Article 114 of CoI : Article 114: Appropriation Bills.

Explanation using Example

Example 1:

Scenario: The Indian government has proposed a new budget for the upcoming financial year. The budget includes various grants for different sectors such as education, healthcare, and infrastructure.

Application of Article 114:

1. Introduction of Appropriation Bill: After the House of the People (Lok Sabha) approves the grants under Article 113, the Finance Minister introduces an Appropriation Bill in the Parliament. This bill specifies the total amount of money required from the Consolidated Fund of India to meet the approved grants and other expenditures.
2. No Amendments Allowed: During the discussion of the Appropriation Bill in either House of Parliament, no member can propose amendments that would change the amount or purpose of the grants already approved. For instance, if ₹10,000 crore has been approved for healthcare, no member can propose to increase or decrease this amount or divert it to another sector.
3. Final Decision: If there is any dispute about the admissibility of an amendment, the decision of the presiding officer (Speaker of the Lok Sabha or Chairman of the Rajya Sabha) is final.
4. Withdrawal of Funds: Once the Appropriation Bill is passed by both Houses of Parliament and receives the President's assent, the government can withdraw the specified amounts from the Consolidated Fund of India to fund the approved grants and expenditures.

Example 2:

Scenario: The government needs additional funds for disaster relief due to an unexpected natural calamity.

Application of Article 114:

1. Supplementary Appropriation Bill: After the initial budget and grants have been approved, the government realizes that additional funds are needed for disaster relief. The Finance Minister introduces a Supplementary Appropriation Bill in the Parliament to provide for the additional funds required.
2. Approval Process: The Supplementary Appropriation Bill follows the same process as the original Appropriation Bill. It must be approved by the House of the People and then passed by both Houses of Parliament.
3. No Amendments Allowed: Similar to the original Appropriation Bill, no amendments can be proposed to change the amount or purpose of the additional grants. For example, if ₹5,000 crore is requested for disaster relief, no member can propose to use this amount for any other purpose.
4. Final Decision and Withdrawal: Once the Supplementary Appropriation Bill is passed and receives the President's assent, the government can withdraw the additional funds from the Consolidated Fund of India to address the disaster relief efforts.

Example 3:

Scenario: The government has allocated funds for a new infrastructure project, but halfway through the financial year, it becomes evident that the project requires more funds than initially estimated.

Application of Article 114:

1. Revised Appropriation Bill: The Finance Minister introduces a Revised Appropriation Bill to cover the additional funds needed for the infrastructure project.
2. Approval Process: The Revised Appropriation Bill is presented to the House of the People for approval. Once approved, it is then passed by both Houses of Parliament.
3. No Amendments Allowed: During the discussion, no amendments can be proposed to alter the amount or purpose of the additional funds requested for the infrastructure project.
4. Final Decision and Withdrawal: After the Revised Appropriation Bill is passed and receives the President's assent, the government can withdraw the additional funds from the Consolidated Fund of India to continue the infrastructure project without any financial hindrance.

These examples illustrate how Article 114 ensures that the government can only withdraw funds from the Consolidated Fund of India through a legally approved process, maintaining financial discipline and accountability.