Article 204 of CoI : Article 204: Appropriation Bills.

Explanation using Example

Example 1:

Scenario: The State of Maharashtra has just concluded its budget session. The Legislative Assembly has approved various grants for different departments such as education, healthcare, and infrastructure under Article 203.

Application of Article 204:

1. Introduction of Appropriation Bill: Following the approval of these grants, the Finance Minister of Maharashtra introduces an Appropriation Bill in the Assembly. This Bill outlines the total amount of money required from the Consolidated Fund of the State to cover the approved grants and any other expenditures.
2. No Amendments Allowed: During the discussion of this Appropriation Bill, a member of the Assembly proposes an amendment to increase the grant for healthcare. However, the Speaker of the Assembly rules this amendment inadmissible, citing Article 204(2), which prohibits any changes to the amounts or purposes of the grants already approved.
3. Withdrawal of Funds: Once the Appropriation Bill is passed by the Assembly, it becomes law. Only then can the funds be legally withdrawn from the Consolidated Fund of Maharashtra to meet the approved expenditures.

Example 2:

Scenario: The State of Karnataka is facing a natural disaster, and the Legislative Assembly has quickly approved emergency grants for disaster relief under Article 203.

Application of Article 204:

1. Introduction of Appropriation Bill: The Chief Minister of Karnataka introduces an Appropriation Bill to allocate funds from the Consolidated Fund of the State to cover the emergency grants for disaster relief.
2. No Amendments Allowed: During the legislative process, a member of the Legislative Council suggests reallocating some of the disaster relief funds to infrastructure repair. The presiding officer of the Council declares this amendment inadmissible under Article 204(2), as it would alter the destination of the grant.
3. Withdrawal of Funds: After the Appropriation Bill is passed by both Houses of the Legislature, it becomes law. The State Government can now legally withdraw the necessary funds from the Consolidated Fund of Karnataka to provide disaster relief.

Example 3:

Scenario: The State of Tamil Nadu has approved its annual budget, including grants for various social welfare schemes under Article 203.

Application of Article 204:

1. Introduction of Appropriation Bill: The Finance Minister of Tamil Nadu introduces an Appropriation Bill to allocate funds from the Consolidated Fund of the State to cover the approved social welfare grants.
2. No Amendments Allowed: During the legislative debate, a member proposes an amendment to reduce the grant for one of the social welfare schemes and increase the grant for another. The Speaker rules this amendment inadmissible under Article 204(2), as it would vary the amount and alter the destination of the grants.
3. Withdrawal of Funds: Once the Appropriation Bill is passed by the Assembly, it becomes law. The funds can then be legally withdrawn from the Consolidated Fund of Tamil Nadu to implement the social welfare schemes.

Example 4:

Scenario: The State of West Bengal has approved grants for a new infrastructure project under Article 203.

Application of Article 204:

1. Introduction of Appropriation Bill: The Finance Minister of West Bengal introduces an Appropriation Bill to allocate funds from the Consolidated Fund of the State to cover the infrastructure project grants.
2. No Amendments Allowed: During the legislative session, a member proposes an amendment to divert some of the infrastructure funds to education. The presiding officer declares this amendment inadmissible under Article 204(2), as it would alter the destination of the grant.
3. Withdrawal of Funds: After the Appropriation Bill is passed by the Assembly, it becomes law. The funds can then be legally withdrawn from the Consolidated Fund of West Bengal to finance the infrastructure project.