• A Finance Bill, also known as a Money Bill under Article 110 of the Indian Constitution, is a bill that is tabled in the Parliament each year to give effect to the government’s financial recommendations for the following fiscal year. A Finance Bill is primarily concerned with tax and levy changes. Once a year, during the presentation of the Budget, a Finance Bill is normally introduced. This means if the finance minister proposes some changes to income tax slabs during the budget speech, then that proposal will be introduced in the Parliament as a Finance Bill and will have to be passed by both the houses to come into effect.
• The Appropriation Bill, also known as a Money Bill or the Finance Bill, permits the government to take money from the Consolidated Fund of India to cover expenses that may arise during a fiscal year. After presenting the Union Budget to Parliament, the government introduces the Appropriation Bill. This is because the Budget includes intentions to spend money on social programmes to help people from all walks of life. The government needs funds to carry out these programmes, which it obtains from the Consolidated Fund of India. As per Article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament. The amount withdrawn is used to meet the current expenditure during the financial year.
• One of the most fundamental differences between the two bills is that the Appropriation Bill deals with the budget’s spending side, whilst the Finance Bill works with the budget’s income (or taxes and levies) side. 
• Another significant distinction between the two Bills is that in the Finance Law, the Houses of Parliament can seek adjustments to the amounts listed in the Bill (such as tax reductions or rejections), whereas in the Appropriation Bill, no amendments can be introduced or enacted. 

Procedure Followed for an Appropriation Bill

• The Appropriation Bill is introduced in the Lok Sabhaafter 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.
• Once it is passed by the Lok Sabha it is sent to the Rajya Sabha.
• Rajya Sabhahas the power to recommend any amendments in this Bill. However, it is the prerogative of the Lok Sabha to either accept or reject the recommendations made by the Rajya Sabha.
• After the bill receives assent from the president it becomes an Appropriation act.
• The unique feature of the Appropriation Bill is its automatic repeal clause, whereby the Act gets repealed by itself after it meets its statutory purpose.
• The government cannot withdraw money from the Consolidated Fund of India till the enactment of the appropriation bill.However, this takes time and the government needs money to carry on its normal activities. To meet the immediate expenses the Constitution has authorised the Lok Sabha to make any grant in advance for a part of the financial year. This provision is known as the

• Amendment:
• No amendment can be proposed to an Appropriation Bill which will have the effect of varying the amount or altering the destination of any grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of India, and the decision of theLok Sabha Speaker as to whether such an amendment is admissible is final.

Vote on account

• According to the Constitution, the government can only take money from the Consolidated Fund of India if it has been appropriated by legislation. During the budget process, an appropriation Bill is passed for this purpose. The appropriation Bill, on the other hand, may take some time to pass through Parliament and become law. Meanwhile, starting April 1, the government will need approval to spend even a single dime.
• A vote on account, as described by Article 116 of the Indian Constitution, is a grant in advance from the Consolidated Fund of India to the federal government to satisfy short-term expenditure demands, usually for a few months until the new financial year begins.
• In contrast to a full Budget, which is a detailed financial statement of expenditures and receipts that includes changes in taxes and government policies, a vote on account is only a temporary licence to spend money. Because it is not fair to deny the government the ability to construct its own Budget for the remainder of the year if it changes after elections, the administration prefers to seek a vote on account rather than submitting a full Budget.