A Note on Money Bills

The Union Budget’s most significant part is the Money Bill, and it deals with money matters. It is essential for the Finance Bill and gives data on tax collection and government spending. The Indian Constitution characterizes a cash bill in Article 110. Cash bills manage monetary issues, for example, tax collection, government spending, etc. The Bill is huge for Indian legislative issues and administration since it is connected to various significant issues, including the Aadhaar Bill and the Insolvency and Bankruptcy Bill. This article will examine Money Bill and deal with money matters in India, its definition, and the way that it contrasts with Financial Bill (Articles 117 (1) and 117 (3)).

In India, what is a money bill?

Article 110 of the Indian Constitution manages the Indian cash bill. A couple of arrangements in a bill permit it to be delegated as a cash bill. In India, the accompanying arrangements characterize a bill as a cash bill:

India’s Money Bill Provisions

1. The imposition, abolition, remission, modification, or regulation of any tax.

2. Regulations govern the Union government’s borrowing of money.

3. The custody of the Consolidated Fund of India or the Contingency Fund of India and the payment. Into or withdraw from any such fund.

4. Appropriation of funds from the Indian Consolidated Fund.

5. Any expenditure charged to the Consolidated Fund of India, or any increase in the amount of any such expenditure, shall be declared.

6. The receipt of assets for the Consolidated Fund of India or the public record of India, the authority or circulation of such assets, or the review of the Union’s or a state’s records.

7. Article 110 of the Indian Constitution also specifies the conditions under which a bill cannot be considered a money bill. These are the provisions.

When a bill includes provisions, it is not a money bill

• Imposition of fines or other monetary penalties.

• The demand for or payment of fees for licenses or fees for services rendered.

• Imposition, repeal, remission, modification, or regulation of any tax by any local authority or body for local purposes

Characteristics of Money Bill

• It manages tax collection, consumption, and credits of the association government, combined reserves, etc.

• It may very well be presented in Lok Sabha, as it were. The recommendation by the President is obligatory.

• A minister can present and pass the Money bill.

• The Speaker can approve a Money bill, and the Speaker’s decision is final.

• Rajya Sabha can’t alter the Bill. It can suggest revisions.

• In no less than 14 days, Rajya Sabha needs to return the Bill to Lok Sabha.

Types of  a Money Bill

There are two classifications of cash bills:

1.  Appropriation Bill

Article 114 of the Indian Constitution discusses the Appropriation Bill. This Bill gives the public authority power to utilize the combined asset assets during a financial year.

2. Finance Bill

This Bill is introduced in Lok Sabha just after introducing the association’s financial plan to make the monetary arrangements of the public authority usable for the ensuing monetary year. All money bills are cash bills; however, Finance Bill is characterized under Rule 219 of the Rules and Procedures of Lok Sabha.

What is the process by which a Money Bill becomes an Act?

The Indian Constitution prescribes a systematic procedure that must be followed to convert a bill into an act.

The Lok Sabha’s Role in the Budget Bill:

A money bill can be introduced directly in the Lok Sabha, the lower house of the Parliament. It is necessary to obtain the President’s prior approval before introducing a money bill in Lok Sabha. It was presented in Rajya Sabha after being passed by the Lok Sabha. The ruling government is considered defeated if the Bill does not receive a majority in the Lok Sabha.

Veto Power and the Money Bill:

A cash bill can’t be presented in Lok Sabha without the President’s earlier endorsement. Besides, assuming that the Bill is passed by the two houses and sent to the President for his endorsement, he can’t return it to Lok Sabha for reexamination since it was presented in Lok Sabha with his endorsement. Thus, the President can’t practice his veto control over money bills. The Speaker’s decision is final at every step.

The money bill deals with money matters, and it contains three readings:

1. First reading

2. Second reading

3. Third reading

Conclusion

Therefore, we can presume that a money bill is a subset of a monetary bill that deals with money matters like tax collection, consumptions, credits, merged reserves, etc. Cash bills go through a similar administrative cycle as different bills. There are as yet separating highlights, for example, outright power and powers to Lok Sabha to avoid any halt between the two houses and decrease delays. Assuming that a cash bill is presented in Lok Sabha on the President’s earlier proposal, it is expected to have been supported by the two houses.