Financial Bills


Financial bills are those bills that deal with fiscal matters, that is, revenue or expenditure.

Financial bills are of three kinds:

[1] Money bills—Article 110

[2] Financial bills (I)—Article 117 (1)

[3] Financial bills (II)—Article 117 (3)

 

Financial Bills (I)—

A financial bill (I) is a bill that contains not only any or all the matters mentioned in Article 110, but also other matters of general legislation.

In two respects, a financial bill (I) is similar to a money bill –(a) both of them can be introduced only in the Lok Sabha and not in the Rajya Sabha, and (b) both of them can be introduced only on the recommendation of the president.

In all other respects, a financial bill (I) is governed by the same legislative procedure applicable to an ordinary bill.

Hence, it can be either rejected or amended by the Rajya Sabha.

In case of a disagreement between the two Houses over such a bill, the president can summon a joint sitting of the two Houses to resolve the deadlock.

When the bill is presented to the President, he can either give his assent to the bill or withhold his assent to the bill or return the bill for reconsideration of the Houses.

 

Financial Bills (II)—

A financial bill (II) contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110.

It is treated as an ordinary bill and in all respects; it is governed by the same legislative procedure which is applicable to an ordinary bill.

Hence, financial bill (II) can be introduced in either House of Parliament and recommendation of the President is not necessary for its introduction.

It can be either rejected or amended by either House of Parliament.

In case of a disagreement between the two Houses over such a bill, the President can summon a joint sitting of the two Houses to resolve the deadlock.

When the bill is presented to the President, he can either give his assent to the bill or withhold his assent to the bill or return the bill for reconsideration of the Houses.