Why this matters now
Money bills (Art 110), their distinction from financial bills, and the budget stages are heavily tested in prelims — and the money-bill route has been a subject of major judicial scrutiny.
What is a money bill?
A Money Bill (Article 110) deals only with matters like taxation, government borrowing and the Consolidated Fund. It can be introduced only in the Lok Sabha (with the President’s recommendation); the Rajya Sabha can only suggest changes (within 14 days) which the Lok Sabha may reject. The Speaker certifies a bill as a money bill (final).
Money vs financial bills
A Financial Bill contains money matters plus other provisions, and (unlike a money bill) requires the Rajya Sabha’s assent. Note: all money bills are financial bills, but not vice versa. The money-bill classification matters because it bypasses the Rajya Sabha.
The budget process
The Union Budget (Annual Financial Statement, Art 112) goes through: presentation, general discussion, scrutiny by departmental committees, voting on Demands for Grants (with cut motions) in the Lok Sabha, the Appropriation Bill (to draw from the Consolidated Fund), and the Finance Bill (to enact taxes). The Rajya Sabha cannot vote on grants.
UPSC angle
Know money bill (Art 110, only Lok Sabha, RS only recommends, Speaker certifies) vs financial bill (needs RS assent), and the budget stages (Demands for Grants/cut motions, Appropriation Bill, Finance Bill).
Frequently asked questions
What is a money bill?
A bill dealing only with matters under Article 110 (taxation, borrowing, the Consolidated Fund), which can be introduced only in the Lok Sabha.
What is the Rajya Sabha’s role in a money bill?
It can only make recommendations within 14 days, which the Lok Sabha may accept or reject.
How is a money bill different from a financial bill?
A financial bill has money matters plus other provisions and needs the Rajya Sabha’s assent; a money bill does not.
What are the Appropriation and Finance Bills?
The Appropriation Bill authorises spending from the Consolidated Fund; the Finance Bill enacts the year’s tax proposals.