Difference Between Finance Bill and Money Bill for UPSC Exam
The difference between Finance Bill and Money Bill is that the latter is part of the former. Read on to learn the key difference between Finance Bill and Money Bill.
Deeksha Dixit20 Jun, 2024
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Difference Between Finance Bill and Money Bill: In the Indian Parliament, a bill is introduced either as a proposal for a new law or to change an existing law. Among these bills, certain deal with financial matters, such as the Finance Bill and the Money Bill. The main difference between these bills is that all money bills are finance bills, not vice versa .
Only those that specifically cover matters detailed in Article 110 can be called the Money Bill. Other than these, there are several other differences between a finance bill and a money bill that must be known to all UPSC aspirants. The difference between Finance Bill and Money Bill is one of the key topics in the Indian Polity syllabus.Finance Bill and Money Bill UPSC 2024
The Union Budget of India includes the Finance Bill which deals with matters related to revenue or expenditure. There are three main types of Finance Bill: Finance Bill Category I, Finance Bill Category II, and the Money Bill. Each of these bills deals with specific provisions mentioned in the Constitution of India.Finance Bill (Article 117)
According to the Indian Constitution, financial bills, other than money bills, are covered under Article 117. This means category I and category II bills under Article 117 are generally referred to as the Finance Bill. A Finance Bill specifies the fiscal matters relating to the spending and revenue of the government as stated in the constitution. The two main categories of the Finance Bill under Article 117 of the Indian Constitution are:- Category I (Article 117(1)) : These are bills that contain provisions dealing with any of the matters mentioned in Article 110 and also contain other provisions . Like a Money Bill, these bills only originate in the Lok Sabha on the advice of the President. Their process is similar to that of any other ordinary bill in parliament.
- Category II (Article 117(3)): These bills involve expenditure from the Consolidated Fund of India but do not deal with any of the matters specified in Article 110. They also need the President's recommendation before being introduced. A unique feature is that neither House of Parliament can pass them without the President's prior request for consideration.
Money Bill (Article 110)
In simple terms, the Money Bill is a type of bill in the Indian Parliament that deals with financial matters such as taxation, government spending, and borrowing as per the provisions defined in Article 110 of the Constitution. All money bills are a type of Finance bill. Generally, Money bills deal with the imposition, abolition, remission, alteration, or regulation of any tax, the regulation of the borrowing of money, appropriation of money out of the Consolidated Fund of India , etc. The ultimate power to decide on the Money Bill lies with the Speaker of Lok Sabha , who certifies a bill as a Money Bill and has final authority regarding it.Difference Between Finance Bill and Money Bill
As stated above, all money bills are financial bills, but not all financial bills are money bills. Money Bills deal exclusively with matters listed in Article 110, while Finance Bills cover a broader range of financial issues and follow different approval processes in Parliament. Here are the key differences between Finance Bill and Money Bill:| Difference Between Finance Bill and Money Bill | ||
| Parameter | Finance Bill | Money Bill |
| Definition | A Finance Bill is a bill concerning national finances, including government expenditures and revenues. | A Money Bill is a bill that deals only with matters specified in Article 110 of the Constitution of India. |
| Constitutional Provision | Article 117 | Article 110 |
| Scope | Comprehensive, covering various aspects of government finances. | Narrow, strictly confined to matters listed in Article 110. |
| Introduction |
|
Only Lok Sabha by a Minister |
| Certification | Does not require certification by the Speaker of the Lok Sabha. | Must be certified by the Speaker of the Lok Sabha as a Money Bill. |
| Provisions | General financial proposals, amendments to existing financial laws, changes in financial regulations, etc. | New taxation laws, amendment of existing tax laws, regulation of government borrowing, appropriation of funds from the Consolidated Fund of India, etc. |
| Treated As | Ordinary Bill | Government bill |
| Rajya Sabha’s Role | Can suggest amendments that must be considered by Lok Sabha | Can only make recommendations that Lok Sabha may or may not accept. Must return the bill within 14 days; if not, it is deemed to be passed. |
| Joint Session | Has provision for a joint sitting of Lok Sabha and Rajya Sabha | No provision as the Rajya Sabha has a limited role. |
| President’s Role | Give or withhold assent or can return the bill | Give or withhold assent but cannot return the bill |
Difference Between Finance Bill and Money Bill Process
The processes of a finance bill and a money bill in India are distinct and governed by specific provisions in the Constitution. Here is the difference between Finance Bill and Money Bill process: Introduction and Passage: A finance bill can be introduced in either the Lok Sabha or the Rajya Sabha. The Rajya Sabha has the power to make changes and can send them back to the Lok Sabha for further consideration. On the other hand, a money bill is introduced only in the Lok Sabha. The Rajya Sabha cannot make any changes to a money bill, and it can be sent to the President for assent with or without accepting the recommendation of the upper house. President Veto Power: The President has the power to veto a Finance Bill, but if the Lok Sabha passes the bill again with a majority of at least two-thirds, it becomes a law despite the President's objections. The President cannot veto a Money Bill. If the President does not give assent to a Money Bill within 15 days, it becomes a law. Timeframe: A Finance Bill is typically introduced in the budget session of the Parliament, which usually starts in February and ends in May. The bill is then passed before the end of the budget session. A Money Bill is usually introduced in the budget session as well, but it can be introduced at any time during the session. Want to learn more about the Indian Parliament? Enroll in top courses by Physics Wallah to scale up your preparation!| UPSC Related Articles | ||
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Difference Between Finance Bill and Money Bill FAQs
What is the difference between a Financial bill and a Money bill?
A Finance Bill covers various financial matters, whereas a Money Bill deals exclusively with matters listed in Article 110, such as taxation and government borrowing.
What is the difference between a Finance bill and an Appropriation bill?
A Finance Bill involves the government’s revenues and expenditures, while an Appropriation Bill specifically authorizes the withdrawal of funds from the Consolidated Fund of India to meet expenses.
Can the Rajya Sabha reject a finance bill?
Rajya Sabha can reject or amend finance bill except money bill.
What are the different types of money bills?
There is only one type of Money Bill as defined under Article 110 of the Constitution.
Is there any joint sitting for the finance bill?
Yes, a Finance Bill may require a joint sitting of both Houses if there is a deadlock, unlike a Money Bill which does not allow for a joint sitting.
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