Q. Consider the following statements with respect to the difference between appropriation bill and finance bill:
1. While the Finance Bill contains provisions on financial proposals of the government, an Appropriation Bill authorises the payments from the Consolidated Fund of India.
2. Unlike the Appropriation Bill, the amendments seeking to reject or reduce a tax can be moved in the case of finance bill.
3. Both the Appropriation and Finance bills are classified as money bills.
How many statements given above are correct?
Exp) Option c is the correct answer
Statement 1 is correct. An appropriation bill is introduced to provide for the appropriation, out of the Consolidated Fund of India. The Appropriation act authorises the payments from the consolidated Fund of India. The Finance Bill is introduced to give effect to the financial proposals of the Government of India for the following year. It is subjected to all the conditions applicable to a Money Bill.
Statement 2 is correct. Unlike the Appropriation Bill, the amendments seeking to reject or reduce a tax can be moved in the case of finance bill.
Statement 3 is correct. Both the appropriation and the finance bills are classified as money bills that do not require the explicit consent of Rajya Sabha. The Upper House only discusses the bill and returns them.
