Appropriation bill
Encyclopedia
An appropriation bill or running bill is a legislative
motion (bill
) which authorizes the government
to spend money. It is a bill that sets money aside for specific spending. In most democracies, approval of the legislature is necessary for the government to spend money.
In a parliamentary system, the defeat of an appropriation bill in a parliamentary vote generally necessitates either a resignation of a government or the calling of a general election
. One of the more famous examples of the defeat of a supply bill occurred in Australia in 1975, when the Senate
, which was controlled by the opposition
, refused to approve a package of appropriation and loan bills, prompting Governor-General
Sir John Kerr to dismiss Prime Minister
Gough Whitlam
and appoint Malcolm Fraser
as caretaker Prime Minister until the next election
(where the Fraser government was elected).
system, the support of the Congress
for the President's appropriation
s requests is not necessary for the separately elected President to remain in office, but can severely limit the President's ability to govern effectively.
In the United States, two types of legislation are used to spend money. An authorization establishes a program that will later spend the money, but does not necessarily provide any funding. A mandatory program is one that does not need an additional piece of legislation known as an appropriation in order for spending to occur. The authority for spending to occur for the mandatory program is included in the authorization legislation. Social security
benefits are an example of a "mandatory" program.
An authorization bill
can create programs and make known Congress's intended level of spending for programs that also require an appropriation. What distinguishes a mandatory program from a discretionary program is that after Congress enacts a law creating a mandatory program, the program is permitted to spend funds until the program expires based on a provision in law, or until a subsequent law either terminates the program or reauthorizes it. "Discretionary" programs typically require annual appropriations legislation.
An appropriation bill is used to actually provide money to "discretionary" programs. Appropriations are generally done on an annual basis, although multi-year appropriations are occasionally passed. According to the United States Constitution
(Article I, Section 8, clause 12), army appropriations cannot be for more than two years at a time. An annual appropriation requires that the funds appropriated be obligated (spent) by the end of the fiscal year of the appropriation. Once the fiscal year ends, no more money can be spent via the prior year's appropriation. A new appropriation for the new fiscal year must be passed in order for continued spending to occur, or passage of a special appropriations bill known as a continuing resolution
, which generally permits continued spending for a short period of time—usually at prior year levels. The Anti-Deficiency Act
makes void any attempt to spend money for which there is no current appropriation.
According to the United States Constitution (Article I, Section 7, clause 1), all bills relating to revenue, generally tax bills, must originate in the House of Representatives
, consistent with the Westminster system
requiring all money bills to originate in the lower house
which is why the appropriations bills that are enacted begin with "H.R.", indicating a bill that originated in the House. The Constitution also states that the "Senate may propose or concur with Amendments as on other Bills," so in practice, the Senate and House each drafts and considers its own bill. The Senate then "cuts-and-pastes", substituting the language of its bill of a particular appropriations bill for the language of House bill, then agrees to the bill as amended.
is the formal name for the annual Act of Parliament
which gives legal effect to the Budget, that is, the Government's tax
ing and spending
policies for the forthcoming year (from 1 July to 30 June). Like other bills
, it is enacted, following debate, by the House of Representatives
, and assented to
by the Governor-General
. The main Appropriation Bill is traditionally placed before the House for its first reading in May amid considerable media
interest, an event known as the introduction of the Budget. An Appropriation Bill is not sent to a select committee, a lengthy process undergone by most bills during which they are scrutinised in detail by the committee, which also receives public submissions relating to the bill. Instead, an expedited process is followed in which the Appropriation Bill essentially goes directly to its second reading for consideration by the committee of the whole House
. Royal assent is granted after the formality of a third reading.
The main Appropriation Bill is formally called an "Appropriation (Estimates) Bill", or, after assented to, an "Appropriation (Estimates) Act". Supplementary Budgetary legislation in New Zealand includes an annual "Appropriation (Financial Review) Bill", which serves to validate taxation and spending incurred in the previous year which fell outside the previous year's Budget, and "Imprest Supply Bills," typically several in a year, which grant interim authority to the Government to tax and spend.
Both Appropriation and Imprest Supply bills fall under the rubric of confidence and supply
. A refusal by the House to pass such a Bill conventionally
leads to either the resignation of the Government (unlikely, since there is usually no alternative Government immediately available) or to a dissolution of the House and a subsequent general election
.
Legislature
A legislature is a kind of deliberative assembly with the power to pass, amend, and repeal laws. The law created by a legislature is called legislation or statutory law. In addition to enacting laws, legislatures usually have exclusive authority to raise or lower taxes and adopt the budget and...
motion (bill
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....
) which authorizes the government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
to spend money. It is a bill that sets money aside for specific spending. In most democracies, approval of the legislature is necessary for the government to spend money.
In a parliamentary system, the defeat of an appropriation bill in a parliamentary vote generally necessitates either a resignation of a government or the calling of a general election
General election
In a parliamentary political system, a general election is an election in which all or most members of a given political body are chosen. The term is usually used to refer to elections held for a nation's primary legislative body, as distinguished from by-elections and local elections.The term...
