## Appropriation Acts, 2021: Policy Analysis Report
**1. Executive Summary:**
This report analyzes two Appropriation Acts passed by the Lok Sabha on July 28, 2021: Appropriation No. 4 Act, 2021 and Appropriation No. 3 Act, 2021. Appropriation No. 4 Act authorizes payments and appropriations from the Consolidated Fund of India for the financial year 2021-22, totaling Rs. 187202,41,00,000. Appropriation No. 3 Act, 2021, retroactively authorizes the appropriation of Rs. 99610,31,00,900 from the Consolidated Fund of India to cover excess expenditure incurred during the financial year ended March 31, 2018. The report details the key provisions, target audiences, implementation aspects, and expected outcomes of these acts based solely on the provided text.
**2. Introduction:**
This report provides an informative analysis of Appropriation No. 4 Act, 2021 and Appropriation No. 3 Act, 2021, based on the official government publication. The analysis is limited to the information presented within the provided text.
**3. Policy Overview:**
* **Appropriation No. 4 Act, 2021:**
* **Core Objective:** To authorize payment and appropriation of further sums from the Consolidated Fund of India for the services of the financial year 2021-22.
* **Appropriation No. 3 Act, 2021:**
* **Core Objective:** To provide for the authorization of appropriation of moneys out of the Consolidated Fund of India to meet the amounts spent on certain services during the financial year ended on the 31st day of March, 2018, in excess of the amounts granted for those services and for that year.
**4. Background and Rationale:**
* **Appropriation No. 4 Act, 2021:** This act addresses the need for supplementary expenditure and grants by the Central Government for the financial year 2021-22 beyond what was initially budgeted.
* **Appropriation No. 3 Act, 2021:** This act addresses instances where actual expenditure exceeded the allocated budget for specific services during the financial year that ended on March 31, 2018. This likely occurred due to unforeseen circumstances or underestimation of required funding.
**5. Key Provisions / Changes:**
* **Appropriation No. 4 Act, 2021:**
* Authorizes the payment of Rs. 187202,41,00,000 from the Consolidated Fund of India.
* Specifies the services and purposes for which these funds are allocated, as detailed in the Schedule. Examples include:
* Atomic Energy (Capital): Rs. 600,00,00,000
* Ministry of AYUSH (Revenue): Rs. 2,00,000
* Department of Pharmaceuticals (Revenue): Rs. 1083,21,00,000
* Department of Pharmaceuticals (Capital): Rs. 139,00,00,000
* Transfers to States (Capital): Rs. 158999,99,00,000
* Department of Health and Family Welfare (Revenue): Rs. 15917,89,00,000
* The act states that the funds will be appropriated for the services and purposes outlined in the Schedule for the 2021-22 financial year.
* **Appropriation No. 3 Act, 2021:**
* Authorizes the appropriation of Rs. 99610,31,00,900 from the Consolidated Fund of India.
* Retroactively approves excess expenditure incurred during the financial year ended March 31, 2018.
* The excess expenditure is categorized by service, including:
* Defence Services (Revenue): Rs. 3391,93,47,444
* Capital Outlay on Defence Services (Capital): Rs. 3757,06,68,740
* Repayment of Debt (Capital): Rs. 92333,69,22,874
* Pensions (Revenue): Rs. 127,61,61,842
**6. Target Audience and Stakeholders:**
* **Appropriation No. 4 Act, 2021:** All ministries, departments, and agencies of the Central Government listed in the Schedule, as well as the general public who benefit from the services provided by these entities.
* **Appropriation No. 3 Act, 2021:** Primarily the departments and ministries that incurred the excess expenditure during the financial year 2017-2018, particularly the Ministry of Defence, along with entities involved in debt repayment and pension disbursement.
**7. Implementation Aspects (Inferred):**
* **Responsible agency/bodies:** The Controller General of Accounts and relevant ministries/departments are responsible for managing and disbursing funds as per the Schedule. The Ministry of Finance is likely overseeing the appropriation process.
* **Timelines or procedures:** Appropriation No. 4 Act is effective for the financial year 2021-22. Appropriation No. 3 Act retroactively addresses expenditure from the financial year 2017-2018. No specific timelines or procedures are detailed in the provided text beyond the general framework of appropriation acts.
