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Question

Q. The money from the Consolidated Fund of India can be withdrawn by which of the following?

A
Money bill
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B
Finance act
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C
Appropriation Act
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D
President’s ordinance
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Solution

The correct option is C Appropriation Act
Explanation:
  • The Appropriation Bill gives power to the government to withdraw funds from the Consolidated Fund of India for meeting the expenditure during the financial year.
  • As per article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament.
  • The Appropriation Bill is introduced in the Lok Sabha after discussions on Budget proposals and Voting on Demand for Grants.
  • The defeat of an Appropriation Bill in a parliamentary vote would lead to the resignation of a government or a general election.

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