All you need to know about the Jammu and Kashmir Appropriation Bill

An Appropriation Bill allows the Centre to incur expenditure from the Consolidated Fund of India to meet the expenses during the ongoing financial year.

Story so far: On March 22, Finance Minister Nirmala Sitharaman moved the two Jammu and Kashmir Appropriation Bills in the Rajya Sabha for consideration.

The two Bills – Jammu and Kashmir Appropriation Bill, 2022 and Jammu and Kashmir Appropriation (No. 2) Bill, 2022 – will allow the Centre to authorise payment and appropriation of certain sums from and out of the Consolidated Fund of the Union Territory for the services of the Financial Year 2021-22 and 2022-23 respectively.

According to the first Bill, “from and out of the consolidated fund of Jammu and Kashmir, there may be paid and applied sums not exceeding those specified in column 3 of the Schedule amounting in the aggregate to the sum of eighteen thousand eight hundred sixty crore, thirty-two lakh and thirty-four thousand rupees towards defraying the several charges which will come in course of payment during the financial year 2021-22 in respect of the services specified in column 2 of the Schedule.”

As per article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament. An Appropriation Bill specifies the quantum and purpose of the government for withdrawing money.

The government introduces the Appropriation Bill in the Lower House after discussions on Budget proposals and Voting on Demand for Grants.

The Bill is first passed by the Lok Sabha and then sent to the Rajya Sabha. The Rajya Sabha has the power to recommend any amendments. However, it is the prerogative of the Lok Sabha to either accept or reject the recommendations made by the Upper House.

The salient feature of the Appropriation Bill is its automatic repeal clause, whereby the Act gets repealed by itself after it meets its statutory purpose.