* It can be inferred that the President recommends the introduction of appropriation bills in Lok Sabha.
**8. Expected Outcomes / Impact of Changes:**
* **Appropriation No. 4 Act, 2021:** Ensures the continued funding and operation of various government services and programs throughout the financial year 2021-22. It enables the government to meet its financial obligations and implement planned initiatives.
* **Appropriation No. 3 Act, 2021:** Formalizes the government's accounting for excess expenditure incurred in 2017-2018, bringing closure to the financial records for that period. It also provides legal cover for the expenditure already undertaken.
**9. Conclusion:**
The Appropriation Acts of 2021 serve as essential financial instruments for the Indian government. Appropriation No. 4 Act provides the necessary funding for ongoing government operations in the 2021-22 financial year. Appropriation No. 3 Act retrospectively validates past expenditure, ensuring accountability and transparency in government finances. These Acts play a crucial role in the allocation and utilization of public funds, thereby impacting various sectors and stakeholders across the nation.
Key Entities Referenced
Lok Sabha: The lower house of the Parliament of India, where the bills were introduced.
Consolidated Fund of India: A fund of the Government of India from which all expenditures are met.
Appropriation No. 4 Act, 2021: A bill to authorise payment and appropriation of certain further sums from and out of the Consolidated Fund of India for the services of the financial year 2021-22.
Parliament: Legislative body of the Republic of India
Atomic Energy: A department/sector receiving allocation from the Consolidated Fund of India.
Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy AYUSH: A ministry receiving allocation from the Consolidated Fund of India.
Department of Fertilizers: A department receiving allocation from the Consolidated Fund of India.
Department of Pharmaceuticals: A department receiving allocation from the Consolidated Fund of India.
Ministry of Civil Aviation: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Coal: A ministry receiving allocation from the Consolidated Fund of India.
Department of Commerce: A department receiving allocation from the Consolidated Fund of India.
Department of Food and Public Distribution: A department receiving allocation from the Consolidated Fund of India.
Ministry of Culture: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Defence Civil: A ministry receiving allocation from the Consolidated Fund of India.
Capital Outlay on Defence Services: A sector receiving allocation from the Consolidated Fund of India.
Department of School Education and Literacy: A department receiving allocation from the Consolidated Fund of India.
Department of Higher Education: A department receiving allocation from the Consolidated Fund of India.
Ministry of Environment, Forests and Climate Change: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of External Affairs: A ministry receiving allocation from the Consolidated Fund of India.
Department of Economic Affairs: A department receiving allocation from the Consolidated Fund of India.
Department of Financial Services: A department receiving allocation from the Consolidated Fund of India.
Direct Taxes: A sector receiving allocation from the Consolidated Fund of India.
Indirect Taxes: A sector receiving allocation from the Consolidated Fund of India.
Transfers to States: A sector receiving allocation from the Consolidated Fund of India.
Department of Animal Husbandry and Dairying: A department receiving allocation from the Consolidated Fund of India.
Ministry of Food Processing Industries: A ministry receiving allocation from the Consolidated Fund of India.
Department of Health and Family Welfare: A department receiving allocation from the Consolidated Fund of India.
Department of Health Research: A department receiving allocation from the Consolidated Fund of India.
Department of Heavy Industry: A department receiving allocation from the Consolidated Fund of India.
Police: A sector receiving allocation from the Consolidated Fund of India.
Ladakh: A region in India receiving allocation from the Consolidated Fund of India.
Lakshadweep: A region in India receiving allocation from the Consolidated Fund of India.
Ministry of Housing and Urban Affairs: A ministry receiving allocation from the Consolidated Fund of India.
Department of Water Resources, River Development and Ganga Rejuvenation: A department receiving allocation from the Consolidated Fund of India.
Law and Justice: A sector receiving allocation from the Consolidated Fund of India.
Ministry of Micro, Small and Medium Enterprises: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Minority Affairs: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Personnel, Public Grievances and Pensions: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Petroleum and Natural Gas: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Ports, Shipping and Waterways: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Railways: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Road Transport and Highways: A ministry receiving allocation from the Consolidated Fund of India.
Department of Rural Development: A department receiving allocation from the Consolidated Fund of India.
Department of Land Resources: A department receiving allocation from the Consolidated Fund of India.
