Finance Bill 2023

  • March 28, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Finance Bill 2023

Subject : Polity

Section: Parliament

Concept :

  • With the approval of the Finance Bill 2023 by both Houses of Parliament, the government completed its 2023–2024 budget exercise.

Finance Bill

  • The Finance Bill, which is a component of the Indian Union Budget, outlines all the legal changes necessary to implement the proposed changes to taxation made by the finance minister.
  • The Finance Bill, as a Money Bill, must be approved by the Lok Sabha, the lower house of the Parliament, before it can become the Finance Act.
  • The Finance Bill is a Money Bill in which the government proposes new taxes, makes changes to the existing tax system, or makes suggestions for the continuation of the current tax system for a specific amount of time after the Parliament initially authorised it.

Characteristics of the Finance Bill

  • Finance Bills are divided into three categories: the Money Bill, Finance Bill Category I, and Finance Bill Category II.
  • Money Bills include elements that deal with regulation or borrowing, changes to national or state tax rules, the withdrawal of funds from a contingency or consolidated fund, etc.
  • Both types of finance bills include clauses that deal with taxes, spending, and other issues.
  • A Money Bill will always be a Finance Bill. However, a Finance Bill need not necessarily be a Money Bill.
  • 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.
  • A money bill cannot be returned by the president for any reason.
  • The Finance Bill must be enacted (passed by the Parliament and assented to by the president) within 75 days of introduction.
  • The Finance Act legalises the income side of the budget and completes the process of the enactment of the budget.

More about Financial Bills

  • Financial bills are those bills that deal with fiscal matters, that is, revenue or expenditure.
  • Financial bills are of three kinds:
  • Money bills–Article 110
  • Financial bills (I)–Article 117 (1)
  • Financial bills (II)–Article 117 (3)

Financial Bills (I)

  • A financial bill (I) is a bill that contains the matters mentioned in Article 110, and also other matters of general legislation.
  • A financial bill (I) is similar to a money bill in two respects;
  • Both of them can be introduced only in the Lok Sabha and not in the Rajya Sabha.
  • Both of them can be introduced only at the recommendation of the president.
  • In all other respects, a financial bill (I) is governed by the same legislative procedure applicable to an ordinary bill. Hence, it can be either rejected or amended by the Rajya Sabha.
  • In case of a disagreement between the two Houses over such a bill, the president can summon a joint sitting of the two Houses to resolve the deadlock.
  • When the bill is presented to the President, he can either give his assent to the bill or withhold his assent to the bill or return the bill for reconsideration in the Houses.

Financial Bills (II)

  • A financial bill (II) 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 in all respects. The only special feature of this bill is that it cannot be passed by either House of Parliament unless the President has recommended to that House the consideration of the bill.
  • Financial bill (II) can be introduced in either House of Parliament and a recommendation of the President is not necessary for its introduction.
  • The recommendation of the President is not required at the introduction stage but is required at the consideration stage.
  • It can be either rejected or amended by either House of Parliament. In case of a disagreement between the two Houses over such a bill, the President can summon a joint sitting of the two Houses to resolve the deadlock.
  • When the bill is presented to the President, he can either give his assent to the bill or withhold his assent to the bill or return the bill for reconsideration in the Houses.

For further notes on Money Bill, refer – https://optimizeias.com/money-bill/

Finance Bill 2023 Polity