Appropriation Bill, also a Money Bill like the Finance Bill, is a bill that authorises the government to withdraw funds from the Consolidated Fund of India to meet the expenses that it could incur for a financial year.

The government tables the Appropriation Bill after it presents the Union Budget in the Parliament. This is because the Budget contains plans to spend on social programmes to uplift various sections of the society. In order to spend on these programmes, the government needs money and it takes the same from the Consolidated Fund of India.

The government cannot, without any prior notice, take money from the Consolidated Fund of India. Article 114 of the Constitution of India states that the government cannot withdraw any amount of money from the Consolidated Fund of India, prior to it being passed by the Parliament and the State Legislature, and also having received the President’s assent within a period of 75 days of its presentation.

Thus, only after the President gives his/her assent will the Appropriation Bill become the Appropriation Act.