Differences between money bill and ordinary bill
Before we study the differences between money bill and ordinary bill let us look at the salient features of both of these which are central to the lawmaking procedure in India.
Articles 109 and 110 of the Constitution deal with money bills. It states that a bill is deemed to be a money bill if it contains ‘only’ provisions dealing with all or any of the following matters:
- The imposition, abolition, remission, alteration or regulation of any tax
- The regulation of the borrowing of money by the Union government
- The custody of the Consolidated Fund of India or the contingency fund of India, the payment of moneys into or the withdrawal of money from any such fund
- The appropriation of money out of the Consolidated Fund of India
- Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of any such expenditure
- The receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money, or the audit of the accounts of the Union or of a state
- Any matter incidental to any of the matters specified above
However, a bill is not to be deemed to be a money bill by reason only that it provides for
- The imposition of fines or other pecuniary penalties
- The demand or payment of fees for licenses or fees for services rendered
- The imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.
Articles 107 and 108 of the Constitution deal with ordinary bills
Following are the differences between a money bill and ordinary bill
| Ordinary Bill | Money Bill |
| 1. It can be introduced either in the Lok Sabha or the Rajya Sabha. | 1. It can be introduced only in the Lok Sabha and not in the Rajya Sabha. |
| 2. It can be introduced either by a minister or by a private member. | 2. It can be introduced only by a minister. |
| 3. It is introduced without the recommendation of the president. | 3. It can be introduced only on the recommendation of the President. |
| 4. It can be amended or rejected by the Rajya Sabha. | 4. It cannot be amended or rejected by the Rajya Sabha.The Rajya Sabha should return the bill with or without recommendations, which may be accepted or rejected by the Lok Sabha. |
| 5. It can be detained by the Rajya Sabha for a maximum period of six months. | 5. It can be detained by the Rajya Sabha for a maximum period of 14 days only. |
| 6. It does not require the certification of the Speaker when transmitted to the Rajya Sabha (if it has originated in the Lok Sabha). | 6. It requires the certification of the Speaker when transmitted to the Rajya Sabha. |
| 7. It is sent for the President’s assent only after being approved by both the Houses. In case of a deadlock due to disagreement between the two Houses, a joint sitting of both the houses can be summoned by the president to resolve the deadlock. | 7. It is sent for the President’s assent even if it is approved by only Lok Sabha. There is no chance of any disagreement between the two Houses and hence,there is no in this regard.provision of joint sitting of both the Houses |
| 8. Its defeat in the Lok Sabha may lead to the resignation of the government (if it is introduced by a minister). | 8. Its defeat in the Lok Sabha leads to the resignation of the government. |
| 9. It can be rejected, approved, or returned for reconsideration by the President. | 9. It can be rejected or approved but cannot be returned for reconsideration by the President. |
| 10. It is covered under Articles 107 and 108 of the Constitution | 10. It is covered under Articles 109 and 110 of the Constitution |
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Differences between money bill and ordinary bill
Bills which exclusively contain provisions for imposition and abolition of taxes, for appropriation of moneys out of the Consolidated Fund, etc., are certified as Money Bills by the Speaker of the Lok Sabha. Money Bills can be introduced only in Lok Sabha on the recommendation of the President per Articles 109, 110 and 117.
Differences between money bill and ordinary bill
For every fiscal year, the annual budget or annual financial statement with demand for grants on the recommendation of the President per Articles 112 to 116 shall be passed by the Lok Sabha. The Rajya Sabha cannot make amendments to a Money Bill passed by the Lok Sabha and sent to it.
Differences between money bill and ordinary bill
It can, however, recommend amendments in a Money Bill, but must return all Money Bills to Lok Sabha within fourteen days from the date of their receipt.
Differences between money bill and ordinary bill
The Lok Sabha can choose to accept or reject any or all of the recommendations of the Rajya Sabha with regard to a Money Bill.
Differences between money bill and ordinary bill
If Lok Sabha accepts any of the recommendations of Rajya Sabha, the Money Bill is deemed to have been passed by both Houses with amendments recommended by Rajya Sabha and accepted by Lok Sabha.
Differences between money bill and ordinary bill
If Lok Sabha does not accept any of the recommendations of Rajya Sabha, the Money Bill is deemed to have been passed by both Houses in the form in which it was passed by Lok Sabha without any of the amendments recommended by Rajya Sabha.
Differences between money bill and ordinary bill
If a Money Bill passed by Lok Sabha and transmitted to Rajya Sabha for its recommendations is not returned to Lok Sabha within the said period of fourteen days, it is deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by Lok Sabha.
Differences between money bill and ordinary bill
When a money bill introduced in the Lok Sabha by the government fails to get its approval, the ruling party is treated as not commanding the majority support in the Lok Sabha or shall be dismissed by the president to pave way for new government / fresh elections or opposition would move no confidence motion.
Differences between money bill and ordinary bill
At state level also money bills shall be introduced in the legislative assembly only per Articles 198, 199 and 207 on the recommendation of the governor. When a money bill introduced in the legislative assembly by the state government fails to get its approval, the ruling party is treated as not commanding the majority support in the legislative assembly or shall be dismissed by the governor to pave way for new government / fresh elections or opposition would move no confidence motion.
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