Types of Bill: Ordinary, Money, Financial and Constitutional Amendment Bill
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Types of Bill: Ordinary, Money, Financial and Constitutional Amendment Bill


Hello friends! In this lecture we will learn about Bill and
its types. A bill when passed by both the houses of Parliament
and given Presidential assent becomes a law. There are four types of bills, namely:
Ordinary Bill, Money Bill, Financial Bill, and Constitutional Amendment Bill. A Constitutional amendment bill is passed
to amend one or more provisions of Constitution. It is introduced under Article 368 of the
constitution. A money bill deals with money matters as mentioned
under Article 110. A Financial bill deals with money as well
as non-money matters. An Ordinary Bill deals with remaining matters
i.e., those matters which are not covered under Constitutional, Money or Financial bill. Let us understand the Procedure for Passage
of Bills 1. Ordinary Bill: An ordinary bill can be introduced
in either House of the Parliament. It does not require recommendation of President
for its introduction except the bill introduced under Article 3 of the constitution. The bill introduced under Article 3 deals
with Change of name, area and boundary of the states. Those bills require recommendation of President
which are introduced on behalf of Council of Ministers. An ordinary bill can be passed by simple majority
i.e., majority of the members present and voting. Both the houses of Parliament enjoy equal
legislative powers over the passage of the ordinary bills. Therefore, there can be a deadlock between
both the houses which can be resolved by joint sitting of both the houses. When an ordinary bill is presented to the
President for his assent, President has four options: a. He may give his assent to the bill. In that case, the bill becomes a law. b. He may withhold his assent to the bill i.e.,
he may exercise Absolute Veto. In other words, president refuses to sign
the bill. President exercises absolute veto only on
advice of Council of Ministers. c. President may return the bill for reconsideration
of the Houses of the parliament either with or without recommendations i.e., he may exercise
Suspensive Veto. However, if the Parliament sends the bill
again, then it is mandatory on the President to give his assent. d. He does not ratify, reject or return the bill,
but simply keeps the bill pending for an indefinite period of time i.e., he may exercise Pocket
Veto. Pocket veto is not explicitly mentioned in
the constitution but it is implied because the constitution does not specify the time
limit within which the president is required to give his assent. 2. Money bill: A money bill is a bill that deals
with one or more money matters mentioned under Article 110. Following matters constitute money matters: I. Tax related matter i.e., imposition, abolition,
alteration or reduction of any tax. II. Borrowing or guarantee for any loan given
by Government of India. III. Custody, receipt, payment, withdrawal out
of Consolidated Fund of India. IV. Declaration of any expenditure as charged
on Consolidated Fund of India. Consolidated fund of India is the largest
fund of government of India. V. Custody or payment into Contingency Fund
of India. Contingency fund of India is used to meet
unforeseen expenditure. VI. Custody of Public account of India. Public accounts are in the control of executive. VII. Audit and accounts of Union or of a State
VIII. Any other matter incidental to above matters. It is to be noted that payment out of contingency
fund requires approval of the President of India. Similarly, Union executive is authorized for
the receipt into and payment of money from Public account. Thus, there is no requirement of money bill
for these matters. Money bill can be introduced only in Lok Sabha
and it can be introduced only on the recommendation of President. (The bills which are introduced on behalf
of Council of Ministers require recommendation of President). Lok Sabha enjoys overriding powers in the
passage of money bill. The directly elected representatives have
been given more powers in money matters. When the money bill is presented in Rajya
Sabha after its passage in Lok Sabha, Rajya Sabha has the following options: a. It also passes the bill. b. It rejects the money bill. On being rejected, the money bill is deemed
to have been passed by both the houses of Parliament. c. It takes no action on the bill for 14 days. On expiry of 14th day, the bill is deemed
to have been passed by both the houses of Parliament. d. Rajya Sabha can suggest amendments to money
bill, then the bill goes back to Lok Sabha and it is deemed to have been passed by both
the houses in the form in which Lok Sabha passes the bill for the second time. There is no deadlock between the two houses
over the passage of money bill because Lok Sabha has far more powers than Rajya Sabha. When a money bill is presented to the President
for his assent, then by convention, he shall give his assent to the money bill. 3. Financial bill: A Financial bill is a bill
which consists of both money and non-money matters. Financial bill, like a money bill, can be
introduced only in Lok Sabha and on the recommendation of the President. If speaker does not certify the bill as money
bill, then it is passed like an ordinary bill. Thus, a financial bill is introduced like
a money bill and passed like an ordinary bill. Like an ordinary bill, Rajya Sabha enjoys
