Finance Minister Nirmala Sitharaman introduced the Appropriation (No. 3) Bill, 2026 in the Lok Sabha on August 4, 2026, seeking Parliament's approval for expenditure incurred by the Central Government in excess of the amounts originally sanctioned during the financial year ended March 31, 2023.
The Bill aims to authorise the appropriation of funds from the Consolidated Fund of India to meet expenditure on certain government services where actual spending exceeded the amounts approved by Parliament for FY 2022-23. Such excess expenditure requires subsequent legislative approval through the process of Demands for Excess Grants and an accompanying appropriation bill.
According to the legislative agenda of the Lok Sabha, the Bill was introduced following discussions on the Demands for Excess Grants for 2022-23. The proposed legislation is intended to regularize government spending that went beyond the originally voted allocations for that financial year.
The government has sought parliamentary authorization for excess expenditure amounting to more than Rs 54,000 crore, which was incurred on various services during FY 2022-23. Once passed, the Bill will legally authorize the withdrawal of the required amount from the Consolidated Fund of India to cover these excess expenditures.
What is an Appropriation Bill?
An Appropriation Bill is a financial legislation that authorizes the government to withdraw funds from the Consolidated Fund of India for specific purposes. In the case of the Appropriation (No. 3) Bill, 2026, the objective is not to approve fresh spending but to obtain Parliament's approval for expenditure already incurred in excess of the sanctioned budget during FY 2022-23.
The introduction of the Bill reflects the constitutional requirement that all government expenditure must ultimately receive parliamentary approval, ensuring transparency and accountability in public finances.
Key Highlights
- Finance Minister Nirmala Sitharaman introduced the Appropriation (No. 3) Bill, 2026 in the Lok Sabha.
- The Bill seeks authorization for excess expenditure incurred during FY 2022-23.
- Funds will be appropriated from the Consolidated Fund of India.
- The government has sought approval for excess spending of over Rs 54,000 crore.
- The Bill follows discussion on Demands for Excess Grants for 2022-23.
Also Read: CBDT Releases FAQs on Taxation and Other Laws (Amendment) Bill, 2026
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