Q. What do you understand by money bill and how is it different from the financial bill? Examine the criteria a bill needs to fulfill to be termed as a money bill. (250 words)10 Sep, 2019 GS Paper 2 Polity & Governance
- Define Money Bill with constitutional provisions.
- Mention the criterion to designate a Bill as a Money Bill.
- Mention the differences between Money Bills and Financial Bills.
Article 110 of the Constitution deals with the Money Bills. It states that a bill is deemed to be a money bill if it contains ‘only’ provisions dealing with all or any of the following matters:
- The imposition, abolition, remission, alteration or regulation of any tax;
- The regulation of the borrowing of money by the Union government;
- The custody of the Consolidated Fund of India or the contingency fund of India, the payment of moneys into or the withdrawal of money from any such fund;
- The appropriation of money out of the Consolidated Fund of India;
- Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of any such expenditure;
- 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; or
- Any matter incidental to any of the matters specified above.
Financial bills deal with fiscal matters, that is, revenue or expenditure.
Financial bills are of three kinds:
- 1. Money bills—Article 110
- 2. Financial bills (I)—Article 117 (1)
- 3. Financial bills (II)—Article 117 (3)
However, only those financial bills are money bills which contain exclusively those matters which are mentioned in Article 110 of the constitution. Following are the key differences between Money Bills and Financial Bills.
Money Bills Financial Bills Financial Bill-I Financial Bill-II Article 110 deals with money bills. Article 117(1) deals with Finance Bill Article 117(3) deals with Finance Bills-II They deal with ‘only’ provisions mentioned in Article 110. They contain not only any or all the matters mentioned in Article 110, but also other matters of general legislation. They contain provisions involving expenditure from Consolidated Fund of India, but not included in Article 110. Speaker decides whether a bill is a money bill or not. Does not require certification of speaker. Does not require certification of speaker. They can be introduced only in Lok Sabha. They can be introduced only in Lok Sabha. They can be introduced in both houses. President’s recommendation is needed to introduce them. President’s recommendation is needed to introduce them. President’s recommendation not needed. It cannot be amended or rejected by the Rajya Sabha. It can be amended or rejected by the Rajya Sabha. It can be amended or rejected by the Rajya Sabha. President can either accept or reject a money bill but cannot return it for reconsideration. President can return it for reconsideration. President can return it for reconsideration. No provision for joint sitting of both the houses to resolve the deadlock. President can summon the joint sitting of the two houses. President can summon the joint sitting of the two houses.