that allow mid-year or emergency financial withdrawals.

Quiz

Under Article 204, what is the purpose of an Appropriation Bill?

Answer: To formally authorize withdrawal of money from the Consolidated Fund

Under Article 204(2), who has the final say on whether an amendment to an Appropriation Bill is admissible?

Answer: The Speaker (person presiding)