Para 3.2 — MSO (A&E)
Original Rule Text
3.2 No expenditure met from the Consolidated Fund of India or a State on or after 1st April of a financial year, under the provisions of Articles, 114 to 116 and 267 (1) or 204 to 206 and 267 (2) of the Constitution, will be protected by law unless authorised by an Appropriation Act passed in accordance with the provisions of Articles 114 and 204 ibid. All disbursements from the Consolidated Fund during a financial year, which are not authorised by the Annual Appropriation Act passed by the appropriate Legislature before the close of the year, will, therefore, be treated as unauthorised expenditure and such cases will be brought to the notice of Government for regularisation by Appropriation Act.
What This Means
Every expenditure from the Consolidated Fund after April 1 of a financial year must be authorized by an Appropriation Act. Any spending during the year that is not covered by the Annual Appropriation Act (or a Supplementary Appropriation Act) is treated as unauthorized expenditure. The AG must bring all such cases to the Government's attention so they can be regularized through a supplementary Appropriation Act.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All expenditure from the Consolidated Fund must be authorized by an Appropriation Act
- 2Authorization comes from Articles 114-116 and 267(1) for Central, 204-206 and 267(2) for States
- 3Spending not covered by the Appropriation Act is treated as unauthorized
- 4AG must report unauthorized expenditure to Government for regularization
- 5Regularization is done through a supplementary Appropriation Act
Practical Example
The Rural Development Department spends Rs 15 crore on a flood relief scheme that was not included in the Annual Appropriation Act. The AG flags this as unauthorized expenditure and reports it to the State Government. The Government must then get a supplementary demand passed by the Legislature and included in a supplementary Appropriation Act to regularize the spending.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if expenditure is not authorized by an Appropriation Act?▼
Can the Government spend first and get authorization later?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.