. One of the more famous examples of the defeat of a supply bill occurred in Australia in 1975, when the Senate
Australian Senate
The Senate is the upper house of the bicameral Parliament of Australia, the lower house being the House of Representatives. Senators are popularly elected under a system of proportional representation. Senators are elected for a term that is usually six years; after a double dissolution, however,...
, which was controlled by the opposition
Opposition (parliamentary)
Parliamentary opposition is a form of political opposition to a designated government, particularly in a Westminster-based parliamentary system. Note that this article uses the term government as it is used in Parliamentary systems, i.e. meaning the administration or the cabinet rather than the state...
, refused to approve a package of appropriation and loan bills, prompting Governor-General
Governor-General of Australia
The Governor-General of the Commonwealth of Australia is the representative in Australia at federal/national level of the Australian monarch . He or she exercises the supreme executive power of the Commonwealth...
Sir John Kerr to dismiss Prime Minister
Prime Minister of Australia
The Prime Minister of the Commonwealth of Australia is the highest minister of the Crown, leader of the Cabinet and Head of Her Majesty's Australian Government, holding office on commission from the Governor-General of Australia. The office of Prime Minister is, in practice, the most powerful...
Gough Whitlam
Gough Whitlam
Edward Gough Whitlam, AC, QC , known as Gough Whitlam , served as the 21st Prime Minister of Australia. Whitlam led the Australian Labor Party to power at the 1972 election and retained government at the 1974 election, before being dismissed by Governor-General Sir John Kerr at the climax of the...
and appoint Malcolm Fraser
Malcolm Fraser
John Malcolm Fraser AC, CH, GCL, PC is a former Australian Liberal Party politician who was the 22nd Prime Minister of Australia. He came to power in the 1975 election following the dismissal of the Whitlam Labor government, in which he played a key role...
as caretaker Prime Minister until the next election
Australian federal election, 1975
Federal elections were held in Australia on 13 December 1975. All 127 seats in the House of Representatives, and all 64 seats in the Senate were up for election following a double dissolution of both Houses....
(where the Fraser government was elected).
United States
Under the U.S. presidentialPresident of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
system, the support of the Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
for the President's appropriation
Appropriation (law)
In law and government, appropriation is the act of setting apart something for its application to a particular usage, to the exclusion of all other uses....
s requests is not necessary for the separately elected President to remain in office, but can severely limit the President's ability to govern effectively.
In the United States, two types of legislation are used to spend money. An authorization establishes a program that will later spend the money, but does not necessarily provide any funding. A mandatory program is one that does not need an additional piece of legislation known as an appropriation in order for spending to occur. The authority for spending to occur for the mandatory program is included in the authorization legislation. Social security
Social Security (United States)
In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
benefits are an example of a "mandatory" program.
An authorization bill
Authorization bill
In the United States Congress, an authorization bill is a proposed public law that permits the federal government to carry out various functions and programs...
can create programs and make known Congress's intended level of spending for programs that also require an appropriation. What distinguishes a mandatory program from a discretionary program is that after Congress enacts a law creating a mandatory program, the program is permitted to spend funds until the program expires based on a provision in law, or until a subsequent law either terminates the program or reauthorizes it. "Discretionary" programs typically require annual appropriations legislation.
An appropriation bill is used to actually provide money to "discretionary" programs. Appropriations are generally done on an annual basis, although multi-year appropriations are occasionally passed. According to the United States Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
(Article I, Section 8, clause 12), army appropriations cannot be for more than two years at a time. An annual appropriation requires that the funds appropriated be obligated (spent) by the end of the fiscal year of the appropriation. Once the fiscal year ends, no more money can be spent via the prior year's appropriation. A new appropriation for the new fiscal year must be passed in order for continued spending to occur, or passage of a special appropriations bill known as a continuing resolution
Continuing resolution
A continuing resolution is a type of appropriations legislation used by the United States Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the Congressional fiscal year...
, which generally permits continued spending for a short period of time—usually at prior year levels. The Anti-Deficiency Act
Anti-Deficiency Act
The Anti-Deficiency Act , , is legislation enacted by the United States Congress to prevent the incurring of obligations or the making of expenditures in excess of amounts available in appropriations or funds. It is now codified at...
makes void any attempt to spend money for which there is no current appropriation.
According to the United States Constitution (Article I, Section 7, clause 1), all bills relating to revenue, generally tax bills, must originate in the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
, consistent with the Westminster system
Westminster System
The Westminster system is a democratic parliamentary system of government modelled after the politics of the United Kingdom. This term comes from the Palace of Westminster, the seat of the Parliament of the United Kingdom....
requiring all money bills to originate in the lower house
Lower house
A lower house is one of two chambers of a bicameral legislature, the other chamber being the upper house.Despite its official position "below" the upper house, in many legislatures worldwide the lower house has come to wield more power...
which is why the appropriations bills that are enacted begin with "H.R.", indicating a bill that originated in the House. The Constitution also states that the "Senate may propose or concur with Amendments as on other Bills," so in practice, the Senate and House each drafts and considers its own bill. The Senate then "cuts-and-pastes", substituting the language of its bill of a particular appropriations bill for the language of House bill, then agrees to the bill as amended.
