Budget 2018: The tabling of the Economic Survey has set off the countdown for Budget 2018 in parliament on February 1. Like every year, there will be a set of confusing economic jargons and terms used during Finance Minister Arun jaitley’s Budget speech and then repeated in television debates and newspapers. A thorough understanding of the Union Budget requires a short insight on some crucial subjects like Fiscal Deficit, Revenue Deficit, Primary Deficit, Fiscal Policy, Inflation, Capital Budget, Monetary Policy and Finance Bill. One such important term is “Money Bill.” Here’s a quick look at what is a Money Bill and where will it find its place during the presentation of Budget 2018.
What is Money Bill?
A Money Bill refers to a draft law introduced in Lok Sabha. The Bill deals with issues such as receipt and spending of money, such as tax laws, laws governing borrowing and expenditure of the government, prevention of black money etc. Instead of being a separate Bill in itself, a money bill is more like a category. The Speaker has the power to decide whether a bill is a money bill or ordinary bill. The examples of Money Bills are Finance Bill and Appropriation Bill. After presenting Budget 2018, Finance Minister Arun Jaitley will bring Finance Bill – categorised under Money Bill.
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Article 110 of Indian constitution talks about Money Bill.
Under Article 110(1) of the Constitution, a Bill is deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters:
(a) the imposition, remission, abolition, alteration or regulation of any tax;
(b) regulation of borrowing by the government;
(c) custody of the Contingency Fund or Consolidated Fund of India, and payments into or withdrawals from these Funds;
(d) appropriation of money out of the Consolidated Fund of India;
(e) declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;
(f) 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; or
(g) any matter incidental to any of the matters specified in sub-clauses (a) to (f).
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Difference between Finance Bill and Money Bill
There is little difference between the two. A bill, which solely deals with the matters prescribed in Article 110 clause 1 of the Constitution, is considered as a Money Bill. While a finance bill is a bill proposed in the parliament that contains provisions relating to revenue and expenses. The money bill is more like a government bill and can only be brought by a member of the government. While a Finance Bill can be brought in either house of the parliament. Budget 2018 will witness Finance Minister Arun Jaitley presenting a Money Bill in the form of Finance Bill.