In law, the Bill refers to the proposal for a new statute or amendment in the existing one. To become law, it passes through both the houses of parliament. There are three types of bills, which are the ordinary bill, finance bill and constitutional amendment bill. Although money bill is a type of finance bill, most of the people use them interchangeably, but there are substantial differences between money bill and finance bill, which lies in their content of the two bills. While a money bill can be introduced in only the lower house of parliament, finance bill can be introduced in either of the two houses. Take an overview of the article to get some more differences on the two.
Content: Money Bill Vs Finance Bill
|Basis for Comparison||Money Bill||Finance Bill|
|Meaning||A bill is said to be money bill which exclusively deals with the matters prescribed in article 110 of the constitution.||All the bills, which deals with the provisions concerning revenue and expenditure.|
|Form||Government Bill||Ordinary Bill|
|Introduction||Lok Sabha only.||Category A bills are introduced in Lok Sabha while Category B bills can be introduced in any of the two houses.|
|Approval||Prior approval of President or Government is required.||Prior approval of President is required.|
|Certification||Certified by the Speaker of the Lok Sabha.||Not certified by the Speaker.|
|Rajya Sabha||The power of Rajya Sabha is restricted.||Both Lok Sabha and Rajya Sabha has equal powers.|
|Joint Sitting||No provision of joint sitting.||Provisions are there regarding joint sitting of Lok Sabha and Rajya Sabha.|
Definition of Money Bill
Money Bills as the name suggests, are the bills concerned with the provisions solely dealing with all or any of the matters prescribed in the article 110 (1). It encompasses matters relating to the levying, abrogation and regulation of taxes, regulation of government borrowing, the protection of Consolidated or Contingency Fund and inflow or outflow of money from any such funds, appropriation of money from Consolidated Fund of India, and so forth.
After obtaining the assent of the president of India, the bill introduced in the House of people i.e. Lok Sabha, which is certified as money bill by the Speaker and then passed to Rajya Sabha for the recommendation of amendments. Further, the Rajya Sabha can keep the bill, for a maximum of 14 days, or else it is deemed to be passed by both the houses. The Lok Sabha has the authority to accept or reject the suggestions given by the Rajya Sabha.
Definition of Finance Bill
A bill proposed in Lok Sabha every year, just after the declaration of Union Budget for the upcoming year, to undertake the proposals made by the Government, is known as Finance Bill. It refers to any bill that contains matters relating to the revenue and expenditure of the country. It takes into account the imposition of new taxes, alteration in the existing tax structure or continuance of the older one, beyond the term assented by the Parliament are presented via finance bill.
A memorandum comprising of explanations of the provisions covered is enclosed with the bill. The bill has to be enacted by the Parliament within 75 days of its introduction. The finance bill is classified into two categories, which is described as under:
- Category A: The bill covers the provisions of Article 110 (1) of the Constitution of India. It can be originated only in Lok Sabha, after the assent of the President of the country.
- Category B: It contains clauses relating to the expenditure from Consolidated Fund of India. Such bills can be introduced in any of the two houses. Prior approval of President is the must, for consideration of the bills.
Key Differences Between Money Bill and Finance Bill
The following points describe the fundamental differences between money bill and finance bill:
- A bill is considered as a money bill, which solely deals with the matters prescribed in Article 110 clause 1 of the Constitution. A finance bill is a bill proposed in the parliament that contains provisions relating to revenue and expenses.
- A money bill is more like a government bill, while a finance bill is a form of the ordinary bill.
- A money bill can be introduced in Lok Sabha only. On the other hand, a finance bill of category A can be originated in Lok Sabha and category B can be introduced in either house of Parliament.
- Before the introduction of the bill, a money bill is to be presented before President or Central Government for approval. Conversely, the recommendation of President is mandatory, in the case of Finance Bill.
- Only those finance bills which carry speaker’s certification is termed as a money bill, and the rest are finance bills.
- The power of Rajya Sabha is restricted, as the money bill can be passed with or without the recommendation of Rajya Sabha. As against this, in the case of finance bill, both Lok Sabha and Rajya Sabha has equal powers, as the bill cannot be enacted without their recommendation.
- In the case of a money bill, there is no provision regarding joint sitting. On the contrary, when we talk about finance bill, there are certain provisions concerning joint sitting of Lok Sabha and Rajya Sabha.
Therefore, with the above discussion, you might be able to differentiate the two types of bill. Moreover, it can be said that every money bill is a finance bill until and unless it is specified by the Speaker of the Lok Sabha as the money bill. Further, every finance bill is not the money bill.