Did Lok Sabha pass the Budget?
THERE was total confusion as to whether the Budget 2014 was passed in the Lok Sabha on Friday. Some reported that the Finance Bill has been passed, while some others reported that the "Appropriation Bill" was passed, while the fact is that none of these was passed. What was actually passed was the Appropriation Bill pertaining to the excess over grants for the year 2011-12.
What is the sanctity of the Demand for grants and Appropriation Bill if the Government can spend money in excess of the grants voted by Parliament?
Let us see the Constitutional provisions:
Article 114 of the Constitution deals with Appropriation Bill, which reads as:
Appropriation Bills
(1) As soon as may be after the grants under article 113 have been made by the House of the People, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of India of all moneys required to meet
(a) the grants so made by the House of the People; and
(b) the expenditure charged on the Consolidated fund of India but not exceeding in any case the amount shown in the statement previously laid before Parliament.
As per Article 115(1)(b), the President shall - if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year, cause to be laid before both the Houses of Parliament another statement showing the estimated amount of that expenditure or cause to be presented to the House of the People a demand for such excess, as the case may be.
So obviously the Government can spend money out of the Consolidated Fund of India in excess of the grants sanctioned by Parliament and such excess spending will be approved by the Parliament in an appropriation bill.
It was one of such bills pertaining to the year 2011-12 which was passed by Lok Sabha on Friday.
Arun Jaitley's first budget is likely to be passed next week or the week after that.