Comparison between Money Bills and Financial Bills

i) While a Money Bill deals solely with matters specified in article 110(1) (a) to (g) of the Constitution or incidental matters, a Financial Bill does not exclusively deal with all or any of the matters specified in the said article that is to say it contains some other provisions also.

ii) Financial Bills of the first class, like Money Bills, can be introduced only in Lok Sabha on the recommendation of the President. However, other restrictions in regard to Money Bills do not apply to this category of Bills. Financial Bill under article 117(1) of the Constitution can be referred to a Joint Committee of the Houses.

iii) Financial Bills of the second class i.e. those under article 117 (3) of the Constitution can be introduced in either House of Parliament like any other ordinary Bill.

However, recommendation of the President is essential for consideration of these Bills by either House and unless such recommendation is received, neither House can pass the Bill. However, the Bill may be introduced without President’s recommendation, but in such a case its consideration cannot take place.