What is Money Bill:
It is listed under Article 110 (1) of the Constitution of India. Any bill is deemed to be money bill if it contains only provisions on all or any of the following:
- Imposition, abolition, remission, alteration or regulation of any tax
- Regulation of borrowing by the government
- Custody of the Consolidated Fund or Contingency Fund of India (payments and withdrawal)
- Appropriation of funds out of the Consolidated Fund of India
- Declaration of expenditure charged on the Consolidated Fund of India or in case the amount of any such expenditure is increased
- Receipt of money on account of the Consolidated Fund of India (CFI) 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 or
- Any matter incidental to any of the matters specified in the list above
A money bill can be introduced only in Lok Sabha on prior recommendations of the President.
Once a money bill is passed in Lok Sabha, it is sent to Rajya Sabha for consideration and it has to return the bill with or without recommendations to Lok Sabha in 14 days.
What is Finance Bill?
All the bills, dealing with the provisions of revenue and expenditure are listed as Finance Bills. It includes imposition of new taxes, alteration in the existing tax structure or continuance of the older one, beyond the term assented by the Parliament. A financial bill of category-II is one which although has provisions involving expenditure from Consolidated Fund of India but does not have anything mentioned in article 110.
Difference between Money Bill and Finance Bill:
Take a look at the difference between the Money bill and the Finance Bill:
| Money Bill | Financial Bill – I | Financial Bill – II |
| The recommendation of the President is required for this bill. | This bill requires the recommendation of the President. | To introduce this bill, recommendation of the President is not required. |
| Rajya Sabha has no power to amend or reject the Money Bill | Rajya Sabha is powerful enough to amend or reject Financial Bill – I | Rajya Sabha has the power to amend or reject Financial Bill – II |
| Speaker of Lok Sabha whether a bill is a money bill or not. | This Bill does not require any kind of approval from the Speaker for its classification | This Bill does not require any kind of approval from the Speaker |
| Money Bill can be introduced only in Lok Sabha | Financial Bill-I can be introduced only in Lok Sabha | Financial Bill-II can be introduced in Lok Sabha as well as Rajya Sabha |
| There is no provision for a joint sitting of Lok Sabha and Rajya Sabha to resolve issues in Money Bill. | The President can summon a joint sitting of both Lok Sabha and Rajya Sabha to resolve the deadlock on Financial Bill-I | The President can summon a joint sitting of both Lok Sabha and Rajya Sabha to resolve the deadlock on Financial Bill-II |
| Money Bill is listed in Article 110 of the Constitution | Finance Bill-I is detailed in Article 117(1) of the Constitution | Finance Bill-II is mentioned in Article 117(3) of the Constitution. |
| Money Bill only deals with provisions mentioned in Article 110 | Finance Bill-I talks about the provisions of Article 110 but also other matters of general legislation | Finance Bill-II lists the expenditure from the Consolidated Fund of India. It is however not included in Article 110. |
| Money Bill is a Government Bill | Finance Bill -I is an ordinary Bill | Finance Bill-II is an ordinary Bill |
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