Money Bill in India

Article 110 of the Indian Constitution deals with the Money Bill in India. There are a limited number of ways in which a bill can be called a money bill. The provisions that allow a bill to be called a money bill in India are stated hereunder:

Provisions for Money Bill in India

1. The imposition, abolition, remission, alteration or regulation of any tax
2. The regulation of the borrowing of money by the Union government
3. The custody of the Consolidated Fund of India or the contingency fund of India, the payment of money into or the withdrawal of money from any such fund
4. The appropriation of money out of the Consolidated Fund of India
5. Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of any such expenditure
6. The receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money, or the audit of the accounts of the Union or of a state
7. Any matter incidental to any of the matters specified above

Article 110 of the Indian Constitution has also given the provisions that will not allow a bill to be called a money bill. The provisions are given hereunder:

Bill is not a Money Bill when it provides for

1. Imposition of fines or other pecuniary penalties
2. Demand or payment of fees for licenses or fees for services rendered
3. Imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes

Financial Bill – Article 117 of Indian Constitution

Financial Bills are in Articles 117 (1) and Article 117 (3.) While Money Bill is a type of the financial bill, not all financial bills are money bill. Financial bills can be classified into:

 1.Financial Bills (I)-Article 117 (1)

 2.Financial Bills (II)-Article 117 (3)

Facts about Financial Bills (I):

• It is characterized as a bill containing subjects not only under Article 110 (money bill) but also other financial matters.

• Its similarity with money bill:

• Its introduction in Lok Sabha only is similar to Money Bill

• Its introduction also on recommendation of President

• Difference from money bill:

• Rajya Sabha may reject or amend, unlike money bill

• President may summon a joint sitting in case of deadlock

• President may assent, withhold assent or return the bill for reconsideration.

Facts about Financial Bills (I):

• For the purposes of this Note, a Financial Bill is simply defined as a bill that consists of matters not only referred to in Article 110 (Money Bill) but also matters related to finances.

• A Financial Bill (I) has many commonalities with a Money Bill

• It can only be introduced in Lok Sabha, similar to a Money Bill

• It can only be introduced by [upon] the recommendation of the President

A Financial Bill (I) has many differences with a Money Bill

• Any Financial Bill (I) may be rejected, or amended by the Rajya Sabha which is not the case with a Money Bill

• There is also a provision for a joint sitting called by the President upon a deadlock

• The President can either assent to the Financial Bill (I), withhold assent, or return it for reconsideration

Facts about Financial Bills (II):

• For the purposes of this Note, a Financial Bill (II) is defined as the bill that consists solely of provisions for expenditure from the Consolidated Fund of India, but otherwise does not include any matter as a Money Bill (Article 110).

• It is treated like an ordinary bill for all purposes, unlike a Financial Bill (I)

• Special Feature: A Financial Bill (II) cannot be passed by either house of Parliament except by President’s recommendation on consideration

• It can be rejected or amended by either House of Parliament

• There is also a provision for a joint sitting called by the President upon a deadlock

• The President can either assent to the Financial Bill (II), withhold assent, or return it for reconsideration