Appropriation bill

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An appropriation bill, also known as supply bill or spending bill, is a proposed law that authorizes the expenditure of government funds. It is a bill that sets money aside for specific spending.^[1] In some 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).^[2]