Why in News ?
Union Cabinet gives ex-post facto approval for the Government amendments to the Finance Bill, 2021.
What is a Finance Bill ?
- Financial bills are those bills that deal with fiscal matters.
- Article 110 of the Constitution of India, the Finance Bill is a Money Bill.
- Financial bills are of three kinds:
- Money bills : Article 110
- Financial bills of First Kind : Article 117 (1)
- Financial bills of Second Kind : Article 117 (3)
- Financial Bills First Kind
- Contains not only any or all the matters mentioned in Article 110, but also other matters of general legislation.
- Introduced only in the Lok Sabha and not in the Rajya Sabha.
- Introduced only on the recommendation of the president.
- It is Governed by the same legislative procedure applicable to an ordinary bill.
- Financial Bills of Second Kind
- Contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110.
- It is treated as an ordinary bill and in all respects.
- Introduced in either House of Parliament and recommendation of the President is not necessary for its introduction.
- It cannot be passed by either House of Parliament unless the President has recommended to that House the consideration of the bill.
Money Bills
- Article 110 of the Constitution deals with the definition of money bills.
- The decision of the Speaker of the Lok Sabha is final for considering the Money Bill.
Who decides the Bill is a Finance Bill or Money Bill ?
- The Speaker of the Lok Sabha is authorised to decide whether the Bill is a Money Bill or not.
- Speaker’s decision shall be deemed to be final.
- Decision cannot be questioned in any court of law or in the either House of Parliament or even the president.
- A money bill can only be introduced in the Lok Sabha with the ascend of President.
Difference between a Money Bill and the Finance Bill
- All money bills are financial bills but all financial bills are not money bills.
- Only those financial bills are money bills which contain exclusively those matters which are mentioned in Article 110 of the Constitution.
- These are also certified by the Speaker of Lok Sabha as money bills.
- The financial bills Includes Article 117 (1) and (3) of the Constitution.
Source : PIB
GS II : Indian Constitution- historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Current Affairs : Current Affairs 21 April 2021 – IAS Current Affairs