Parliament clears Bill to regularise 2022-23 excess expenditure from Consolidated Fund

Parliament on Thursday passed the Appropriation (No. 3) Bill, 2026, authorising the appropriation of money from the Consolidated Fund of India to regularise excess expenditure of Rs 54,067.46 crore incurred during the financial year ended March 31, 2023, beyond the amounts originally approved by Parliament. The excess expenditure relates to two heads — repayment of debt amounting to Rs 53,871.01 crore and Rs 196.45 crore in capital expenditure under the Ministry of Railways. The Bill, which had earlier been passed by the Lok Sabha, received the Rajya Sabha's approval on Thursday.

Finance Minister explains procedure

Replying to the discussion in the Rajya Sabha, Union Finance Minister Nirmala Sitharaman said bringing such legislation before Parliament is a routine constitutional requirement whenever excess expenditure needs approval.

She pointed out that similar appropriation Bills have been introduced in previous years as well. She cited approvals sought in 2022 for excess expenditure related to the 2019-20 Budget, in 2023 for the 2020-21 Budget, and in 2025 for the 2021-22 Budget. The Finance Minister said the current Bill follows the same process and seeks Parliament's approval for excess expenditure incurred during the 2022-23 financial year.

Government says 'fiscal impact limited'

Addressing concerns raised by members, Sitharaman said the excess expenditure had been properly accounted for and would not have a significant impact on the government's finances. "The fiscal implication is not severe," she said, adding that the necessary accounting adjustments had already been carried out. She explained that the excess expenditure had been identified and adjusted through the prescribed financial process before being brought before Parliament for approval.

Rejecting suggestions that excess grants were approved only for selected sectors, Sitharaman said the government seeks Parliament's approval irrespective of the department concerned, whether the expenditure relates to debt servicing, education, health or any other sector. She added that such cases are brought before Parliament only after scrutiny by the Public Accounts Committee and other prescribed processes, reiterating that the government follows the same constitutional procedure whenever excess expenditure is incurred.