Budget 2023: What's The Role Of Finance Bill
The Finance Bill is presented before the Parliament every year as part of the Union Budget documents. It is a Money Bill, which is used to implement changes in taxation proposed in the annual Budget. Finance Minister Nirmala Sitharaman will present the Union Budget 2023-24 in Parliament on February 1.
What is a Finance Bill?
As per Article 110 of the Constitution of India, a Finance Bill is a Money Bill which can only be presented in the lower house of the Parliament or the Lok Sabha. It can neither be introduced in Rajya Sabha nor can be referred to a Joint Committee of both houses. A Bill is considered a Money Bill when it pertains only to financial matters like taxation, government revenues, public expenditures and government borrowings.
Once the bill is passed by the Lok Sabha, it is sent to the upper house which needs to return it with or without recommendations within 14 days. The Lok Sabha can either accept or reject the recommendations of the Rajya Sabha if any. However, if the bill is not returned by Rajya Sabha within 14 days, it is considered to have been passed by both houses of Parliament.
It must be noted that a Finance Bill is a Money Bill as per Article 110, but a Money Bill doesn't necessarily have to be a Finance Bill.
What is the purpose of the Finance Bill?
The Finance Bill is introduced in the lower house right after the Union Budget is announced. When the government proposes changes in taxes such as remission, abolition, alteration, regulation, and imposition of new taxes, the Finance Bill gives effect to these proposals for the upcoming financial year.
The bill makes the required amendments to the laws dealing with the various taxes and eliminates the need to bring a separate amendment law for each purpose.
The Finance Bill becomes the Finance Act after it is passed in both houses of the Parliament and gets the assent of the President. The President can either withhold or give his assent to the Money Bill. He cannot return the Money Bill to the House.