Finance Bill and Money Bill

The Finance Bill forms a part of the Union Budget, with details about all the legal amendments required for the changes in taxation proposed by the Finance Minister of the country. Money bills are concerned with financial matters like taxation, public expenditure, etc. and are introduced to amend laws related to finance. These are introduced in the Lok Sabha as well as the Rajya Sabha but can only be amended or discussed in the Lok Sabha. This article will highlight the difference between a Finance bill and Money bill.

Finance Bill

The Finance Bill, which is commonly referred to as the “Act for Appropriation of Funds for Appropriations”, is a bill that states the exact amount of money that is to be spent by the Government of India and how it is meant to be spent. It also has many sections that talk about issues like tax relief, interest rates and inflation, etc. The Finance Bill forms a part of the Union Budget, which means it contains all the details regarding budgetary allocations by the central government. This bill originates in Parliament. It comes up before both houses at once after getting approval from both majority leaders in each house and since it comes up with many different issues concerning different ministries and departments, it takes some time to get passed by both houses.

Significance of Finance Bill

The Finance Bill is significant for Indian Polity and governance because it is a bill that talks about all the major issues that have to be addressed by the country, especially with regards to expenditure. This bill deals with matters like tax relief, inflation and interest rate, etc. It also speaks about the electoral support to political parties, formed on such issues as well. The Government has already enacted many important Acts like Right of Citizens Act (RC), Company Law Amendment Act (CLAA), First Information Report Act (FIRAA), etc from this bill.

Money Bill

A Money Bill is a type of an act that is introduced in Lok Sabha only. The Lok Sabha speaker can decide whether or not a bill is to be considered as a Money Bill or not. Every bill introduced in the Parliament should be either an Appropriation Bill or a Money Bill. The Speaker issues a report to this effect when he/she decides whether the Appropriation (Revenue) Bills and Appropriation (Capital) Bills together, constitute one Money Bill or two separate money bills. It can only contain provisions related to matters of taxation, expenditure, borrowing and accounting.

Significance of Money Bill

The money bills which are called “Acts for raising Revenue” are significant for Indian Polity because Parliament has been using them for many years now. These bills are used to authorise Government spending, which makes them significant for governance. This bill contains many sections that allow the raising of taxes by the Government and also authorises borrowing of money by issuing securities.

Difference between a Finance Bill and a Money Bill

1. A Finance Bill is a bill that states the exact amount of money that is to be spent by the Government of India and how it is meant to be spent. On the other hand, a Money Bill talks about matters like tax relief, interest rates and inflation etc.
2. A Finance Bill forms a part of the Union Budget. It comes up before both houses at once after getting approval from both majority leaders in each house and since it comes up with many different issues concerning different ministries and departments, it takes some time to get passed by both houses. On the other hand, a Money Bill originates in Lok Sabha only. It can only contain provisions related to matters of taxation, expenditure, borrowing and accounting.
3. A Finance Bill is a financial bill that talks about matters like tax relief, inflation and interest rate etc. On the other hand, Money Bill is a type of act that is introduced in Lok Sabha only.
4. A Finance bill can be introduced by any member of either house of Parliament as it is a financial matter. However, in Money bills, it is the Speaker of Lok Sabha alone who decides whether or not a bill is to be considered as a Money Bill or not.
5. The Finance bill is significant for Indian Polity and governance because it talks about all the major issues that have to be addressed by the country. It also speaks about the electoral support to political parties, formed on such issues as well. The Government has already enacted many important Acts like Right of Citizens Act (RC), Company Law Amendment Act (CLAA), First Information Report Act (FIRAA), etc from this bill. On the other hand, Money Bill is used to authorise Government spending, which make them significant for governance.

Conclusion

In India, both a Finance bill and a Money bill made their way into our parliament during our independence. Since then, it has been used for various purposes. The finance bill is important for the upkeep of the country and the money bill is important for our country’s governance. The finance bill is significant because it incorporates all issues that have to be considered by Parliament in terms of financial matters such as taxation, expenditure, borrowing and accounting etc. While on the other hand, the money bills are used to authorise Government spending that makes them significant for Indian Polity.