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 & GovernanceArticle 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:
Financial bills deal with fiscal matters, that is, revenue or expenditure.
Financial bills are of three kinds:
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. |