There are mainly four types of Bills introduced in the Parliament which are discussed below; Out of these, Money Bill and Finance Bill are very important bills.
In this article, we will discuss Money Bill and Finance Bill in a simple and easy way, and understand the difference between these two, So to understand well, definitely read the article till the end as well as read other bills as well.
types of bills
Broadly there are four types of bills – Constitution Amendment Bill, Ordinary Bill, Money Bill and Finance Bill.
In this, the Constitution Amendment Bill is related to changing or amending the provision of the Constitution. Talking about ordinary bills, these are bills which are neither Constitution Amendment Bills nor Money and Finance Bills. That is, they are related to ordinary laws, although we are going to see further how Finance Bills also show the merits of ordinary bills.
Money bill and Finance bill
Talk about money bill or finance bill, both are related to money in some way or the other. However, due to some provisions, there is a difference between these two. Both of these are mentioned in separate articles in the constitution also. Money Bill is mentioned in Article 110 and Finance Bill in Article 117. All money bills are finance bills but all finance bills are not money bills.
Which type of bill will be considered as a money bill is defined in Article 110 of the Constitution. According to this article, a Bill shall be deemed to be a Money Bill if it contains one or more of the following provisions.
1. In that bill, there is imposition, cancellation, avoidance, alteration or regulation of any tax. It simply means that when there is a provision in a bill to levy, increase, reduce or abolish that tax, then it will be called a money bill.
2. If there is any provision in a Bill relating to the regulation of money borrowed by the Central Government or any financial obligations taken on it, then it will be called a Money Bill.
3. If any Bill contains provisions relating to the deposit or withdrawal of money from the Consolidated Fund or Contingency Fund of India, then …………..
4. A Bill relating to the appropriation of money from the Consolidated Fund of India. [The Consolidated Fund means the Treasury of India. And appropriation means an amount of money officially allocated for a particular use.]
5. A Bill relating to the proclamation of any expenditure charged on the Consolidated Fund of India or an increase in the amount of any such expenditure.
6. A Bill relating to the receipt or custody of any money in the Consolidated Fund of India or the Public Account. or the expenditure thereof or relating to the audit of the funds of the Central or the State.
[Public Account is also a fund like Consolidated Fund, but there are some differences in it, to know the funds must read this article. – Different types of funds]
7. Any subject ancillary to any of the subjects specified above. That is, even if there is any incidental subject of the above 6 provisions which have been read now, even then they will be considered as Money Bill.
What is not a money bill ?
A bill is not considered a money bill on the grounds of the following reasons :-
1. Imposition of fines or other monetary penalties
2. Demand for fees for licenses or fees for services rendered
3. Provision for the imposition, cancellation, avoidance, alteration or regulation of any tax by any local authority or body for local purposes.
Provisions relating to money bill
The Speaker of the Lok Sabha decides which bill is to be called a money bill and which bill is not, in this case the decision of the Speaker of the Lok Sabha is the final decision. Its decision cannot be challenged by any Court, Parliament or the President.
A Money Bill can be introduced in the Lok Sabha only on the recommendation of the President. Every such bill is considered as a government bill and can be introduced only by the minister.
After being passed in the Lok Sabha, it is sent to the Rajya Sabha for consideration. Rajya Sabha cannot reject or amend a money bill. It can only recommend. That too, it is not necessary for the Lok Sabha to accept the recommendations of the Rajya Sabha. Along with this, he has to approve it within 14 days, otherwise it is deemed to be passed by the Rajya Sabha.
Thus it can be seen that the power of Rajya Sabha is very limited in respect of Money Bills. On the other hand, in the case of ordinary bills, equal power has been given to both the houses.
Finally, when a Money Bill is presented to the President, he can either give his assent to it or withhold it but he cannot in any case send it back for reconsideration. This is because the President’s assent is taken before it is presented in the Lok Sabha if they assent, that means the President agrees with it.
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Generally, bills relating to financial matters relating to revenue or expenditure are called Finance Bills. In this bill, matters related to imposition of any new type of tax in the coming financial year or amendment in existing tax etc.
In other words, all the financial proposals of the government for the coming financial year are included in a bill. This bill is usually introduced in the Lok Sabha immediately after the presentation of the budget every year. On this all the conditions of money bill apply and amendments can be proposed in it.
Finance Bill can be divided into three parts :- Money Bill , Finance Bill (I) and Finance Bill (॥) .
All money bills are finance bills but all finance bills are not money bills. Only those Finance Bills are Money Bills, which are mentioned in Article 110. Secondly, which bill will be a money bill and which will not be decided by the Speaker of the Lok Sabha.
Finance Bill (I)
The Finance Bill (I) is discussed in Article 117(1). In the Finance Bill (I), the main 6 provisions which have been discussed under Article 110 (ie Money Bill), all that comes under Finance Bill (I) , as well as any other subject which is not mentioned in Article 110 also comes under this, such as any provision relating to a specific loan.
Since the Finance Bill (I) contains all the provisions of Article 110 (Money Bill), it needs to first get assent from the President. And after that it is presented in the Lok Sabha. But in all the cases other than the 6 cases mentioned in Article 110, in those cases the Finance Bill (I) becomes like an ordinary bill i.e. it no longer needs the prior assent of the President and now when it will go to the Rajya Sabha So Rajya Sabha can keep it on hold or can pass it if it wants.
If there is a deadlock between the two Houses in such a Bill, the President can call a joint sitting of both the Houses to end the deadlock. Whereas there is no provision for convening a joint sitting in the Money Bill.
When a bill is presented to the President after being passed by both the Houses, he can either give his assent to the bill or withhold it or return it to the House for reconsideration. Whereas in a money bill, the President cannot send it for reconsideration.
Finance Bill (॥)
Finance Bill (e) is discussed in Article 117(3). It is special in that it does not include any provision of Article 110. Then what does it involve?
According to Article 117(3), the Bill, when enacted and brought into force, has to cost money from the Consolidated Fund of India. But again remember that there is no such case which is mentioned in Article 110.
It is used like an ordinary bill and for this also the same procedure is followed as for an ordinary bill. That is, there is no compulsion to pass this bill first in the Lok Sabha, it can be introduced in whichever house it wants. And the Rajya Sabha can also amend, withhold or pass it.
Its second feature is that the approval of the President is not required to introduce the Finance Bill (॥) in the House. But it cannot be passed by either House of Parliament unless the President recommends to the House to do so.
If there is a deadlock between the two Houses in such a Bill, the President can call a joint sitting of both the Houses to end the deadlock.
When a bill is passed by both the houses and is presented to the President, he can either give his assent to the bill or withhold it or return it to the house for reconsideration.
So this was the money bill and finance bill, hope you have understood. Read other articles related to Parliament from below. Please share this article…