Difference between Money Bill and Finance Bill

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.

 

Basis

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

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s