What is the difference between a Money Bill & a Finance Bill?
The Lower House of Parliament i.e. Lok Sabha has today passed Four(4) Supplementary Bills of the GST which will pave the path for smooth roll out of GST from 1st July 2017. Since this Bill has been passed as Money Bill passage of it from the Upper House i.e. Rajya Sabha will not be an issue. The Opposition parties has questioned about it passing as a Money Bill and not Finance Bill.
The lower house passed the four bills---central GST bill, the integrated GST bill, the union territory GST bill, and the GST (compensation to states) bill.
Since these bills were tabled as money bills, the Rajya Sabha can only make recommendations on the proposed laws and that too within 14 days of the bills being sent to the upper house. This means the government will be able to push through these bills in Parliament before the end of the ongoing budget session on 12 April.
Whenever the Budget session starts the Ruling and Opposition Parties Deliberate on whether the Bill to be introduced should be a Money Bill or Finance Bill, Recently the NDA Govt. has passed the Four (4) supplementary GST Bills as a Money Bill despite the opposition demand for Finance Bill.
But for the common man Money Bill and Finance Bill are a confusing one. Hence this article is based on to distinguish between the two types of Bills.
Every bill which has provisions related to financial matters is a Financial Bill. There are three kinds of Financial Bills in Indian parliament viz.
- Money Bills
- Financial Bills category-I
- Financial Bill category-II.
Money Bills are governed by articles 108, 109, 110, 111 and 117 of the Constitution and Rules 72, 96, 103 to 108 of the Rules of Procedure and Conduct of Business in Lok Sabha.