Article 114

Article 114 of the Constitution of India lays down the constitutional procedure for appropriating funds from the Consolidated Fund of India. It ensures that no money is withdrawn from the Fund except with the explicit authorisation of Parliament, thereby establishing parliamentary supremacy over government expenditure. This article is central to India’s budgetary and fiscal accountability framework, forming a vital link between the approval of grants and the actual withdrawal of funds for public expenditure.

Constitutional Context and Purpose

Article 114 operates in continuation of the financial provisions established under Articles 112 and 113. Once the Annual Financial Statement (Union Budget) has been presented under Article 112 and the Demands for Grants have been voted upon in the Lok Sabha under Article 113, Article 114 provides the legal mechanism for implementation of these financial decisions.
The Appropriation Bill, introduced under this Article, authorises the withdrawal of money from the Consolidated Fund of India to meet both charged and votable expenditures approved by Parliament. This ensures that the executive cannot spend public money without legislative sanction.

Clause (1): Introduction of the Appropriation Bill

According to Article 114(1), once the House of the People (Lok Sabha) has approved all grants under Article 113, an Appropriation Bill is introduced to give effect to this decision.
The Bill provides for the appropriation of funds from the Consolidated Fund of India for the following two purposes:

1. Grants made by the Lok Sabha — representing expenditures that have been approved by a vote.
2. Expenditures charged on the Consolidated Fund — such as the salaries, allowances, and pensions of constitutional authorities, debt obligations, and other statutory payments, which do not require a vote but are nevertheless included in the Appropriation Bill.

The introduction of this Bill marks the transition from budgetary approval to legal authorisation, signifying the formal consent of Parliament to government expenditure.

Clause (2): Restrictions on Amendments

Article 114(2) imposes strict limitations on the power of Parliament to amend the Appropriation Bill, ensuring that the financial intentions of the government and the legislative sanction remain consistent. No amendment can be made that:

• Changes the amount or purpose of any grant previously voted by the Lok Sabha.
• Alters the amount of expenditure charged on the Consolidated Fund of India.

The decision of the presiding officer of the House regarding the admissibility of amendments is final. This provision maintains the integrity of the budgetary process by preventing any modification that could undermine parliamentary control or fiscal discipline.

Clause (3): Conditions for Withdrawal of Money

Under Article 114(3), no money can be withdrawn from the Consolidated Fund of India except under appropriation made by law, that is, through an Appropriation Act passed in accordance with the provisions of Article 114.
This clause establishes a constitutional safeguard against unauthorised expenditure by the executive. It ensures that:

• Every withdrawal from the Fund has the backing of parliamentary approval.
• Public funds are expended only for purposes specified in the Appropriation Act.
• The principle of legislative supremacy over financial matters is upheld.

The clause also recognises exceptions provided under Articles 115 and 116, which allow for supplementary, additional, excess, or exceptional grants when unforeseen expenditure arises during the financial year.

Related Constitutional Provisions

Article 114 functions as part of the constitutional sequence of financial control provisions:

• Article 113: Regulates the procedure for voting on demands for grants by the Lok Sabha.
• Article 115: Provides for supplementary, additional, or excess grants, to regularise unanticipated spending.
• Article 116: Deals with Votes on Account, Votes of Credit, and Exceptional Grants, allowing temporary or urgent expenditure before the passage of the Appropriation Bill.

Together, these articles ensure that the entire process of public spending — from estimation and authorisation to appropriation and auditing — remains under parliamentary oversight.

Legislative Process of Appropriation Bills

The legislative process under Article 114 follows a structured and constitutionally regulated sequence:

1. Voting on Demands for Grants: The Lok Sabha votes on individual demands as per Article 113.
2. Introduction of the Appropriation Bill: Once the grants are approved, the Finance Minister introduces the Appropriation Bill in the Lok Sabha.
3. Consideration and Passage: The Bill is discussed and passed by both Houses of Parliament. However, the Rajya Sabha cannot amend or reject it — it can only make recommendations.
4. Presidential Assent: After passage, the Bill is sent to the President for assent under Article 111, upon which it becomes the Appropriation Act.
5. Withdrawal of Funds: Only after the enactment of the Appropriation Act can the government withdraw money from the Consolidated Fund for the purposes approved.

This meticulous procedure ensures legal compliance and fiscal discipline in the use of public resources.

Judicial Interpretations and Case Laws

Although Article 114 has not been the direct subject of extensive judicial scrutiny, its principles have been discussed in landmark cases concerning the constitutional control of finances:

• Keshavananda Bharati v. State of Kerala (1973): The Supreme Court established the Basic Structure Doctrine, recognising parliamentary control over finances as an essential component of India’s constitutional framework.
• Minerva Mills Ltd. v. Union of India (1980): The Court reaffirmed that financial accountability and separation of powers are integral to the constitutional balance.
• State of West Bengal v. Union of India (1964): Addressed the scope of legislative and executive powers in financial matters, highlighting the central role of parliamentary approval.

These cases collectively affirm that financial control by Parliament through instruments such as the Appropriation Act forms part of the basic structure of the Constitution.

Significance of Article 114

Article 114 serves as a constitutional guarantee of financial propriety and democratic control over government expenditure. Its significance lies in the following aspects:

• It prevents unauthorised withdrawals from the Consolidated Fund, ensuring that every rupee spent is legally sanctioned.
• It upholds the principle of legislative supremacy, making Parliament the ultimate authority in matters of public expenditure.
• It strengthens executive accountability, as the government must justify and seek authorisation for all its spending.
• It reinforces transparency and fiscal discipline, thereby maintaining public trust in financial governance.

In essence, Article 114 operationalises the constitutional principle that “no taxation or expenditure shall take place without the authority of law.”

Practical Implications

In practical governance, the Appropriation Bill is indispensable for the functioning of the Union Government. It provides the legal foundation for expenditure on all government programmes, salaries, and administrative costs. Without the passage of an Appropriation Act, the executive cannot withdraw funds or implement budgetary proposals.

Constitutional and Democratic Importance

Article 114 encapsulates the spirit of parliamentary democracy and constitutional governance in fiscal matters. It transforms the budgetary approvals of the legislature into binding legal authorisations, thereby ensuring that government expenditure remains within the bounds of law.