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Financial Bills

Financial bills are those bills that deal with fiscal matters, that is, revenue or expenditure. However, the Constitution uses the term 'financial bill’ in a technical sense. Financial bills are of three kinds:

1. Money bills-Article 110

2. Financial bills (I)-Article 117 (1)

3. Financial bills (II)-Article 117 (3)

This classification implies that money bills are simply a species of financial bills. Hence, all money bills are financial bills but all financial bills are not money bills. Only those financial bills are money bills which contain exclusively those matters which are mentioned in Article 110 of the Constitution. These are also certified by the Speaker of Lok Sabha as money bills. The financial bills (I) and (II), on the other hand, have been dealt with in Article 117 of the Constitution.


Table 22.4 Ordinary Bill vs Money Bill


Ordinary Bill

Money Bill

1. It can be introduced either in the Lok Sabha or the Rajya Sabha.

1. It can be introduced only in the Lok Sabha and not in the Rajya Sabha.

2. It can be introduced either by a minister or by a private member.

2. It can be introduced only by a minister.

3. It is introduced without the recommendation of the president.

3. It can be introduced only on the recommendation of the President.

4. It can be amended or rejected by the Rajya Sabha.

4. It cannot be amended or rejected by the Rajya Sabha. The Rajya Sabha should return the bill with or without recommendations, which may be accepted or rejected by the Lok Sabha.

5. It can be detained by the Rajya Sabha for a maximum period of six months.

5. It can be detained by the Rajya Sabha for a maximum period of 14 days only.

6. It does not require the certification of the Speaker

6. It requires the certification of the Speaker when

when transmitted to the

transmitted to the Rajya

Rajya Sabha (if it has

Sabha.

originated in the Lok


Sabha).


7. It is sent for the President’s

7. It is sent for the President’s

assent only after being

assent even if it is approved

approved by both the

by only Lok Sabha. There is

Houses. In case of a

no chance of any

deadlock due to

disagreement between the

disagreement between the

two Houses and hence,

two Houses, a joint sitting of

there is no provision of joint

both the houses can be

sitting of both the Houses in

summoned by the president

this regard.

to resolve the deadlock.


8. Its defeat in the Lok Sabha

8. Its defeat in the Lok Sabha

may lead to the resignation

leads to the resignation of

of the government (if it is

the government.

introduced by a minister).


9. It can be rejected,

9. It can be rejected or

approved, or returned for

approved but cannot be

reconsideration by the

returned for reconsideration

President.

by the President.