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Money Bill, Meaning, Types, Article and Constitutional Provisions

Money Bill

The Money Bill used in India is distinct from other bills. It is involved with tax collection, public expense bills, and other significant costs associated with running the government. The Indian Constitution’s Article 110 provides a clear illustration of the money bill’s requirements. There are many different kinds of bills, including financial and appropriation bills. The Money Bill is an important part of Indian Polity which is an important subject in UPSC Syllabus. Students can also go for UPSC Mock Test to get more accuracy in their preparations.

Money Bill Article

A money bill is defined in Article 110 of the Constitution as “a proposed law containing primarily provisions dealing with all or any of the topics specified therein.” There are limited criteria for a bill to be classified as a money bill. Ex: Salary, Allowances and Pension of Members of Parliament (Amendment) Bill 2020, Appropriation Bill 2021, Aadhaar and other laws (Amendment) Bill, 2019, The High Court and the Supreme Court Judges (Salaries and Condition of service) Amendment Bill 2017.

Money Bill Constitutional Provisions

Any tax that is levied, removed, paid, changed, or monitored. It controls how the GOI borrows money. Money Bill regulations govern the deposit of funds into and withdrawals from the Consolidated Fund of India (CFI) and the Contingency Fund of India (CFI).

It functions to appropriate funds from the CFI. The provisions of the Money Bill apply to the declaration of any CFI-charged expenses or an increase in the amount of any such expenditure. The Provision of Money bill governs the receipt of monies on behalf of the CFI or the public account of India, their custody or disbursement, or the audit of those accounts.

Any matter that is related to any of the above-mentioned matters comes under the Money bill. Article 110 of the Indian Constitution also specifies when a bill cannot be considered a money bill. These provisions are as follows:

  • If a bill is used to impose fines or other monetary penalties, it is not referred to as a money bill.
  • Licensing fees or fees for rendered services are sought or paid.
  • Any tax levied, eliminated, paid, modified, or regulated by a local government or organisation for local goals.

Money Bill Types

Financial Bill

Each year, the Financial Bill, a bill that deals with financial issues including enacting new tax legislation, is introduced in the Lower House just after the general budget. It is introduced to Parliament along with the Annual Financial Statement.

Appropriation Bill

The Consolidated Fund may be allocated through this measure to the appropriate grants. This measure authorizes the spending and monies required to carry out grants that the House has approved.

Money Bill and Article 110

A money bill is defined as a draught submitted that principally comprises provisions that deal with all or any of the issues specified therein in Article 110 of the Indian Constitution. According to Article 110(3), the Speaker’s determination in any situation where there is a question as to whether a certain bill is a money bill or not is decisive.

When establishing whether a bill is a money bill, the speaker does not need to refer to anyone specifically. According to Article 110(4), the Speaker may acknowledge that a bill is a money bill when it is submitted to the Rajya Sabha and the President of India for his approval.

Differences Between Money Bill and Financial Bill

While Article 117 of the Indian Constitution governs money bills, Article 110 of the Constitution of India governs money bills. The table below provides a detailed explanation of the key aspects distinguishing money bills from money bills:

Money Bill

The Speaker has the authority to determine whether or not a specific bill is a money bill. Financial Bills are the fundamental type of all money bills. The Rajya Sabha is unable to reject financial bills. Furthermore, the Council of States is not required to follow the Rajya Sabha’s rules while passing a money bill. The President must either accept or reject a monetary measure. There cannot be a combined session of the two Houses of Parliament.

Financial Bill

The Money Bills are exempt from the Speaker’s approval. Money bills cannot be regarded as all financial bills. A Financial Bill may be amended or even discarded by the Rajya Sabha. Even worse, the President might suggest that the Financial Bill be reevaluated before being sent back to the House. The President may summon a combined session if there is a tie.

Money Bill Financial Bill Category-I Financial Bill Category-II
It is necessary to get the President’s prior recommendation. The President must have recommended it in advance. The President need not have recommended it in advance.
The Rajya Sabha’s ability to change or reject the Money Bill is constrained. The Financial Bill Category-I may be modified or rejected by Rajya Sabha. The Financial Bill Category-I may be modified or rejected by Rajya Sabha.
The Lok Sabha Speaker determines whether a financial bill qualifies as a money bill. The Speaker’s approval is not necessary.. There is no requirement for the Speaker’s approval.
It can only be brought up in Lok Sabha. It can only be brought up in Lok Sabha. Either the Lok Sabha or the Rajya Sabha can introduce it.
There is no provision for joint sitting. There is a joint sitting option available. There is a joint sitting option available.
The Constitution’s Article 110 to be dealt with. Handled in accordance with Constitutional Article 117(1). In accordance with Section 117(3) of the Constitution..
Only provisions of Article 110 are discussed. It also covers broad legal issues including the stipulations of Article 110. It contains provisions for Consolidated Fund of India expenditures.
It is a Government bill. It is an ordinary Bill. It is an ordinary Bill

Money Bill UPSC

The UPSC syllabus includes a significant section on the money bill. The Indian political system must be covered in the IAS Exam syllabus. Money bills only exist to stop the Rajya Sabha from overthrowing a government by denying it access to the exchequer for daily administration. It is disrespectful to exploit it to undercut the democratic function of the Upper House in enacting substantive legislation, which Ambedkar and the Constituent Assembly revered. Students can read all the details related to UPSC by visiting the official website of StudyIQ UPSC Online Coaching.

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Money Bill FAQs

Who decides bill is a Money Bill?

Speaker of Lok Sabha decides whether a bill is a money bill or not.

Who can decide money bill in India?

If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker thereon is final.

Is budget bill a Money Bill?

The finance bill is a part of the Union Budget which is introduced in the Lok Sabha on the same day when the Budget is presented.

Difference between financial bill and Money Bill?

The Finance Bill forms a part of the Union Budget, with details about all the legal amendments required for the changes in taxation proposed by the Finance Minister of the country. Money bills are concerned with financial matters like taxation, public expenditure, etc.

What is called Money Bill?

A Money Bill means a Public Bill which in the opinion of the Speaker of the House of Commons contains only provisions dealing with all or any of the following subjects, namely, the imposition, repeal, remission, alteration, or regulation of taxation

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