Haryana Legislature Authorizes Excess Expenditure for Past Financial Years

The Haryana Appropriation (No. 6) Act, 2023, an Act of the Legislature of the State of Haryana, received the assent of the Governor of Haryana on December 28, 2023, and was subsequently published for general information on January 1, 2024. This legislation was enacted to provide for the authorization of appropriation of money from the Consolidated Fund of the State of Haryana. Its primary purpose is to regularize and provide legal sanction for amounts spent on certain services during the financial years 2019-20, 2020-21, and 2021-22, which exceeded the sums originally authorized or granted for those services during the respective periods. The Act came into force upon its publication in the Official Gazette.

Under the provisions of the Act, specific sums are deemed to have been authorized for payment and application from the Consolidated Fund of the State. These include an aggregate of One Hundred Fifty-Three Crore, Thirty-Nine Lakh, Twenty-Nine Thousand, Four Hundred Sixty rupees (₹153,39,29,460) for the financial year 2019-20, Twenty-One Crore, Ninety-Two Lakh, Sixty-Three Thousand, Six Hundred Three rupees (₹21,92,63,603) for 2020-21, and Sixty-Three Crore, Forty-Seven Lakh, Ten Thousand, Two Hundred Forty-Six rupees (₹63,47,10,246) for 2021-22. These amounts correspond to charges incurred in excess of initial grants for services such as Buildings and Roads, Food and Supplies, Tourism, and Planning and Statistics, as detailed in the Act's Schedule. The legislation provided: “to provide for the authorization of appropriation of money out of the Consolidated Fund of the State of Haryana to meet the amount spent on certain services during the financial years 2019-20, 2020-21 and 2021-22 in excess of the amount authorized or granted for these services during these years.” The sums so authorized are deemed to have been appropriated for the services and purposes outlined in the Schedule for the respective financial years.

The legislative intent behind the Haryana Appropriation (No. 6) Act, 2023, is to uphold the principles of financial accountability and constitutional governance. In India, all government expenditure must receive legislative approval. When actual expenditure by the state government exceeds the amounts initially sanctioned by the Legislative Assembly through regular budget processes, it becomes necessary to seek retrospective approval for these "excess grants." This Act addresses such a situation, providing the requisite legal framework to regularize funds already disbursed. It ensures that even expenditure incurred beyond initial budgetary allocations receives proper legislative sanction, thereby maintaining transparency and adherence to the constitutional mandate that no money can be drawn from the Consolidated Fund without the authority of law. This mechanism closes the statutory gap that arises when unforeseen circumstances or operational necessities lead to expenditure surpassing the original grants, ensuring that all public spending is ultimately accounted for and approved by the elected representatives.

Keywords: Haryana Appropriation Act, Excess Expenditure, Consolidated Fund, State Legislature, Financial Regularization, Budgetary Approval, Haryana Government, Legislative Sanction, Public Finance

Geo Tags: India, Haryana District: Not Applicable