Common terms

Animated Accordion

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Clause (1) of Article 202 of the Constitution of India reads as, “The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part referred to as the annual financial statement”. Thus Budget is the Annual Financial Statement laid before the House of State Legislature under Article 202 of the Constitution of India. It is a statement of the expected receipts and expected expenditure of the State, for each financial year, to be laid before the Legislative Assembly

Appropriation is assignment of funds by the Legislature to meet specified expenditure. As soon as the Demands for grants are passed by the Assembly, Appropriation Bill is introduced and passed. When approved by the Governor, this becomes the Appropriation Act, which is published in the Gazette. This is the legal authority to draw money from the Consolidated Fund.

Appropriation Accounts means accounts which relate to the expenditure brought to account during a financial year to the items specified in the Law made in accordance with the provisions of the Constitution of India for the appropriation of moneys out of the consolidated fund of the State.

Control of expenditure and appropriation control have the same objective ie, to ensure that there is no unauthorised excess over appropriation or un-surrendered saving at the close of the financial year. Appropriation control is executed to by Finance Department in the Secretariat, in three different ways; Transfer of appropriation from one unit to another (Re-appropriation) Obtaining Additional Appropriation (Additional Authorisation /Supplementary Grant) Withdrawal of excess appropriation (Resumption)