Article 204 of Indian Constitution mandates that funds approved by the state legislature under Article 203 can only be withdrawn from the Consolidated Fund of the State through an Appropriation Bill. This bill includes all legislative grants and charged expenditures, and amendments to it cannot change the amount or purpose of any grant. It ensures that state spending is legally authorized and controlled by the legislature. Explore other important Constitutional Articles.

Article 204 of Indian Constitution Appropriation of Bills

1. As soon as may be after the grants under Article 203 have been made by the Assembly, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of the State of all moneys required to meet— 

1. the grants so made by the Assembly; and 
2. the expenditure charged on the Consolidated Fund of the State but not exceeding in any case the amount shown in the statement previously laid before the House or Houses.

1. No amendment shall be proposed to any such Bill in the House or either House of the Legislature of the State which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of the State, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final.
2. Subject to the provisions of articles 205 and 206, no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with the provisions of this article.

Note: “The information on Article 204 of Indian Constitution provided above has been sourced from the official website, i.e., Indian Code. While the content has been presented here for reference, no modifications have been made to the original laws and orders.”

Download Free Article 204 of Indian Constitution PDF

Article 204 of Indian Constitution specifies the financial process for state governments and ensures that funds can only be withdrawn from the Consolidated Fund through an Appropriation Bill. The Bill encompasses -

1. Expenditures approved by the legislature under Article 203
2. Expenditures directly charged to the Consolidated Fund

It also limits any changes that could modify the allocated amounts or their purpose, preserving the financial discipline set by the legislature.

Article 204 of Indian Constitution: Simplified Explanation

Article 204 of Indian Constitution under Part VI states that once the state legislature grants funds for government expenditures, an Appropriation Bill must be introduced to legally withdraw the necessary amount from the Consolidated Fund of the state. The Bill ensures that the allocated fund is used for its intended purpose. In addition, no modifications can be made to change the approved financial allocations or their designated usage.

Article 204 of Indian Constitution: Significance

Article 204 of Indian Constitution plays a key role in financial. It reinforces transparency and accountability in public financial management by requiring approval of legislature.

• Legislative Oversight: The provision ensures that government spending is within the restriction allocated by legislature.
• Financial Responsibility: It refrains undue expenditures by making legislative approval compulsory.
• Prevention of Arbitrary Changes: It restricts changes in approved grants and protects fiscal accountability.
• Checks and Balances: Bolster the financial regulation of the legislature over the executive branch.

Article 204 of Indian Constitution: Conclusion

Article 204 of Indian Constitution plays an important role in maintenance of fiscal discipline within a state and ensures that all expenditures are subject to legislative approval. By mandating the Appropriation Bill and limiting amendments that alter approved allocations, it upholds transparency and accountability in financial governance.