equal legislative powers over its passage. It is passed by a simple majority. In case of a deadlock between the two houses,
joint session of both the houses is convened by the President. When the bill is presented to the President
for his assent, he has four options as are available in the case of an ordinary bill. 4. Constitutional Amendment Bill: Constitutional
amendment bill is passed to amend one or more provisions of constitution. It is introduced under the article 368 of
the constitution. It can be introduced in any house of the Parliament
and it does not require recommendation of the president for its introduction. It is passed by both the houses of parliament
by majority of not less than 2/3rd of the members present and voting and by majority
of not less than half of the total strength of the house. Thus, there are two separate conditions – 2/3rd
of the members present and voting and not less than half of the total strength of the
house. Both the conditions are required to be fulfilled. If any of the two houses disagree on the passage
of the constitutional amendment bill, the bill comes to an end. There is no provision of deadlock and joint
sitting over the passage of this bill. When the constitutional amendment bill is
presented to the president for his assent it is explicitly mentioned under article 368
that he has no other choice other than giving his assent. If the constitutional amendment bill seeks
to amend any of the provisions which relate to the distribution of powers between Centre
and State, and the bill after being approved from the parliament shall be further approved
by atleast half of the state legislatures before receiving the assent of the president. Following matter involve distribution of powers
between the Centre and the States: Executive matters: Election of President
In an election of president, both states as well as union have representation. Article 73 extent of executive power of the
union Article 162 extent of executive power of a
state Legislative matters:
Centre-state legislative relations Schedule 7
Provisions related to Union and State Judiciary Representation of states in Parliament
Provisions of Article 368 itself It may happen that parliament may amend the
constitutional amendment procedure mentioned under article 368. Thereby, giving powers of state legislature
to retify constitutional amendments. Thus, provisions of article 368 have also
been mentioned in this list. Let us quickly compare all the four types
of bills: Definition
Ordinary bill covers remaining matters. Money bill deals with money matters. Financial bill deals with money as well as
non-money matters. Constitutional amendment bill is passed to
amend one or more provisions of constitutions. Introduction
Ordinary bill can be introduced in Lok Sabha or Rajya Sabha. Money bill can be introduced only in Lok Sabha. Financial bill can be introduced only in Lok
Sabha. Constitutional amendment bill can be introduced
in Lok Sabha or Rajya Sabha. Recommendation of President
Recommendation of President is not required for Ordinary bill except bill introduced under
article 3. Recommendation of President is required for
Money bill. Recommendation of President is also required
for Financial bill. Recommendation of President is not required
for Constitutional amendment bill. Certification by speaker
Certification by speaker is only required for money bill. Powers of Lok Sabha and Rajya Sabha
Powers of Lok Sabha and Rajya Sabha are unequal only in case of money bill. Deadlock and joint sitting
Deadlock and joint sitting can take place only in case of ordinary bill and financial
bill. Deadlock and joint sitting cannot take place
in case of money bill because Lok Sabha has more powers. Deadlock and joint sitting cannot take place
in case of constitutional amendment bill because in case one of the houses rejects the bill,
the bill comes to an end. Majority required
Ordinary, money and financial bill require simple majority for their passage. Constitutional amendment bill requires special
majority i.e., 2/3rd of the members present and voting and not less than half of the total
strength of the house. Options with president
In case of ordinary and financial bill, president has four options i.e., he may give assent
to the bill, he may use suspensive pocket or absolute veto. In case of money bill, by convention, president
shall give assent. In case of constitutional amendment bill,
as mentioned under article 368, president shall give assent. Let us evaluate ourselves on what we have
learnt on bills. Q1. A deadlock between the Lok Sabha and the Rajya
Sabha calls for a joint sitting of the Parliament during the passage of
Statement 1 Ordinary Bill. Correct
Statement 2 Money Bill. There cannot be any deadlock over money bill
because Lok Sabha has far more powers than Rajya Sabha. Statement 3 financial Bill. Correct
Thus, answer is option (c). Q2. Which one of the following bills must be passed
by each house of the Indian Parliament by special majority? Answer is choice (d) Constitutional Amendment
Bill. Thank you for watching this video. For Best learning you can watch this video
along with Prepmate-Cengage UPSC series which is available online as well as offline. Book feature: complete subject in a single
book with practice and past year questions at the end of the chapters. Model answers for UPSC Mains from authors. Using the application Prepmate and web portal
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