Financial Bills

Financial Bills

Financial bills are of three kinds: Money bills—Article 110; Financial bills (I)—Article 117 (1); Financial bills (II)—Article 117 (3). This classification implies that money bills are simply a species of financial bills. Hence, all money bills are financial bills but all financial bills are not money bills. 
 
  • A financial bill (I) is a bill that contains not only any or all the matters mentioned in Article 110, but also other matters of general legislation.
  • A financial bill (I) is similar to a money bill as (a) both of them can be introduced only in the Lok Sabha and not in the Rajya Sabha and (b) both of them can be introduced only on the recommendation of the president.
  • In all other respects, a financial bill (I) is governed by the same legislative procedure applicable to an ordinary bill. Hence, it can be either rejected or amended by the Rajya Sabha (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 case of a disagreement between the two Houses over such a bill, the president can summon a joint sitting of the two Houses to resolve the deadlock.
  • A financial bill (II) contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110.
  • It is treated as an ordinary bill and in all respects; it is governed by the same legislative procedure which is applicable to an ordinary bill. Hence, financial bill (II) can be introduced in either House of Parliament and recommendation of the President is not necessary for its introduction.
  • The only special feature of this bill is that it cannot be passed by either House of Parliament unless the President has recommended to that House the consideration of the bill.

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