Parliament Authorises Expenditure from Consolidated Fund for Financial Year 2024-25

The Parliament of India enacted The Appropriation (No. 2) Act, 2024, an Act designed to formally authorise the payment and appropriation of specific sums from the Consolidated Fund of India for the services required during the financial year 2024-25. This legislative instrument received the assent of the President on August 14, 2024, and was subsequently published on the same date for general public information, thereby coming into force immediately. The Act provides the necessary legal framework for the Union Government to incur expenditure for its various functions and services. It specifies that a total sum of one hundred thirty-nine lakh eighty-eight thousand three hundred seventy-one crore and eighty-two lakh rupees (Rs. 139,88,371,82,00,000) may be paid and applied from the Consolidated Fund of India. This substantial allocation is detailed across numerous Ministries and Departments, as outlined in the comprehensive Schedule appended to the Act, covering both revenue and capital expenditures. The legislation further clarifies that references to Ministries or Departments within the Schedule are to be understood as those existing immediately before September 6, 2021, and thereafter as they may be constituted from time to time.

The primary objective of The Appropriation (No. 2) Act, 2024, is to ensure the smooth and lawful functioning of the government by providing the financial resources required for its operations. This annual exercise is a fundamental aspect of parliamentary control over public finance, ensuring that no money can be drawn from the Consolidated Fund of India (the principal government account where all revenues are credited and all expenditures are debited) without legislative sanction. The Act serves to formalise the budgetary allocations approved by Parliament, translating the financial proposals into statutory authority for expenditure. It addresses the legal necessity of authorising funds for various governmental services and purposes, including defence, education, health, infrastructure, and social welfare, among others, for the current financial year. The legislation provided: “From and out of the Consolidated Fund of India 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 one hundred thirty-nine lakh eighty-eight thousand three hundred seventy-one crore and eighty-two lakh rupees towards defraying the several charges which will come in course of payment during the financial year 2024-25 in respect of the services and purposes specified in column 2 of the Schedule.” This provision underscores the core intent of the Act: to empower the executive to draw funds for approved expenditures, thereby maintaining financial discipline and accountability. Without such an Appropriation Act, the government would lack the legal authority to spend public money, highlighting its critical role in the annual financial cycle.

Keywords: Appropriation Act, Consolidated Fund of India, Government Expenditure, Financial Year 2024-25, Parliamentary Sanction, Budgetary Allocation, Union Government, Public Finance, Ministry of Finance, Legislative Department

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