Department of Science and Technology: A department receiving allocation from the Consolidated Fund of India.
Ministry of Skill Development and Entrepreneurship: A ministry receiving allocation from the Consolidated Fund of India.
Department of Social Justice and Empowerment: A department receiving allocation from the Consolidated Fund of India.
Department of Space: A department receiving allocation from the Consolidated Fund of India.
Ministry of Statistics and Programme Implementation: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Textiles: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Women and Child Development: A ministry receiving allocation from the Consolidated Fund of India.
Ministry of Youth Affairs and Sports: A ministry receiving allocation from the Consolidated Fund of India.
Constitution of India: The supreme law of India.
Nirmala Sitharaman: Minister of Finance who introduced the bill.
Appropriation No. 3 Act, 2021: A bill to provide for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet the amounts spent on certain services during the financial year ended on the 31st day of March, 2018, in excess of the amounts granted for those services and for that year.
Defence Services: A sector receiving allocation from the Consolidated Fund of India.
Repayment of Debt: A sector receiving allocation from the Consolidated Fund of India.
Pensions: A sector receiving allocation from the Consolidated Fund of India.
Utpal Kumar Singh: Secretary General
New Delhi: Capital of India
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LOK SABHA
————
The following Bills were introduced in Lok Sabha on 28th July, 2021:—
BILL NO. 103 OF 2021
A Bill to authorise payment and appropriation of certain further sums from and out of
the Consolidated Fund of India for the services of the financial year 2021-22.
BE it enacted by Parliament in the Seventy-second Year of the Republic of India
as follows:—
1. This Act may be called the Appropriation (No. 4) Act, 2021. Short title.
2. From and out of the Consolidated Fund of India there may be paid and applied Issue of
sums not exceeding those specified in column 3 of the Schedule amounting in the Rs.187202,41,00,000
out of the
aggregate to the sum of one lakh eighty-seven thousand two hundred two crore and
Consolidated
forty-one lakh rupees towards defraying the several charges which will come in course
Fund of India
of payment during the financial year 2021-22 in respect of the services specified in for the
column 2 of the Schedule. financial year
2021-22.
3. The sums authorised to be paid and applied from and out of the Consolidated Appropriation.
Fund of India by this Act shall be appropriated for the services and purposes expressed
in the Schedule in relation to the said year.2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
THE SCHEDULE
(See sections 2 and 3)
1 2 3
No. Services and purposes Sums not exceeding
of Voted by Charged on Total
Vote Parliament the
Consolidated
Fund
Rs. Rs. Rs.
3 Atomic Energy................................................................................................ Capital 600,00,00,000 .. 600,00,00,000
4 Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and
Homoeopathy (AYUSH)................................................................................ Revenue 2,00,000 .. 2,00,000
6 Department of Fertilizers................................................................................ Revenue 1,00,000 .. 1,00,000
7 Department of Pharmaceuticals...................................................................... Revenue 1083,21,00,000 .. 1083,21,00,000
Capital 139,00,00,000 .. 139,00,00,000
8 Ministry of Civil Aviation............................................................................. Revenue 178,24,00,000 .. 178,24,00,000
Capital 1872,00,00,000 .. 1872,00,00,000
9 Ministry of Coal.............................................................................................. Revenue 1,00,000 .. 1,00,000
10 Department of Commerce................................................................................. Revenue 4,00,000 50,00,000 54,00,000
Capital 1,00,000 .. 1,00,000
15 Department of Food and Public Distribution................................................ Revenue 1100,00,00,000 .. 1100,00,00,000
17 Ministry of Culture......................................................................................... Revenue 1,00,000 .. 1,00,000
Capital 1,00,000 .. 1,00,000
18 Ministry of Defence (Civil)............................................................................ Revenue .. 1,52,00,000 1,52,00,000
20 Capital Outlay on Defence Services............................................................... Capital 1,00,000 .. 1,00,000
24 Department of School Education and Literacy.............................................. Revenue 4,00,000 .. 4,00,000
25 Department of Higher Education................................................................... Revenue 3,00,000 .. 3,00,000
27 Ministry of Environment, Forests and Climate Change................................. Revenue 1,00,000 .. 1,00,000
28 Ministry of External Affairs............................................................................ Revenue 370,00,00,000 .. 370,00,00,000
