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Article 109: Process of Money Bill (Finance Bill)

• Money Bill must first be introduced in the Lok Sabha.
• Prior permission of the President is mandatory before introducing a Money Bill in the Lok Sabha.
• Only ministers can introduce a Money Bill.
• If a Money Bill is defeated in the Lok Sabha, the government must resign.
• When a Money Bill passed by the Lok Sabha is sent to the Rajya Sabha for approval, it must inform its decision within 14 days.
• If the Rajya Sabha does not inform any decision within 14 days on the Money Bill, it is considered to be approved and sent to the President for approval.
• If the Rajya Sabha wants to make any recommendations on the Money Bill, it should make recommendations within 14 days.
• The Lok Sabha may accept or reject the recommendations made by the Rajya Sabha, or may accept some points.
• Whether the Lok Sabha accepts or rejects the recommendations sent by the Rajya Sabha, or accepts some recommendations, the bill is sent to the President for approval.
• Lok Sabha has more powers on Money Bills.
• Powers of Rajya Sabha on Money Bills:
  1. Can discuss.
  2. Cannot approve.
  3. Can make recommendations.

Powers that Rajya Sabha does not have on Money Bills

• Power to reject.
• Power to make amendments.

When a Money Bill is sent to the President for approval, he may approve it or withhold it. But there is no opportunity to send it back for reconsideration.

The Lok Sabha Secretariat is responsible for the process of getting presidential assent after the Money Bill is passed in the House and sent for approval.

Note:

• According to Article 110(3), when a question arises whether a bill is a Money Bill or not, the Speaker of the Lok Sabha decides.
• Once the Speaker decides that a bill is a Money Bill, the Speaker's decision cannot be questioned by Parliament, courts, or the President, or anyone.
• When a Money Bill goes to the Rajya Sabha for approval, it should be sent with the approval of the Lok Sabha Speaker.

Article 110: Definition of Money Bill

1. Bills related to imposition, abolition, alteration of taxes.
2. Bills related to expenditure from the Consolidated Fund of India, bills related to deposits in the Consolidated Fund.
3. Bills related to deposits into or expenditure from the Contingency Fund of India.
4. Bills related to loans or repayment of loans.
5. Bills related to credits or expenditures to the Government of India account.

Note:

According to Article 110, penalties (fines), license fees, bills related to local bodies (local body taxes) are not considered as Money Bills.

Article 112: Annual Financial Statement (Budget)

• Prior permission of the President must be taken before introducing this bill.
• The word 'Budget' is not mentioned in the Constitution.
• Annual Financial Statement means a written statement of estimated income and expenditure of the government for a financial year, which is presented in the Parliament at the beginning of each financial year.

Article 116: Vote on Account, Vote on Credit

Vote on Account (Interim Budget)

• Every year a full-fledged annual financial statement is introduced.
• However, if in any case a full-fledged budget cannot be introduced, a budget for 2 months related to 1/6th of the budget is introduced.
• Later, when the full-fledged budget is introduced, this should be merged into that budget.

Vote on Credit

• In national emergency situations, for unforeseen expenditures for unexpected amounts, the government has not submitted detailed estimates.
• In these circumstances, even without full details, Parliament gives permission to the government to spend the necessary amount.

Article 117: Financial Bills

• Bills containing provisions related to government revenue and expenditure are called "Financial Bills".
• In the Constitution, the word 'Financial Bill' is used only in a technical sense.
• Financial Bills can be classified into 2 types:
  1. First type Financial Bill 117(1) Category A-Bill
  2. Second type Financial Bill 117(3) Category B-Bill
• All Money Bills are Financial Bills.
• All Financial Bills are not Money Bills.

Article 117(1): First Type Financial Bill

• According to this, items from A to F in Article 110 and other items are also included.

  Ex: Items related to borrowing loans by the Central Government.

