Appropriation Bill

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).

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