29 Department of Economic Affairs..................................................................... Revenue 1,00,000 .. 1,00,000
Capital 2641,67,00,000 .. 2641,67,00,000
31 Department of Financial Services................................................................... Revenue 1750,00,00,000 .. 1750,00,00,000
34 Direct Taxes Capital 1,00,000 .. 1,00,000
35 Indirect Taxes.................................................................................................. Revenue 2,00,000 .. 2,00,000
40 Transfers to States........................................................................................... Revenue .. 1,00,000 1,00,000
Capital 158999,99,00,000 .. 158999,99,00,000
42 Department of Animal Husbandry and Dairying........................................... Revenue 3,00,000 .. 3,00,000
43 Ministry of Food Processing Industries........................................................ Revenue 1,00,000 .. 1,00,000
44 Department of Health and Family Welfare...................................................... Revenue 15917,89,00,000 .. 15917,89,00,000
Capital 545,66,00,000 .. 545,66,00,000
45 Department of Health Research...................................................................... Revenue 526,28,00,000 .. 526,28,00,000
46 Department of Heavy Industry....................................................................... Revenue 1,00,000 .. 1,00,000
Capital 110,05,00,000 .. 110,05,00,000
50 Police.............................................................................................................. Revenue 2,00,000 .. 2,00,000
Capital 1,00,000 .. 1,00,000
54 Ladakh............................................................................................................ Revenue 11,00,000 .. 11,00,000
55 Lakshadweep.................................................................................................. Revenue 1,00,000 .. 1,00,000
59 Ministry of Housing and Urban Affairs Capital 2,00,000 .. 2,00,000
61 Department of Water Resources, River Development and Ganga Rejuvenation. Revenue 50,00,00,000 .. 50,00,00,000
64 Law and Justice.............................................................................................. Revenue 23,25,00,000 .. 23,25,00,000
67 Ministry of Micro, Small and Medium Enterprises........................................ Revenue 2,00,000 .. 2,00,000
69 Ministry of Minority Affairs........................................................................... Revenue 1,00,000 .. 1,00,000
73 Ministry of Personnel, Public Grievances and Pensions............................. Revenue 2,00,000 .. 2,00,000
75 Ministry of Petroleum and Natural Gas......................................................... Revenue 1,00,000 .. 1,00,000
77 Ministry of Ports, Shipping and Waterways................................................. Revenue 1,00,000 .. 1,00,000
84 Ministry of Railways...................................................................................... Capital 1,00,000 .. 1,00,000
85 Ministry of Road Transport and Highways................................................... Capital 1,00,000 .. 1,00,000SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3
1 2 3
No. Services and purposes Sums not exceeding
of Voted by Charged on Total
Vote Parliament the
Consolidated
Fund
Rs. Rs. Rs.
86 Department of Rural Development................................................................. Revenue 2,00,000 .. 2,00,000
87 Department of Land Resources....................................................................... Revenue 1,00,000 .. 1,00,000
88 Department of Science and Technology.......................................................... Revenue 1,00,000 .. 1,00,000
91 Ministry of Skill Development and Entrepreneurship.................................. Revenue 1,00,000 .. 1,00,000
Capital 10,01,00,000 .. 10,01,00,000
92 Department of Social Justice and Empowerment............................................ Revenue 3,00,000 .. 3,00,000
94 Department of Space........................................................................................ Revenue 1,00,000 .. 1,00,000
Capital 1,00,000 .. 1,00,000
95 Ministry of Statistics and Programme Implementation.................................. Revenue 1172,50,00,000 .. 1172,50,00,000
97 Ministry of Textiles......................................................................................... Revenue 2,00,000 .. 2,00,000
Capital 66,21,00,000 .. 66,21,00,000
100 Ministry of Women and Child Development................................................. Revenue 2,00,000 .. 2,00,000
101 Ministry of Youth Affairs and Sports............................................................. Revenue 43,72,00,000 .. 43,72,00,000
Capital 1,00,000 .. 1,00,000
TOTA L : 187200,38,00,000 2,03,00,000 187202,41,00,0004 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
STATEMENT OF OBJECTS AND REASONS
This Bill is introduced in pursuance of article 114 (1) of the Constitution of India,
read with article 115 thereof, to provide for the appropriation out of the Consolidated
Fund of India of the moneys required to meet the supplementary expenditure charged
on the Consolidated Fund of India and the grants made by the Lok Sabha for expenditure
of the Central Government for the financial year 2021-22.
