The Money Bill, which addresses financial issues, is the most important component of the Union Budget. It provides information on tax revenue and government spending, which is crucial for the Finance Bill. In Article 110, the Indian Constitution defines a currency banknote. Cash bills are used to handle financial matters including tax collecting, government spending, etc. Given that it is linked to several important topics, such as the Aadhaar Bill and the Insolvency and Bankruptcy Bill, the Bill is extremely important for Indian legislative concerns and administration. This article will discuss Money Bill, its definition, and how it differs from Financial Bill (Articles 117 (1) and 117 (3)), as well as money-related issues in India.
What is a money bill in India?
The Indian cash bill is governed by Article 110 of the Indian Constitution. A bill may be designated as a cash bill thanks to a few clauses in it. The accompanying arrangements refer to a bill as a cash bill in India:
Money Bill Provisions in India
- The levying, repealing, waiving, modifying, or controlling of any tax.
- The Union government‘s ability to borrow money is regulated.
- The payment and the care of the Indian Reserve Fund or the Consolidated Fund of India. Into or take money out of any such fund.
- Funds from the Indian Consolidated Fund are appropriated.
- It is required to declare any expenditures charged to the Consolidated Fund of India or any increases to such expenditures.
- The authority or circulation of such assets, the evaluation of the Union’s or a state’s records, or the reception of assets for the Consolidated Fund of India or the public record of India.
- A law cannot be regarded as a money bill under certain circumstances, which are outlined in Article 110 of the Indian Constitution. The rules are as follows.
When a bill includes provisions, it is not a money bill.
- Levying fines or other financial sanctions.
- The request for or payment of license fees or fees for services.
- Any municipal authority or entity may impose, revoke, abate, modify, or regulate any tax for local purposes.
Features of a Money Bill
- It oversees tax collection, government association consumption and credits, joint reserves, etc.
- It could very likely be tabled in the Lok Sabha. The President‘s recommendation must be followed.
- The Money bill may be proposed and approved by a minister.
- A money bill may be approved by the Speaker, and the Speaker’s decision is final.
- Rajya Sabha is unable to change the Bill. It might recommend changes.
- The Bill must be sent back to Lok Sabha by Rajya Sabha in no less than 14 days.
Different Money Bill Types
Cash bills fall into two categories:
- Bill of Appropriations: The Indian Constitution‘s Article 114 addresses the Appropriation Bill. The combined asset assets may be used by the public authority within a financial year thanks to this Bill.
- Budget Bill: This Bill is presented in the Lok Sabha shortly after the association’s financial plan in order to make the public authority’s financial arrangements applicable for the following fiscal year. All money bills are cash bills, but the Lok Sabha’s Rule 219 defines the Finance Bill as something different.
What steps must be taken for a Money Bill to become an Act?
To turn a bill into an act, one must follow a specific process that is outlined in the Indian Constitution.
Role of the Lok Sabha in the Budget Bill
A money measure may be introduced right away in the Lok Sabha, the Parliament’s lower body. Before proposing a money bill in Lok Sabha, the President‘s prior consent is required. After being approved by the Lok Sabha, it was presented before the Rajya Sabha. If the Bill doesn’t pass with a majority in the Lok Sabha, the current administration is thought to have lost.
The Money Bill and the Veto Power
Without prior approval from the President, a cash bill cannot be submitted in the Lok Sabha. Additionally, if the Bill is approved by both chambers and delivered to the President for his signature, he will be unable to send it back to Lok Sabha for another look since it was presented there with his approval. As a result, the President is unable to use his veto power over appropriations measures. At every stage, the Speaker’s judgment is conclusive.
The money bill addresses financial issues and has three readings:
- Initial reading
- Following reading
- Second reading
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