Financial bills
- Definition: Financial bills address matters related to government revenue or expenditure.
- Categories:
- Money Bills (Article 110): Deal exclusively with provisions listed in Article 110, such as taxation, Consolidated Fund of India, and borrowing. They are certified as money bills by the Speaker of the Lok Sabha.
- Financial Bills (I) (Article 117(1)): Include matters from Article 110 but also contain other general legislative provisions.
- Financial Bills (II) (Article 117(3)): Relate to expenditure but do not include any Article 110 matters.
Key Point: All money bills are financial bills, but not all financial bills qualify as money bills. Only money bills meet the strict criteria set by Article 110.
Here’s a simplified and clear explanation of the different types of Financial Bills in Parliament, including easy examples and a comparison table — perfect for UPSC, teaching, or content creation:
💰 Financial Bills in India – Simplified Explanation
🔹 What are Financial Bills?
Financial Bills are bills that deal with money-related matters like:
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💵 Taxes
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🏛️ Government spending
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💰 Borrowing
-
🧾 Expenditure from government funds
But not all financial bills are the same. The Constitution divides them into 3 types:
📘 Types of Financial Bills
🧮 1. Money Bill (Article 110)
This is a special kind of financial bill that ONLY deals with specific money matters listed in Article 110.
🧾 Examples:
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Imposing or removing a tax
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Government borrowings
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Use of Consolidated Fund of India
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Receipt and custody of money in public accounts
🟢 Can be introduced only in: Lok Sabha
🟢 Needs President’s recommendation: ✅ Yes
🟢 Rajya Sabha’s power: Can only make suggestions, but Lok Sabha may ignore them
🟢 Speaker’s Role: Must certify it as a Money Bill
🟢 Joint Sitting: ❌ Not allowed
🧾 2. Financial Bill (Category I) – Article 117(1)
Contains:
-
💰 Money-related matters like in Article 110
+ -
📜 Other general matters (non-money)
💼 What is Financial Bill (I)?
📜 Article 117(1) of the Constitution
🔹 In Simple Words:
A Financial Bill (I) is a bill that:
✅ Includes money-related matters (like tax, borrowing, etc.)
➕
✅ Also includes general laws (not related to money)
So, it’s a mix of money and non-money topics.
📘 Kannada Meaning:
ಆರ್ಥಿಕ ಬಿಲ್ (I) ಅಂದರೆ ಹಣಕಾಸು ವಿಷಯಗಳ ಜೊತೆಗೆ ಸಾಮಾನ್ಯ ವಿಷಯಗಳನ್ನು ಒಳಗೊಂಡಿರುವ ಬಿಲ್
🧾 Example:
Let’s say the government brings a bill to:
"Set up a new Education Board AND take a ₹1,000 crore loan for it."
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Loan part = Related to Article 110 (money matter)
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Education Board part = General legislation
So, it’s not a pure Money Bill. It becomes a Financial Bill (I).
🧾 Example: A bill on borrowing plus rules for education policy.
🟢 Can be introduced only in: Lok Sabha
🟢 Needs President’s recommendation: ✅ Yes
🟢 Rajya Sabha’s power: Can reject or amend
🟢 Joint Sitting: ✅ Yes, allowed
🟢 Speaker’s Certification: ❌ Not needed
🟢 Amendments to reduce or remove tax: ✅ Allowed without President's permission
💼 3. Financial Bill (Category II) – Article 117(3)
These only involve expenditure from the Consolidated Fund of India, but do NOT include matters in Article 110.
🧾 Example: A bill saying, “₹10 crore will be used for setting up a sports university.”
🟢 Can be introduced in: Any House (Lok Sabha or Rajya Sabha)
🔵 Needs President’s recommendation for introduction? ❌ No
🔵 Needs President’s recommendation before passing? ✅ Yes
🟢 Rajya Sabha’s power: Can amend or reject
🟢 Joint Sitting: ✅ Allowed
🟢 Speaker’s Certification: ❌ Not required
🧾 Comparison Table:
| Feature | Money Bill | Financial Bill (I) | Financial Bill (II) |
|---|---|---|---|
| Article | 110 | 117(1) | 117(3) |
| Content | Only money matters | Money + general laws | Only expenditure |
| House of Introduction | Only Lok Sabha | Only Lok Sabha | Any House |
| President’s Recommendation | ✅ Yes | ✅ Yes | ✅ At consideration |
| Rajya Sabha Role | Advisory only | Can amend or reject | Can amend or reject |
| Speaker’s Certification Needed | ✅ Yes | ❌ No | ❌ No |
| Joint Sitting | ❌ No | ✅ Yes | ✅ Yes |