Parliament, on 18 March 2026, passed the Appropriation Bill 2026, authorising the Union Government to withdraw Rs 53.5 lakh crore from the Consolidated Fund of India to meet expenditure on government services for the financial year 2025-26. The Bill was passed following the adoption of Demands for Grants through the guillotine procedure.
Background
Under Article 114 of the Constitution of India, no money may be withdrawn from the Consolidated Fund of India except under appropriation made by law. The Appropriation Bill is the legislative instrument that provides this authorisation. It is introduced in the Lok Sabha after the House votes on the Demands for Grants submitted by various ministries and departments under Article 113.
The guillotine procedure is a parliamentary device whereby outstanding Demands for Grants that have not been individually discussed and voted upon are put to vote collectively at a designated cut-off time. This procedure is commonly employed given the practical impossibility of debating every individual Demand within the allotted Budget session time.
Key Provisions
The Appropriation Bill 2026 contains the following operative elements:
Withdrawal authorisation: The Bill authorises the government to draw Rs 53.5 lakh crore from the Consolidated Fund of India for meeting the expenditure charged upon the Fund and the grants voted by the Lok Sabha for FY 2025-26.
Demands for Grants: The underlying Demands for Grants cover all ministries and departments of the Union Government. Those not individually debated were passed collectively through the guillotine procedure.
Constitutional mandate: As an Appropriation Bill under Article 114, it is classified as a Money Bill and follows the same legislative pathway — originating in the Lok Sabha with the Rajya Sabha limited to recommending amendments within fourteen days.
Expenditure scope: The authorised amount covers both revenue and capital expenditure across all government functions for the financial year.
Implications for Practitioners
The passage of the Appropriation Bill converts budgetary allocations into legally sanctioned expenditure authority. Government departments and ministries can now formally commence drawing upon their allotted funds for FY 2025-26 operations and capital programmes.
For practitioners advising public sector undertakings, government contractors, and entities dependent on government grants or subsidies, the passage of the Appropriation Bill provides the legal basis for fund disbursement. Contractual commitments contingent upon budgetary allocation can now proceed with the assurance of legislative authorisation.
The use of the guillotine procedure means that several departmental Demands for Grants were not individually scrutinised on the floor of the House. While this is a standard procedural approach, parliamentary oversight for those Demands rests primarily on the work of Departmentally Related Standing Committees rather than plenary debate. Legal advisors working on public finance matters should review the relevant Standing Committee reports for detailed analysis of specific allocations.