Money Bill is defined in Article 110 of the Indian Constitution. Money bills are concerned with financial matters like taxation, public expenditure, etc. The bill is significant for Indian Polity and governance as many important issues like Aadhar Bill, Insolvency and Bankruptcy Bill are also related to it. Questions from this topic have time and again surfaced in the IAS Exam. The topic ‘Money Bill’ is important for all three stages of examination- Prelims, Mains and also Interview.
This article will mention the details of Money Bill in India, its definition and how it is different from Financial Bill (Article 117 (1) & Article 117 (3)). The information provided will be helpful for IAS aspirants for UPSC Political Science which is an important subject for prelims, mains GS-II and Polity optional.
What is a Money Bill in India?
In Indian Constitution, Article 110 deals with Money Bill in India. There are few provisions for a bill to be deemed as a money bill. The provisions that make a bill a money bill in India are given below:
| S.No | Provisions for Money Bill in India |
| 1 | The imposition, abolition, remission, alteration or regulation of any tax |
| 2 | The regulation of the borrowing of money by the Union government |
| 3 | The custody of the Consolidated Fund of India or the contingency fund of India, the payment of money into or the withdrawal of money from any such fund |
| 4 | The appropriation of money out of the Consolidated Fund of India |
| 5 | Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of any such expenditure |
| 6 | The receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money, or the audit of the accounts of the Union or of a state |
| 7 | Any matter incidental to any of the matters specified above |
There have been questions from this topic in UPSC Prelims before, and are expected in UPSC 2020 too. IAS aspirants should focus on facts related to money bill which will be given in the latter part of the article.
Article 110 of Indian Constitution also gives provisions following which a bill cannot be deemed as a money bill. Those provisions are given below:
| S.No | Bill is not a Money Bill when it provides for |
| 1 | Imposition of fines or other pecuniary penalties |
| 2 | Demand or payment of fees for licenses or fees for services rendered |
| 3 | Imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes |
Financial Bill – Article 117 of Indian Constitution
Financial Bills are dealt under articles 117 (1) and article 117 (3.) Though Money Bill is a species of financial bill however, not all financial bills are money bill. These bills are categorized as:
- Financial Bills (I)- Article 117 (1)
- Financial Bills (II)- Article 117 (3)
Facts about Financial Bills (I):
- It is defined as a bill that contains matters not only related with Article 110 (Money Bill) but also other matters of finances.
- Its similarity with money bill:
- It is introduced only in Lok Sabha similar to Money Bill
- It is introduced only on the recommendation of President
- Its difference with money bill:
- It can be either rejected or amended by the Rajya Sabha which is not the case with money bill
- There is a provision of joint sitting summoned by President in case of deadlock
- President can give his assent, withhold the bill or can even return the bill for reconsideration
Facts about Financial Bills (II):
- It is defined as bill that solely deals with provisions involving expenditure from Consolidated Fund of India and does not include any matter of money bill (Article 110.)
- It is treated as ordinary bill in all respects unlike Financial Bill (I)
- Special Feature: It cannot be passed by either houses of the Parliament unless President has recommended them for consideration of the bill
- It can be either rejected or amended by either House of Parliament
- There is a provision of joint sitting summoned by President in case of deadlock
- President can give his assent, withhold the bill or can even return the bill for reconsideration
These bills are important to understand as they form an important stage to know how a bill is passed in Indian Parliament. After knowing what money bill and finacial bill are, read below to know the difference between the two
Difference Between Money Bill & Financial Bill in India for UPSC
Till now we have understood that all money bills are financial bills but not all financial bills are money bills. To get more clarity, aspirants are advised to follow the table given below:
| Difference | Money Bill | Financial Bill |
| Article | Article 110 |
|
| Meaning | Exclusively deals with the financial matters prescribed under Article 110 | Deals with the provisions of revenue and expenditure |
| Form | Government Bill | Ordinary Bill |
| Introduced In | Lok Sabha Only | Bills under Article 117 (1) can be introduced in Lok Sabha only
Bills under Article 117 (3) can be introduced in both the houses.
|
| President’s Prior Approval | Required | Required |
| Speaker’s Certification | Yes | No |
| Rajya Sabha’s Role | No Role | Same role as that of Lok Sabha |
| Joint Sitting | No Provision | Yes, if any deadlock |
After President’s assent, these bills become the act and are published in the Indian Statute Book.
