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.
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.
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.
Differences Between Money Bill and Finance Bill
Here are some of the fundamental Difference Between Money Bill and Finance Bill:
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
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
A money bill is like a government bill
A finance bill is a form of the ordinary bill
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
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 the Rajya Sabha
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 vs Fianance Bill
Apart from the major differences discussed about the Money Bill and Finance Bill, here are some of the other important points that should not be missed.
- 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 the houses have equal powers.
Money Bill and Finance Bill UPSC
Financial Bill and Money Bill are an important part of the Polity segment of the UPSC Syllabus. Every year, questions are asked in UPSC Prelims and UPSC Mains on the topic. One should practice UPSC Previous Year Question Papers to better understand the UPSC Exam Pattern.
Money Bill and Finance Bill Questions
Question: Regarding Money Bill, which of the following statements is incorrect?
- A bill shall be deemed a Money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.
- A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
- A Money Bill is concerned with appropriating money from the Contingency Fund of India.
- A Money Bill deals with regulating borrowing money or giving any guarantee by the Government of India.
Answer: Option C
Question: Consider the following statements:
- Since the sums required to meet expenditure described by the Constitution of India as expenditure charged upon the Consolidated Fund of India are not submitted to the vote of Parliament, no House is competent to discuss these estimates.
- The annual Finance Bill provides the legal authority for withdrawing sums from the Consolidated Fund of India.
Which of the statement given above is/are correct?
- Only 1
- Only 2
- Both 1 and 2
- Neither 1 nor 2
Answer: Option D