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Budget 2023: What is Finance Bill and how is it different from Money Bill?
Written By Shivani Tiwari
Edited By Abhinav Ranjan
Published: | Updated:
Finance Bill: The finance bill is a part of the Union Budget which is introduced in the Lok Sabha on the same day when the Budget is presented.
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India's Finance Minister Nirmala Sitharaman stands next to Minister of State for Finance and Corporate Affairs Anurag Thakur (L) as she leaves her office to present the federal budget in the parliament in New Delhi, India, February 1, 2021. Pic: Reuters
Finance Bill: The Finance Bill concerns the country's finances. It is a bill that contains the financial proposals for the upcoming financial year. The finance bill is a part of the Union Budget which is introduced in the Lok Sabha on the same day when the Budget is presented. It contains provisions for the imposition, abolition, alteration or regulation of taxes. As per the Article 110 of the Constitution of India, Finance Bill is also a Money Bill.
Features of the Finance Bill
- Finance Bills are divided into three classes - Finance Bill Category I, Finance Bill Category II, and the Money Bill.
- As per PRS India, a money bill is a Money Bill only if it contains provisions related to taxation, borrowing of money by the government, expenditure from or receipt to the consolidated fund of India. Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.
- Both categories of Finance Bills contain provisions related to expenditure, taxation, or any other matter.
- All money bills are financial bills, but not all financial bills are money bills.
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Finance Bill Vs Money Bill
As per Section 110 of the Constitution, a money bill has to be introduced in the Lok Sabha. Then, it is transmitted to the Rajya Sabha for its recommendations. The Rajya Sabha has to return the Bill with recommendations in 14 days. However, the Lok Sabha can reject all or some of the recommendations.
On the other hand, Finance Bill, as per Article 117 of the Constitution categorically lays down that a Bill shall not be introduced or moved except with the President’s recommendation under some special provisions. A Bill that makes such provisions shall not be introduced in the Rajya Sabha.
What is Blue Sheet?
It is a document that contains information about the budget in detail and its implications. It is mostly released a few days after the union budget is presented. Its provides an in-depth look at the government's financial plans.
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