Parliament Authorises Rs. 154.77 Lakh Crore Expenditure from Consolidated Fund for Financial Year 2025-26

The Parliament of India enacted The Appropriation (No. 3) Act, 2025, an Act of Parliament, which received the assent of the President on March 29, 2025, and was subsequently published for general information on the same date. This legislation serves to formally authorise the payment and appropriation of specific sums from the Consolidated Fund of India (the principal government account where all revenues are deposited and from which all expenditures are made) for the services required during the financial year 2025-26. The Act permits the withdrawal of an aggregate sum of one hundred fifty-four lakh seventy-seven thousand nine hundred fifty-nine crore and eight lakh rupees (Rs. 154,77,959,08,00,000) to meet the various charges that will arise during the specified financial year. These funds are allocated across numerous Ministries and Departments of the Union Government, as detailed in the comprehensive Schedule appended to the Act, covering both revenue and capital expenditures. 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 fifty-four lakh seventy-seven thousand nine hundred fifty-nine crore and eight lakh rupees towards defraying the several charges which will come in course of payment during the financial year 2025-26 in respect of the services and purposes specified in column 2 of the Schedule." Furthermore, the Act clarifies that any references to Ministries or Departments within the Schedule are to be understood as those existing immediately before September 6, 2021, and are to be construed as references to the appropriate Ministries or Departments as they may be constituted from time to time thereafter.

The legislative intent behind The Appropriation (No. 3) Act, 2025, is to provide the necessary legal sanction for the Union Government to incur expenditure for the upcoming financial year, 2025-26. This annual enactment is a fundamental constitutional requirement, ensuring that no money can be drawn from the Consolidated Fund of India without explicit parliamentary approval, thereby upholding principles of fiscal accountability and legislative control over public finances. The Act formalises the financial proposals presented in the Union Budget, converting them into legal authority for the executive branch to spend. It addresses the statutory necessity for parliamentary authorisation of government spending, a critical aspect of India's financial governance framework. The Act meticulously distinguishes between sums "voted by Parliament," which require explicit approval through a vote, and sums "charged on the Consolidated Fund," which are non-votable expenditures, such as the salaries and allowances of constitutional officeholders, that are automatically paid from the fund. The detailed Schedule outlines specific allocations for a wide array of government functions, including agriculture, defence, education, health, infrastructure, and social welfare, ensuring that each department has the legal mandate to utilise funds for its designated services and purposes during the financial year. This mechanism ensures that all government spending is transparent, authorised, and aligned with the budgetary provisions approved by the legislature.

Keywords: Appropriation Act, Consolidated Fund of India, Union Budget, Parliamentary approval, Government expenditure, Financial Year 2025-26, Public finance, Fiscal accountability, India Geo Tags: India District: Not Applicable