• These types of Financial Bills must first be introduced in the Lok Sabha with the permission of the President.
• After being passed in the Lok Sabha, it becomes an ordinary bill when sent to the Rajya Sabha for approval (or) it should be considered as an ordinary bill.
• Through this, the Rajya Sabha has full powers on this bill. That is, the Rajya Sabha may approve this bill, or reject it, or make amendments.
• In the case of this bill, if there is no agreement between the two houses and a deadlock arises, the President may convene a joint sitting of both houses.

Article 117(3): Second Type Financial Bill

• Items not in Article 110 & ordinary bills are called second type financial bills.
• This bill can be introduced in either house of Parliament without the President's permission.
• Rajya Sabha has full powers on these types of bills.
• In the case of this bill, a joint sitting of both houses can be arranged if there is disagreement between the two houses.

Article 118: Procedure for conducting proceedings of the House

Regarding the procedure for conducting the proceedings of the House, both Houses have the power to make special rules.

Article 119: Procedures related to financial matters

...

Article 120: Language to be used in Parliament

• Parliamentary proceedings shall be conducted in Hindi or English.
• If anyone wants to speak in their mother tongue - they can speak with the permission of the Speaker.

Article 121: Discussion on Judges' conduct in Parliament prohibited

Conduct of Judges or conduct of courts should not be discussed in Parliament.

Article 122: Courts cannot inquire into Parliament's proceedings

Parliament's proceedings should not be discussed in courts.

Differences between Ordinary Bill and Money Bill

Ordinary Bill	Money Bill
1. Ordinary bills are related to non-financial matters of government administration.	1. Money bills are related to government financial matters.
2. These bills can be introduced in either house of Parliament.	2. These bills must be introduced only in the Lok Sabha.
3. This bill can be proposed by ministers or private members.	3. This bill should be proposed only by ministers.
4. Prior permission of the President is not required to introduce these bills.	4. Prior permission of the President is mandatory to introduce these bills.
5. Rajya Sabha can reject these bills, make amendments and send them back to Lok Sabha.	5. Rajya Sabha does not have the power to reject this bill. It can only make recommendations (discussion, approval).
6. The Rajya Sabha can delay the ordinary bill passed by the Lok Sabha for a maximum of 6 months without approving it.	6. The Rajya Sabha must inform its decision within a maximum of 14 days on the Money Bill passed by the Lok Sabha. Otherwise, it is considered approved and sent to the President for approval.
7. If there are different opinions on this bill, a joint sitting of both houses can be arranged.	7. There is no joint sitting of both houses if there are different opinions on this bill.
8. Speaker's certification is not required when this bill is sent to Rajya Sabha for approval after being passed by Lok Sabha.	8. "The Money Bill" is submitted to the Rajya Sabha for approval only with the Speaker's certification.
9. When this bill is sent to the President for approval, the President may approve it, reject it, keep it with him, or send it back for reconsideration.	9. The President may approve this bill or withhold it but there is no opportunity to send it back for reconsideration.

Differences between Public Bill and Private Bill

Public Bill	Private Bill
1. Public bills are related to the conduct of central government activities.	1. Bills introduced by members other than ministers to influence government policies are called private bills.
2. Public bills should be submitted to the Speaker 7 days in advance.	2. Members proposing private bills must give notice one month in advance.
3. Public bills usually get the support of a majority of members in the House.	3. Private bills may or may not be approved by a majority of members in the House.
4. In the case of public bills, the Council of Ministers has collective responsibility.	4. No such principle applies in the case of private bills.
5. Public bills are discussed at the level of officials and at the level of the Cabinet before being introduced.	5. There are no discussions in the case of private bills.
6. Public bills can be introduced by ministers in either house.	6. Private bills must be introduced only in the house of which the member is a member.
7. Public bills are associated with government prestige.	7. Private bills have no such prestige.
8. Public bills can be introduced on any day.	8. Private bills should be introduced only on Fridays.