Part VI - The States • Article

Article 207 Simplified: Special provisions as to financial Bills

Article 207 is the 'Governor's permission slip' for financial Bills in State Legislatures. Any Bill or amendment touching the financial matters listed in Article 199(1)(a)-(f) must have the Governor's prior recommendation before it can be introduced—and it can only be introduced in the Assembly (not the Council). Exception: amendments that reduce or abolish taxes don't need a recommendation. Also, any Bill that would cause Consolidated Fund expenditure must have the Governor's recommendation before it's passed.

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 199 shall not be introduced or moved except on the recommendation of the Governor, and a Bill making such provision shall not be introduced in a Legislative Council: 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 a State shall not be passed by a House of the Legislature of the State unless the Governor has recommended to that House the consideration of the Bill.

Simple Meaning

Explain Like Ten

Imagine money matters are so serious that only the principal (Governor, representing the government) can start the conversation about them. An MLA can't just stand up and say 'let's add a new tax'—the Governor must say 'okay, let's discuss this' first. But if an MLA wants to say 'let's reduce a tax,' that's fine—you don't need the principal's permission to reduce a burden. And any Bill that costs money from the State's main account also needs the Governor's okay before it can pass.

Student Mode

Article 207 mirrors Articles 117 and 274 (Parliament's equivalents). Three key rules: (1) Bills/amendments covering Article 199(1)(a)-(f) matters (taxation, borrowing, Consolidated Fund etc.) need Governor's recommendation before introduction—and cannot be introduced in the Council; (2) Exception: no recommendation needed to reduce or abolish a tax; (3) Any Bill that would cause expenditure from the Consolidated Fund needs the Governor's recommendation before the House passes it (not just introduces it).

Example

If an MP in the Andhra Pradesh Assembly wants to move an amendment increasing a state tax, they need the Governor's nod first. But if an opposition MLA moves an amendment to reduce a tax by 2%, no Governor recommendation is needed—that exception protects the legislature's right to reduce tax burdens without executive approval.

Key Takeaway

Article 207 ensures the executive (Governor) controls the initiation of financial legislation—preventing legislators from independently creating tax or expenditure measures without government backing.

FAQs

Does every amendment touching financial matters need a Governor's recommendation under Article 207?

No. The proviso to Article 207(1) explicitly exempts amendments that reduce or abolish a tax from the recommendation requirement. Only amendments that impose, alter (upward), or regulate a tax in a money-bill manner need the recommendation.

What is the difference between the recommendation requirement for introduction (clause 1) and for passing (clause 3)?

Clause (1) requires recommendation before introduction of a Bill dealing with Article 199(1)(a)-(f) matters. Clause (3) requires recommendation before a House passes any Bill that would cause Consolidated Fund expenditure—the trigger is different (expenditure, not just tax/borrowing).

Quiz

Under Article 207, which of the following does NOT require a Governor's recommendation before it can be moved?

Answer: An amendment reducing a tax

Under Article 207(1), where can a financial Bill requiring the Governor's recommendation NOT be introduced?

Answer: The Legislative Council