The Appropriation Bill is the legislative document that allows the government to take out the money from the public treasury and spend it for a specific purpose. This document has to be approved by the legislature preliminary.
The purposes that the funds could be applied for may vary. For instance, the defense ministry is obligated to finance the actions and campaigns of the military for the following year. In case the government’s revenue is lower than the amount issued in the appropriation bills, the government then goes into deficit.
The issuing of the Appropriation Bill is introduced after the Budget Proposals and the Voting on Demand for Grant has taken place. The monetary amount issued by the Appropriation bills should be voted for and decided upon beforehand.
The Appropriation bill is aimed to fund the government’s discretionary programs (the programs, which require the annual appropriation legislation). Sometimes a multi-year appropriation may occur. The money issued according to the Appropriation Bills must be spent till the end of the fiscal year.
Upon its end, no more money can be issued or spent on the grounds of the Appropriation Bill of the previous year. Each fiscal year requires a new Appropriation Bill to be issued. The Appropriation Bills are regulated by the United States House Committee on Appropriations and the United States Senate Committee on Appropriations.