Procedure of Passing Money Bill in India

In this article we will discuss about Money Bill and Procedure of Passing Money Bill in India.

In India, there are four main types of bills in Parliament which are as follows:-

Ordinary Bill: Deals with any subject other than money matters. (Article 107)
Money Bill: Deals only with taxation or expenditure. (Article110)
Financial Bill: Broader than a Money Bill, involves financial matters but not exclusively. (Article 117)
Constitution Amendment Bill: Seeks to amend the Constitution. (Article 368)

A Money Bill in India is a special type of bill that deals only with matters related to money, like:

• Taxes
• Borrowing of money by the government
• Government spending (expenditure from the Consolidated Fund of India)
• Regulation of currency
• Audit of government accounts

The legal definition is given under Article 110 of the Indian Constitution. It defines that the money bill is a bill which contains only provisions with respect to all or any of the following:

1. Introduction in Lok Sabha

Money bill is always initiated in Lok Sabha and it is initiated with prior recommendation of the president of India.

2. Passing in Lok Sabha

The bill is debated and voted upon like any other bill. If passed by a simple majority, it proceeds to the Rajya Sabha.

Rajya Sabha can make recommendations (within 14 days) but can not amend or reject the bill, Lok Sabha may accept or reject the recommendations. If Rajya Sabha does not return the bill within 14 days, it is deemed to be passed by both houses in the form originally passed by Lok Sabha.

3. President’s Assent

The bill is sent to the President for assent. The President cannot return a Money Bill for reconsideration. Once the President gives assent, it becomes law.

To be noted, In the case of money bills there is no provision of joint sitting because Rajya Sabha’s role is advisory only, and Lok Sabha’s decision is final. Another reason is that Lok Sabha has overriding power in financial matters, reflecting the principle that the elected house, representing the people directly, should control the nation’s finances.