Difference Between Money Bill and Finance Bill

By : Neha Dhyani

Updated : May 13, 2022, 6:30

In the Indian legislature, for any bill to become an actor, it must be passed by both houses-Lok Sabha and the Rajya Sabha. Money bills and finance bills are among the many essential proposals brought before the Parliament for discussion to be passed as statutes. In this post, we learn more about these two bills, along with the key Difference Between Money Bill and Finance Bill.

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 the regulation of 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 Finance Bill?

A finance bill refers to 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 every year since it deals with these issues.

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The Differences Between Money Bill and Finance Bill

Here are some of the fundamental Difference Between Money Bill and Finance Bill -

Money BillFinance Bill
A money bill solely deals with the matters prescribed in Article 110 clause 1 of the ConstitutionA finance bill is a bill that is proposed in the Parliament and contains provisions relating to revenue and expenses
A money bill can be introduced in the Lok Sabha onlyA finance bill of category A can be introduced in the Lok Sabha, and category B can be presented in either House of Parliament
A money bill is like a government billA finance bill is a form of the ordinary bill
A money bill needs to have approval from the President of the Central GovernmentThe recommendation of the President is mandatory in the case of the finance bill
Money bills can be passed with or without the recommendation of the Rajya SabhaThe finance bill cannot be enacted without the recommendation of both the Lok Sabha and the Rajya Sabha
There is no provision regarding a joint sitting in case of money billsThe finance bill has certain provisions concerning the joint sitting of the Lok Sabha and the Rajya Sabha

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To conclude, 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. We have highlighted here the key Difference Between Money Bill and Finance Bill.

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FAQs on the Difference Between Money Bill and Finance Bill

Q1. What is the Difference Between Money Bill and Finance Bill in terms of the power to amend or reject the bill?

The Difference Between Money Bill and Finance Bill is that while the Rajya Sabha has no power to amend or reject the money bill, it is powerful enough to amend or reject the financial bill.

Q2. What is the Difference Between Money Bill and Finance Bill in terms of recommendations required?

The Difference Between Money Bill and Finance Bill is that in the case of a money bill, it is necessary to obtain the President's or the Government's prior consent. Whereas in the case of a finance bill, the President's approval is required in advance.

Q3. What is the Difference Between Money Bill and Finance Bill in terms of where they can be introduced?

The Difference Between Money Bill and Finance Bill is that while money bills are introduced in the Lok Sabha, the finance bill in category A is introduced in the Lok Sabha, and finance bills in category B can be introduced in either of the two houses.

Q4. What is the Difference Between Money Bill and Finance Bill in terms of the joint sitting provision?

The Difference Between Money Bill and Finance Bill is that in the case of money bills, there is no provision for the joint sitting, whereas there are provisions for combined sittings of the Lok Sabha and the Rajya Sabha in the case of finance bills.