The Parliament of India passed the Appropriation Bill 2026 on March 15, 2026, authorising the withdrawal of ₹53.5 lakh crore from the Consolidated Fund of India for the financial year 2025-26. Finance Minister Nirmala Sitharaman moved the Bill in the Lok Sabha, emphasising the government's commitment to fiscal discipline and capital expenditure-led growth.
The Appropriation Bill is a constitutional requirement under Article 114 of the Indian Constitution, which mandates that no money shall be withdrawn from the Consolidated Fund except under appropriation made by law. The Bill gives legal sanction to all expenditures proposed in the Union Budget, including charged expenditure and voted expenditure.
Key financial highlights of the Appropriation Bill 2026 include a record capital expenditure (capex) allocation of ₹12.20 lakh crore, representing a significant push for infrastructure development across sectors including roads, railways, defence, and urban development. The capex-to-GDP ratio is maintained at approximately 4.3%, signalling India's commitment to productive public investment.
The Finance Minister also highlighted the establishment of the ₹57,381 crore Economic Stabilisation Fund (ESF), designed to act as a fiscal buffer against global economic shocks, commodity price volatility, and external demand disruptions. The ESF will allow the government to maintain spending continuity during downturns without exceeding fiscal deficit targets.
The passage of the Appropriation Bill ensures constitutional compliance for the Union Budget and enables government departments to draw funds from the Consolidated Fund for the remainder of FY 2025-26.