Part V - Parliament • Article

Article 117 Simplified: Special provisions as to financial Bills

Article 117 says that any law that involves spending money or changing taxes cannot even be *introduced* in Parliament unless the President recommends it. This prevents random MPs from proposing laws that would bankrupt the country.

Official Text

(1) A Bill or amendment making provision for any of the matters specified in sub-clauses (a) to (f) of clause (1) of article 110 shall not be introduced or moved except on the recommendation of the President and a Bill making such provision shall not be introduced in the Council of States: Provided that no recommendation shall be required under this clause for the moving of an amendment making provision for the reduction or abolition of any tax. (2) A Bill or amendment shall not be deemed to make provision for any of the matters aforesaid by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes. (3) A Bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of India shall not be passed by either House of Parliament unless the President has recommended to that House the consideration of the Bill.

Simple Meaning

Explain Like Ten

Any rule that involves spending the country's money or changing taxes cannot just be proposed by any MP. It needs the President's prior okay before they can even talk about it, and it usually must start in the Lok Sabha.

Student Mode

Article 117 classifies Financial Bills: (1) Financial Bill (I): deals with tax and borrowing under Article 110(1) but also contains general legislative matters. Like a Money Bill, it can only be introduced in the Lok Sabha and requires the President's recommendation. However, Rajya Sabha can amend or reject it. (2) Financial Bill (II): deals with general matters but involves expenditure from the Consolidated Fund. It can be introduced in either House, does not require recommendation for introduction, but cannot be passed by either House unless the President has recommended its consideration (Article 117(3)).

Example

A bill proposing a new tax (Financial Bill Category I) cannot be introduced in Rajya Sabha or without the President's recommendation. However, a bill that merely involves spending from the Consolidated Fund (Category II) can start in either House, but requires recommendation before voting under Article 117.

Key Takeaway

Financial laws need a prior 'okay' from the President to be introduced.

FAQs

What is the difference between Financial Bill Category I and Category II?

Category I bills contain matters of Article 110 but also other general laws; they must start in Lok Sabha with President's recommendation. Category II bills do not contain Article 110 matters but involve expenditure; they can start in either House and only need President's recommendation before final voting.

Can the Rajya Sabha amend a Financial Bill?

Yes. Unlike Money Bills (where Rajya Sabha can only make non-binding recommendations), both types of Financial Bills under Article 117 can be amended or rejected by the Rajya Sabha, and deadlocks can be resolved via a joint sitting.

Is the President's recommendation required to introduce a bill reducing or abolishing a tax?

No. The proviso to Article 117(1) states that no recommendation is required for amendments or bills that reduce or abolish a tax.

Quiz

A Financial Bill under Article 117(1) (Category I) can be introduced:

Answer: Only in the Lok Sabha

For which of the following is the President's recommendation NOT required under Article 117?

Answer: Reducing or abolishing an existing tax