Appropriation bill

An appropriation bill or running bill or supply bill is a legislative motion (bill) that 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 Westminster parliamentary system, the defeat of an appropriation bill in a parliamentary vote generally necessitates either the resignation of a government or the calling of a general election. One of the more famous examples of the defeat of a supply bill was the 1975 Australian constitutional crisis, 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).

In New Zealand, an Appropriation Bill is the formal name for the annual act of Parliament which gives legal effect to the Budget, that is, the Government's taxing 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.

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