Article 204

Appropriation Bills in State Legislature

Official heading: “Appropriation Bills.”

Check this article against the official editionAwaiting human legal review

Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part VI, Article 204, printed page 93
Last human source-link check: Not yet checked
Last human legal review: Not yet reviewed

Open official PDF at this article Report a text or source error

AI-assisted source comparisons are noted with the citations below; the check date remains pending until a human confirms the link. The report link opens your email app; you choose whether to send it.

1. In One Sentence

Article 204 mandates the introduction of an Appropriation Bill following budget voting, establishing that no money shall be withdrawn from the Consolidated Fund of the State without statutory authority.

2. What It Means in Everyday Language

Article 204 embodies the fundamental constitutional principle of parliamentary financial control: "No taxation without representation, and no expenditure without legislation".

Following the voting of Demands for Grants under Article 203, a bill—known as the Appropriation Bill—must be introduced in the Legislative Assembly to authorize the withdrawal of funds from the Consolidated Fund of the State.

Clause (2) prohibits any amendment to an Appropriation Bill that would alter the amount or destination of any grant or vary any charged expenditure.

Clause (3) lays down the strict constitutional prohibition: no money shall be withdrawn from the Consolidated Fund of the State except under appropriation made by law passed in accordance with Article 204.

3. Practical Illustrative Example

Everyday Scenario:

A State government department wishes to immediately draw funds for a newly announced welfare scheme before the Appropriation Bill is enacted.

Core takeaway: Under Article 204(3), the State Treasury cannot release a single rupee from the Consolidated Fund without an enacted Appropriation Act (or Vote on Account under Article 206).

Illustrative Notice: Unauthorized withdrawals violate constitutional mandate and will be flagged as serious illegalities by the CAG under Article 151.

4. Important Limits, Qualifications & Exceptions

Article 204 provides the legal authorization required for executive expenditure in the State.

Enacts voting results and charged items into statutory law.
Bar on amendments altering grant amounts or destinations.
Absolute prohibition on executive fund withdrawals without statutory appropriation.
Enforced through Treasury controls and CAG audit scrutiny.

5. Operative Constitutional Text

(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— (a) the grants so made by the Assembly; and (b) 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. (2) 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. (3) 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.

Transcription for reference; compare with the linked official editionNot yet verified by a human legal reviewer

6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata

•
Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part VI, Article 204, printed page 93 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource