Difference Between Money Bill and Finance Bill – Money Bill vs Finance Bill
By BYJU'S Exam Prep
Updated on: November 14th, 2023
The major difference between Money Bill and Finance Bill is that Money Bills are concerned with financial matters, while the Finance Bill forms a portion of the Union Budget. In the Indian legislature, for any bill to become an actor, it must be passed by both the Parliament- Lok Sabha and the Rajya Sabha. Money and Financial Bills are among the many essential proposals brought before the Parliament for discussion to be passed as statutes.
Difference Between Money Bill and Finance Bill PDF
A bill with various provisions related to financial matters is known as a financial bill. There are three types of financial bills in the parliament-Money bill, Finance bill category A, and Finance bill Category B. These are also known as Finance Bill 1 and Finance Bill 2. In this post, you will learn more about these two bills and the differences between Money Bill and Finance Bill.
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Difference Between Money Bill and Finance Bill
A finance bill is an ordinary bill, whereas a money bill is a Government bill. A finance bill involves joint sitting, whereas there is no joint sitting while passing money bills. Here are some of the fundamental difference between Money Bill and Finance Bill.
Money Bill vs Finance Bill
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Difference Between Money Bill and Finance Bill |
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Money Bill |
Finance Bill |
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A money bill solely deals with the matters prescribed in Article 110, clause 1 of the Constitution. |
A finance bill is a bill that is proposed in the Parliament and contains provisions relating to revenue and expenses. |
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A money bill can be introduced in the Lok Sabha only |
A finance bill of category 1 can be introduced in the Lok Sabha, and category B can be presented in either House of Parliament |
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A money bill is like a government bill |
A finance bill is a form of the ordinary bill |
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A money bill needs to have approval from the President of the Central Government. |
The recommendation of the President is mandatory in the case of the finance bill. |
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Money bills can be passed with or without the recommendation of the Rajya Sabha. |
The finance bill cannot be enacted without the recommendation of both the Lok Sabha and Rajya Sabha. |
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There is no provision regarding a joint sitting in case of money bills |
The finance bill has certain provisions concerning the joint sitting of the Lok Sabha and the Rajya Sabha |
Money Bill and Finance Bill
Money bills deal with financial issues such as taxation, government spending, etc., whereas the Finance Bill is a part of the Union Budget and contains important changes suggested by the Finance Minister to be made in the country’s taxation system.
The difference between the Finance Bill and the Money Bill is discussed here.
What is a Money Bill?
Money bills are the bills concerned with only the provisions dealing with all or any of the matters prescribed in Article 110 (1). It encompasses various matters relating to government borrowing, levying, abrogation/ regulation of taxes, the protection of the consolidated/contingency fund, appropriation of money from the consolidated fund of India, and so on.
What is a Financial Bill?
A financial bill is any bill that contains various matters relating to the revenue and expenditure of the country. It encompasses matters including the imposition of new taxes, government spending/ borrowings, revenues, etc. The Union Budget is enacted as a finance bill annually since it deals with these issues.
What are financial bill 1 and financial bill 2?
Financial Bill 1 deal with not only provisions of Article 110 but also other affairs of general legislation. Financial bill 2 deals with provisions on expenditure from the Consolidated Fund of India but is not included in Article 110.
- Financial Bill 1 is similar to a money bill as it can be presented only on the proposal of the President.
- Financial Bill 2 can be introduced in either Lok Sabha or Rajya Sabha.
Conclusion:
Key Difference Between Money Bill and Finance Bill
The key Difference Between Money Bill and Finance Bill is that a Money Bill has no provision for joint sitting, whereas, in Finance Bill, there are provisions for combined sittings of both houses of the Parliament. In Money Bill, the Rajya Sabha’s power is limited. Whereas in Financial Bill, both houses have equal powers.
