Difference Between Money Bill And Financial Bill

The definition of money bills is dealt with in Article 110 of the Constitution. A bill is deemed to be a money bill if it contains "only" provisions dealing with all or any of the following:

 

Imposition, repeal, remission, modification, or regulation of any tax;

 

Regulations governing the Union government's borrowing of funds;

 

The payment of money into or the withdrawal of money from the Consolidated Fund of India or the contingency fund of India, as well as the custody of such funds;

appropriation of funds from the Indian Consolidated Fund;

 

Any expenditure charged to the Consolidated Fund of India, or any increase in the amount of any such expenditure;

 

Receiving money on account of the Consolidated Fund of India or the public account of India, or the custody or issue of such money, or auditing the Union's or a state's accounts; or any matter incidental to any of the above.

 

A bill is not to be considered a money bill simply because it contains the following provisions:

The levying of fines or other monetary penalties, or

 

Fees for licences or fees for services rendered are demanded or paid.

 

Any tax imposed, abolished, remitted, altered, or regulated by a local authority or body for local purposes.

 

or any of the preceding

If there is any doubt about whether a bill is a money bill or not, the Speaker of the Lok Sabha makes the final decision. In this case, his decision cannot be challenged in a court of law, in either House of Parliament, or even by the president. The Speaker endorses a money bill when it is sent to the Rajya Sabha for recommendation and then presented to the president for assent.

 

The Constitution establishes a special procedure for passing money bills in the House of Commons. A money bill can only be introduced in the Lok Sabha, and only on the president's recommendation. Every bill of this nature is considered a government bill, and it can only be introduced by a minister. A money bill is sent to the Rajya Sabha for consideration after it is passed by the Lok Sabha. In the case of a money bill, the Rajya Sabha has limited powers. A money bill cannot be rejected or amended. Its only capability is to make recommendations. It has 14 days to return the bill to the Lok Sabha, with or without recommendations. The Lok Sabha can accept or reject all or any of the Rajya Sabha's recommendations. If the Lok Sabha accepts any recommendation, the bill is considered to have been passed in its modified form by both Houses. If the Lok Sabha rejects any recommendation, the bill is deemed to have been passed by both Houses in the same form as it was originally passed by the Lok Sabha.

 

The bill is deemed to have been passed by both Houses in the form originally passed by the Lok Sabha if the Rajya Sabha does not return it to the Lok Sabha within 14 days. As a result, when it comes to a money bill, the Lok Sabha has more authority than the Rajya Sabha. In the case of a regular bill, however, both Houses have equal authority.

Finally, when a money bill is presented to the president, he has the option of giving his assent or withholding his assent, but he cannot return the bill to the Houses for reconsideration. A money bill is normally given the president's assent as soon as it is introduced in Parliament with his permission.

 

Bills dealing with financial matters, such as revenue or expenditure, are known as financial bills. However, in a technical sense, the term "financial bill" is used in the Constitution. There are three types of financial bills:

 

1. Money bills—Article 110

2. Financial bills (I)—Article 117 (1)

3. Financial bills (II)—Article 117 (3)

 

Money bills are simply a type of financial bill, according to this classification. As a result, all money bills are also financial bills, but not all financial bills are. Only money bills containing exclusively those matters mentioned in Article 110 of the Constitution are considered financial bills. The Speaker of the Lok Sabha has also certified these as money bills. Article 117 of the Constitution, on the other hand, deals with the financial bills (I) and (II).

 

A financial bill (I) is a bill that includes not only any or all of the items listed in Article 110, but also other general legislative items. A bill that includes a borrowing clause but does not solely deal with borrowing, for example. A financial bill (I) is similar to a money bill in two ways: (a) both can be introduced only in the Lok Sabha, not the Rajya Sabha, and (b) both can be introduced only on the president's recommendation. 

 

A financial bill (I) is subject to the same legislative procedure as an ordinary bill in all other respects. As a result, the Rajya Sabha has the option of rejecting it or amending it (except that an amendment other than for reduction or abolition of a tax cannot be moved in either House without the recommendation of the president). In the event that the two Houses cannot agree on a bill, the president can call a joint session of the two Houses to break the impasse. When the bill is presented to the President, he has the option of giving his assent, withholding his assent, or returning the bill to the Houses for reconsideration.

 

A financial bill (II) contains provisions involving expenditures from the Consolidated Fund of India, but none of the matters listed in Article 110. It is treated as an ordinary bill and is subject to the same legislative procedure as an ordinary bill. The only unique feature of this bill is that it can only be passed by one of the two Houses of Parliament if the President has recommended that the bill be considered by that House. 

 

As a result, the financial bill (II) can be introduced in either House of Parliament, and the President's approval is not required. Either House of Parliament has the power to reject or amend it. In the event that the two Houses disagree on a bill, the President can call a joint session of the two Houses to break the impasse. When the bill is presented to the President, he has the option of giving his assent, withholding his assent, or returning the bill to the Houses for reconsideration.