CSEET · Economic and Business Environment · Indian Union Budget
The Appropriation Bill, introduced after the Lok Sabha passes the demands for grants, is intended to:
The Appropriation Bill authorises withdrawal from the Consolidated Fund of India of the money required for the voted demands for grants and the charged expenditure. Tax proposals are handled by the Finance Bill, not by this Bill, and it does not govern the Contingency Fund or RBI borrowing.
- AAuthorise withdrawal from the Consolidated Fund of India of the amounts needed to meet the voted grants and charged expenditureCorrect
- BImpose new taxes proposed in the Budget for the coming year
- CAllow spending from the Contingency Fund of India during emergencies
- DPermit the government to borrow from the Reserve Bank without limit
Explanation
No money can be withdrawn from the Consolidated Fund without legal authority, and the Appropriation Bill provides this for voted grants and charged expenditure. New taxes are given effect through the Finance Bill. The Contingency Fund is operated by advances under separate authority, and the Bill has no role in RBI borrowing. Hence the first option is correct.
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