BY:- KUMAR SHIVAM

(188926)
FINANCE BILL
 Gives effect to the financial proposals of the Government of India for the
immediately following financial year.
 Presented at the time of presentation of the Annual Financial Statement before
Parliament
 To fulfill the requirement of Article 110 (1)(a) of the Constitution, detailing the
imposition, abolition, remission, alteration or regulation of taxes proposed in the
Budget.
WHAT?
 The Central Government, through this Act, gives effect to financial proposals at
the beginning of every Financial Year.
 The Act applies to all the States and Union Territories of India unless specified
otherwise.
 Finance Act thus making this Act one that renews itself each year.
 All the Governmental financial policies are included in this Act. The existing
policies, new policies, as well as changes made to existing policies are all
included here.
 Every Finance Act is assented by the President of India.
FINANCE BILL VS FINANCE ACT
 When the proposals are introduced to the Parliament it is called as a Finance Bill.
Once it is passed by the Parliament and assented to by the President, Finance Bill
becomes the Finance Act for that year.
 For instance, Union Budget 2015-16 for the Financial Year starting from April
2015 to March 2016, would be presented in February 2015 and would be
accompanied by Finance Act, 2015 indicating the year (2015) in which the Act is
passed.
FINANCE BILL VS MONEY BILL
 A Finance Bill is a Money Bill but not all money bills are Finance Bills.
 Money Bill refers to a bill (draft law) introduced in the Lower Chamber of Indian
Parliament (Lok Sabha) which generally covers the issue of receipt and spending
of money, such as tax laws, laws governing borrowing and expenditure of the
Government, prevention of black money etc.
NON-TAX PROPOSALS IN FINANCE BILL?
 Hon’ble Speaker clarified that as per Rule 219 of the Rules of Procedure of Lok
Sabha, the primary object of a Finance Bill is to give effect to the financial
proposals of the Government. At the same time, this Rule does not rule out the
possibility of inclusion of non-taxation proposals. Therefore, a Finance Bill may
contain non-taxation proposals also.
APPROPRIATION BILL
 While the Finance Bill generally seeks approval of the Parliament for raising
resources through taxes, cess etc., an Appropriation Bill seeks Parliament's
approval for the withdrawal from the Consolidated Fund of India to meet the
approved expenditures of the Government.
 Both Finance Bill and Appropriation Bill are money bills.
FINANCIAL BILL VS FINANCE BILL
Thank you