New Zealand
In New Zealand, an Appropriation BillAppropriation bill
An appropriation bill or running bill is a legislative motion which authorizes the government to spend money. It is a bill that sets money aside for specific spending...
is the formal name for the annual Act of Parliament
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
which gives legal effect to the Budget, that is, the Government's tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
ing and spending
Government spending
Government spending includes all government consumption, investment but excludes transfer payments made by a state. Government acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community is classed as government final...
policies for the forthcoming year (from 1 July to 30 June). Like other bills
Bill (proposed law)
A bill is a proposed law under consideration by a legislature. A bill does not become law until it is passed by the legislature and, in most cases, approved by the executive. Once a bill has been enacted into law, it is called an act or a statute....
, it is enacted, following debate, by the House of Representatives
New Zealand House of Representatives
The New Zealand House of Representatives is the sole chamber of the legislature of New Zealand. The House and the Queen of New Zealand form the New Zealand Parliament....
, and assented to
Royal Assent
The granting of royal assent refers to the method by which any constitutional monarch formally approves and promulgates an act of his or her nation's parliament, thus making it a law...
by the Governor-General
Governor-General of New Zealand
The Governor-General of New Zealand is the representative of the monarch of New Zealand . The Governor-General acts as the Queen's vice-regal representative in New Zealand and is often viewed as the de facto head of state....
. The main Appropriation Bill is traditionally placed before the House for its first reading in May amid considerable media
News media
The news media are those elements of the mass media that focus on delivering news to the general public or a target public.These include print media , broadcast news , and more recently the Internet .-Etymology:A medium is a carrier of something...
interest, an event known as the introduction of the Budget. An Appropriation Bill is not sent to a select committee, a lengthy process undergone by most bills during which they are scrutinised in detail by the committee, which also receives public submissions relating to the bill. Instead, an expedited process is followed in which the Appropriation Bill essentially goes directly to its second reading for consideration by the committee of the whole House
Committee of the Whole
A Committee of the Whole is a device in which a legislative body or other deliberative assembly is considered one large committee. All members of the legislative body are members of such a committee...
. Royal assent is granted after the formality of a third reading.
The main Appropriation Bill is formally called an "Appropriation (Estimates) Bill", or, after assented to, an "Appropriation (Estimates) Act". Supplementary Budgetary legislation in New Zealand includes an annual "Appropriation (Financial Review) Bill", which serves to validate taxation and spending incurred in the previous year which fell outside the previous year's Budget, and "Imprest Supply Bills," typically several in a year, which grant interim authority to the Government to tax and spend.
Both Appropriation and Imprest Supply bills fall under the rubric of confidence and supply
Confidence and supply
In a parliamentary democracy confidence and supply are required for a government to hold power. A confidence and supply agreement is an agreement that a minor party or independent member of parliament will support the government in motions of confidence and appropriation votes by voting in favour...
. A refusal by the House to pass such a Bill conventionally
Constitutional convention (political custom)
A constitutional convention is an informal and uncodified procedural agreement that is followed by the institutions of a state. In some states, notably those Commonwealth of Nations states that follow the Westminster system and whose political systems derive from British constitutional law, most...
leads to either the resignation of the Government (unlikely, since there is usually no alternative Government immediately available) or to a dissolution of the House and a subsequent general election
General election
In a parliamentary political system, a general election is an election in which all or most members of a given political body are chosen. The term is usually used to refer to elections held for a nation's primary legislative body, as distinguished from by-elections and local elections.The term...
.
See also
- Appropriation (law)Appropriation (law)In law and government, appropriation is the act of setting apart something for its application to a particular usage, to the exclusion of all other uses....
- Appropriation ActAppropriation ActAn Appropriation Act is an Act of Parliament passed by the United Kingdom Parliament which, like a Consolidated Fund Act, allows the Treasury to issue funds out of the Consolidated Fund...
- Money billMoney billIn the Westminster system , a money bill or supply bill is a bill that solely concerns taxation or government spending , as opposed to changes in public law.- Conventions :...
- Energy Policy Act of 2005Energy Policy Act of 2005The Energy Policy Act of 2005 is a bill passed by the United States Congress on July 29, 2005, and signed into law by President George W. Bush on August 8, 2005, at Sandia National Laboratories in Albuquerque, New Mexico...
- U.S. House Committee on AppropriationsUnited States House Committee on AppropriationsThe Committee on Appropriations is a committee of the United States House of Representatives. It is in charge of setting the specific expenditures of money by the government of the United States...
- U.S. Senate Committee on AppropriationsUnited States Senate Committee on AppropriationsThe United States Senate Committee on Appropriations is a standing committee of the United States Senate. It has jurisdiction over all discretionary spending legislation in the Senate....
- Confidence and supplyConfidence and supplyIn a parliamentary democracy confidence and supply are required for a government to hold power. A confidence and supply agreement is an agreement that a minor party or independent member of parliament will support the government in motions of confidence and appropriation votes by voting in favour...