Money Bill vs Financial Bill
Why in news?
The Digital Personal Data Protection (DPDP) Bill which was earlier reported as a financial
bill, is now categorised as a normal bill by the Ministry of Parliamentary Affairs.
What is a financial bill?
Types of Financial Bill
Money Bill Article 110
Financial Bill I Article 117(1)
Finance Bill II Article 117(3)
Any Bill that relates to revenue or expenditure is a financial Bill.
A money Bill is also a specific type of financial Bill, which must deal only with matters
specified in Article 110.
It deals with taxes, regulation of the government’s borrowing of money, and
expenditure or receipt of money from the Consolidated Fund of India.
Procedure- Article 109 delineates the procedure for the passage of such a Bill and
confers an overriding authority on the Lok Sabha in the passage of Money Bills.
Role of Speaker- He takes the final call if a bill is a money bill or not. And his
decision cannot be challenged in any court of the country.
Examples- Money Bills and other financial Bills originating solely in the Lok
Sabha.
All money bills are financial bills, but not all financial bills are money bills.
Article 117 deals with financial bill more like normal bill.
President role- The major difference with normal bill is that it involve expenditure
from the Consolidated Fund of India and cannot be passed by either House unless the
President has recommended its consideration.
Prerequisites- The two conditions necessary for financial bill to become a money bill
is,
It must be introduced only in the Lok Sabha and not the Rajya Sabha.
It can be introduced only on the President’s recommendation.
What is the difference between money bill and financial bill?
Features Money Bill Financial Bill
Constitutional
Article 110 Article 117
Provision
Introduced either by a minister
Introduced by Introduced only by a minister
or by a private member
Requires prior recommendation
Approval of before introduction No prior recommendation of
President Exemption- Amendments related to the President is required
reduction or abolition of any tax
Finance I bills are introduced in
Lok Sabha while Finance II bills
Introduction Only in Lok Sabha
can be introduced in any of the
two houses
Rajya Sabha cannot amend or
reject, it should return the bill with
Rajya Sabha or without recommendations which Rajya Sabha can amend it
may be accepted or rejected by the
Lok Sabha
Can be detained by the Can be detained by the for a
Time period for
Rajya Sabha for a maximum period maximum
Rajya Sabha
of 14 days only. period of 6 months.
Speaker’s Requires the certification of Doesn’t require Speaker’s
endorsement Speaker certification
Has a provision for joint sitting
Joint sitting No provision for joint sitting
of Lok Sabha and Rajya Sabha
He/She can either give assent or He/She can give assent, return
President’s assent withhold it but cannot return the the bill or either withhold the
bill bill
What is the apex court’s view?
Finance Act 2017- In 2019, a Constitution Bench struck down amendments to the
2017 Finance Act, which was passed as a Money Bill, altering the structure and
functioning of various tribunals.
Aadhaar Act 2016- The Supreme Court held the constitutional validity of Aadhaar Act
as money bill.
References
1. Indian Express- Data Protection bill as normal bill
2. Live Mint- Money bill vs normal bill
