What is a Bill?

A Bill is a draft of a legislative proposal placed before Parliament. It becomes a law — an Act — only after it is passed by both Houses of Parliament (or in a joint sitting where permitted) and receives the assent of the President under Article 111. Every Act of Parliament begins its life as a Bill.

Bills are classified on two bases. On the basis of who introduces them, they are either Public Bills (Government Bills, introduced by a minister) or Private Member's Bills (introduced by any MP who is not a minister). On the basis of their content, bills are of four kinds — and this content-based classification is the one that carries constitutional consequences.

The Four Types of Bills — At a Glance

1. Ordinary Bill (Articles 107 & 108)

An ordinary bill is concerned with any matter other than financial subjects. It is the most common category and enjoys the least procedural restriction.

• Can be introduced in either House of Parliament.
• Can be introduced by a minister or a private member; no prior recommendation of the President is required.
• Passed by a simple majority — a majority of members present and voting in each House.
• The Rajya Sabha has equal powers — it can amend or reject the bill, and can detain (delay) it for a maximum period of six months.
• In case of a deadlock between the two Houses, it can be resolved through a joint sitting under Article 108.
• When presented to the President, he may (a) give assent, (b) withhold assent, or (c) return the bill for reconsideration (except a Money Bill) under Article 111.

2. Money Bill (Article 110)

A bill is deemed to be a Money Bill if it contains only provisions dealing with all or any of the matters listed in Article 110(1). The word "only" is decisive — the moment a bill contains even one provision outside this list, it ceases to be a Money Bill.

Definition — Matters under Article 110(1)

1. Imposition, abolition, remission, alteration or regulation of any tax.
2. Regulation of the borrowing of money by the Government of India.
3. Custody of the Consolidated Fund or the Contingency Fund, and payments into or withdrawals from these funds.
4. Appropriation of money out of the Consolidated Fund of India.
5. Declaring any expenditure charged on the Consolidated Fund, or increasing the amount of any such expenditure.
6. Receipt of money on account of the Consolidated Fund or the public account of India, and the audit of the accounts of the Union or the States.
7. Any matter incidental to any of the above.

Speaker's Certification

If any question arises whether a bill is a Money Bill or not, the decision of the Speaker of the Lok Sabha is final (Article 110(3)). The Speaker's certificate is endorsed on the bill when it is transmitted to the Rajya Sabha and when it is presented to the President.

Procedure (Article 109)

• Can be introduced only in the Lok Sabha, and never in the Rajya Sabha.
• Can be introduced only on the recommendation of the President, and only by a minister.
• After being passed by the Lok Sabha, it is transmitted to the Rajya Sabha, which must return it within 14 days with its recommendations.
• The Lok Sabha may accept or reject any or all of the Rajya Sabha's recommendations. If accepted, the bill is deemed passed by both Houses in the modified form; if rejected, it is deemed passed in its original form.
• If the Rajya Sabha does not return the bill within 14 days, it is deemed to have been passed by both Houses at the expiry of that period in the form passed by the Lok Sabha.
• The Rajya Sabha cannot amend or reject a Money Bill — it has only recommendatory power. Hence no joint sitting can arise.
• The President can either give assent or withhold assent, but cannot return a Money Bill for reconsideration. (Since it is introduced with his prior recommendation, he normally gives assent.)

Examples of Money Bills

• Appropriation Bill — authorises the withdrawal (appropriation) of moneys from the Consolidated Fund of India, squarely under Article 110(1)(d).
• Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 — controversially certified and passed as a Money Bill; the Supreme Court upheld this certification in the Justice K.S. Puttaswamy (Aadhaar) judgment of 2018.

3. Financial Bills (Article 117)

Financial bills deal with fiscal matters — revenue or expenditure. A Money Bill is actually a species of financial bill. Hence the well-known rule: all Money Bills are Financial Bills, but not all Financial Bills are Money Bills. Apart from the Money Bill, Article 117 recognises two categories of financial bill.

Financial Bill (I) — Article 117(1)

This bill contains not only any of the matters specified in Article 110 (money matters) but also other matters of general legislation — for example, a bill with a borrowing clause that does not deal exclusively with borrowing.

• Like a Money Bill, it can be introduced only in the Lok Sabha and only on the recommendation of the President.
• In all other respects, it is governed by the same procedure as an ordinary bill.
• The Rajya Sabha can amend or reject it, and a joint sitting (Article 108) can be summoned to resolve a deadlock.
• When presented to the President, he may assent, withhold assent, or return it for reconsideration.
• Example: The annual Finance Bill that gives effect to the taxation proposals of the Union Budget — it carries Article 110 matters plus other provisions, and so is a Financial Bill (I), not a pure Money Bill.

Financial Bill (II) — Article 117(3)

This bill contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters listed in Article 110.

• It is treated as an ordinary bill in all respects.
• It can be introduced in either House.
• The President's recommendation is not required for its introduction, but it cannot be passed by either House unless the President has recommended its consideration.
• The Rajya Sabha can amend or reject it, and a joint sitting can be summoned in case of a deadlock.

Money Bill vs Financial Bill (I) vs Financial Bill (II)

4. Constitutional Amendment Bill (Article 368)

Article 368 grants Parliament the power to amend the Constitution and lays down the procedure. Such a bill amends the very provisions of the Constitution, and so demands a stricter voting threshold than an ordinary law.

• Can be introduced in either House, by a minister or a private member, and no prior permission of the President is required.
• Must be passed in each House separately by a special majority — that is, a majority of the total membership of that House (more than 50% of its total strength) and a majority of not less than two-thirds of the members of that House present and voting.
• There is no provision for a joint sitting in case of disagreement between the two Houses — each House must pass it on its own.
• Certain federal provisions require, in addition to the special majority, ratification by the legislatures of not less than half the states (by a simple majority) before the bill is presented to the President.
• When presented to the President, he must give assent — he can neither withhold assent nor return the bill. This was made obligatory by the 24th Constitutional Amendment Act, 1971.

Three Ways the Constitution Can Be Amended

1. By simple majority of Parliament — these amendments lie outside the scope of Article 368 (e.g., admission or establishment of new states, creation or abolition of state legislative councils, changes to certain schedules).
2. By special majority of Parliament under Article 368 — the bulk of the Constitution is amended this way.
3. By special majority + ratification by half the states — required for federal provisions such as the election of the President, the extent of executive power of the Union and States, the Supreme Court and High Courts, the distribution of legislative powers, any List in the Seventh Schedule, the representation of States in Parliament, and Article 368 itself.

Parliament can amend any part of the Constitution under Article 368, but its amending power does not extend to altering the "basic structure" of the Constitution — the enduring lesson of Kesavananda Bharati v. State of Kerala (1973). — Legacy IAS Faculty