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Finance Minister Nirmala Sitharaman will present the Union Budget on July 23, having already presented an Interim Budget ahead of the Lok Sabha elections. In light of the upcoming Budget, we take a look at some of the terms associated with the exercise.
What is a Finance Bill?
Every year, the Finance Minister proposes numerous changes in taxes for the upcoming financial year. These changes relate to various existing laws, such as the Income Tax law, the Stamp Act, and the Money Laundering law, which govern different taxes in the country.
The Finance Bill serves the purpose of incorporating amendments with all the proposed changes into the relevant laws without necessitating separate amendments for each Act. Following the presentation of the annual budget in Parliament, the Finance Minister introduces the bill in the Lok Sabha.
Accompanied by a memo justifying the inclusion of provisions, the Finance Bill must be approved by Parliament within 75 days. It is crucial to note that while a Finance Bill is also a Money Bill, the two terms represent distinct concepts.
Money Bills specifically address matters outlined in Article 110 of the Constitution. According to Article 110, a Bill is classified as a Money Bill if it solely deals with:
1. The imposition, abolition, remission, alteration, or regulation of any tax.
2. The regulation of borrowing money or providing guarantees by the Government of India, or amending laws related to financial obligations undertaken by the government.
3. The custody of the consolidated fund or the Contingency fund of India, and the withdrawal or payment of funds.
4. The appropriation of funds from the Consolidated Fund of India.
5. The declaration of any expenditure as charged on the Consolidated Fund of India or an increase in such expenditure.
6. The receipt of money for the Consolidated Fund of India or the public account of India, the custody or issue of such money, or the audit of the Union or State accounts.
The determination of whether a bill is a Finance or a Money Bill, or neither, rests with the Speaker. According to Article 110, "If any question arises whether a bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final."
In conclusion, while all Finance Bills are Money Bills, the reverse may not always be true.
Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.