NIRMALA SITHARAMAN.
————
PRESIDENT’S RECOMMENDATION UNDER ARTICLE 117 OF
THE CONSTITUTION OF INDIA
————
[Letter No. 4(25)-B(SD)/2021, dated 19.7.2021 from Smt. Nirmala Sitharaman,
Minister of Finance to the Secretary-General, Lok Sabha]
The President, having been informed of the subject matter of the proposed Bill to
authorise payment and appropriation of certain further sums from and out of the Consolidated
Fund of India for the services of the financial year 2021-22, recommends under article 117(1)
and (3) of the Constitution, the introduction of the Appropriation (No. 4) Bill, 2021 in
Lok Sabha and also the consideration of the Bill.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 5
BILL NO. 102 OF 2021
A Bill to provide for the authorisation of appropriation of moneys out of the
Consolidated Fund of India to meet the amounts spent on certain services
during the financial year ended on the 31st day of March, 2018, in excess of
the amounts granted for those services and for that year.
BE it enacted by Parliament in the Seventy-second Year of the Republic of India
as follows:—
1. This Act may be called the Appropriation (No. 3) Act, 2021. Short title.
2. From and out of the Consolidated Fund of India, the sums specified in Issue of
column 3 of the Schedule, amounting in the aggregate to the sum of ninety-nine thousand Rs. 99610,31,00,900
out of the
six hundred ten crore thirty-one lakh and nine hundred rupees shall be deemed to have
Consolidated
been authorised to be paid and applied to meet the amounts spent for defraying the Fund of India
charges in respect of the services specified in column 2 of the Schedule during the to meet
certain excess
financial year ended on the 31st day of March, 2018, in excess of the amounts granted
expenditure for
for those services and for that year. the year ended
on the 31st
March, 2018.
3. The sums deemed to have been authorised to be paid and applied from and out Appropriation.
of the Consolidated Fund of India under this Act shall be deemed to have been
appropriated for the services and purposes expressed in the Schedule in relation to the
financial year ended on the 31st day of March, 2018.6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
THE SCHEDULE
(See sections 2 and 3)
1 2 3
No. Services and purposes Sums not exceeding
of Voted by Charged on Total
Vote Parliament the
Consolidated
Fund
Civil Ministries Rs. Rs. Rs.
20 Defence Services............................................................................................. Revenue 3391,93,47,444 ... 3391,93,47,444
21 Capital Outlay on Defence Services............................................................... Capital 3552,71,69,143 204,34,99,597 3757,06,68,740
38 Repayment of Debt.......................................................................................... Capital ... 92333,69,22,874 92333,69,22,874
39 Pensions......................................................................................................... Revenue 127,61,61,842 ... 127,61,61,842
TOTAL : 7072,26,78,429 92538,04,22,471 99610,31,00,900SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 7
STATEMENT OF OBJECTS AND REASONS
This Bill is introduced in pursuance of article 114 (1) of the Constitution of India,
read with article 115 thereof, to provide for the appropriation out of the Consolidated
Fund of India of the moneys required to meet the expenditure incurred in excess of the
grants made by the Lok Sabha for expenditure of the Central Government, for the financial
year ended 31st day of March, 2018.
NIRMALA SITHARAMAN.
PRESIDENT’S RECOMMENDATION UNDER ARTICLE 117 OF THE
CONSTITUTION OF INDIA
————
[Letter No. 7(1)-B(SD)/2020, dated 19.7.2021 from Smt. Nirmala Sitharaman,
Minister of Finance to the Secretary-General, Lok Sabha]
The President, having been informed of the subject matter of the proposed Bill to
provide for the authorisation of appropriation of moneys out of the Consolidated Fund of
India to meet the amounts spent on certain services during the financial year ended on the
31st day of March 2018, in excess of the amounts granted for the said services and for that
year recommended under clauses (1) and (3) of article 117 of the Constitution, read with
clause (2) of article 115 thereof, the introduction of the Appropriation (No. 3) Bill, 2021, in
Lok Sabha and also recommends to Lok Sabha the consideration of the Bill.
————
UTPAL KUMAR SINGH
Secretary General.
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