In Brief: Money Bill , Finance Bill , It’s comparison and Authority over Bills

Headline : Finance Bill, 2017 certified as Money Bill by Speaker, court can’t interfere: Centre to SC

Details :

News Summary

  • A batch of petitions were filed in the Supreme Court challenging that the passing of Finance Act, 2017 as a Money Bill was a “colourable exercise of power and a fraud on the Constitution.”
  • Arguments given by Attorney General of India in center’s defense:
    • The decision of Speaker to categorise a Bill as money bill is beyond the scope of judicial review.
    • This aspect is consistent with the broad parameters of separation of powers given in the Constitution.
    • Article 122 of the Constitution, states that the conduct of business and Proceedings of the parliament cannot be questioned before the Court of Law.
  • However, the hearing remained inconclusive and would continue on April 2.

Note: The Supreme Court had also sought centre’s view on bringing all the tribunals under one central umbrella body for ensuring “efficient functioning” and “streamlining the working” of quasi-judicial bodies.


Difference between Money Bill and Finance Bill

Money Bill:

  • Article 110 of Constitution of India deals with Definition of Money Bill.
  • A Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government, expenditure from or receipt to the Consolidated Fund of India.
  • Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills

Finance Bill:

  • A Bill that contains some provisions related to taxation and expenditure, and additionally contains provisions related to any other matter is called a Financial Bill.
  • Therefore, if a Bill merely involves expenditure by the government, and addresses other issues, it will be a financial bill.


Who decides if a Bill is a Money Bill?

  • The Speaker certifies a Bill as a Money Bill, and the Speaker’s decision is final.
  • Also, the Constitution states that parliamentary proceedings as well as officers responsible for the conduct of business (such as the Speaker) may not be questioned by any Court.



for Comparison

Money Bill Finance Bill
Introduction Lok Sabha only Category A bills (provisions of Article 110 (1) of the Constitution of India) are introduced in Lok Sabha while Category B (expenditure from Consolidated Fund of India) bills can be introduced in any of the two houses.
Power of Rajya Sabha The power of Rajya Sabha is restricted. Both Lok Sabha and Rajya Sabha has equal powers.
Joint Sitting No provision of joint sitting Provisions are there regarding joint sitting of Lok Sabha and Rajya Sabha.


Note: Every money bill is a finance bill until and unless it is specified by the Speaker of the Lok Sabha as the money bill. Further, every finance bill is not the money bill.


Section : Polity & Governance