Actual Article
Article 117: Special provisions as to financial Bills
- Definition of Financial Bills:
- A Bill or amendment making provision for any of the matters specified in sub-clauses (a) to (f) of clause (1) of Article 110 is called a Money Bill.
- A Bill or amendment making provision for any other financial matter is called a Financial Bill.
- Introduction and Recommendation by the President:
- A Bill making provision for any of the matters specified in sub-clauses (a) to (f) of clause (1) of Article 110, except the imposition, abolition, remission, alteration or regulation of any tax, 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.
- Financial Bills Containing Other Matters:
- 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.
- Procedure for Passing Financial Bills:
- The provisions of Articles 107 and 108 shall apply in relation to a Bill to which this Article applies as they apply in relation to a Bill to which those Articles apply.
UPSC Notes for Article 117
Explanation:
- Definition of Financial Bills:
- Differentiates between Money Bills and Financial Bills, clarifying that Financial Bills include matters beyond those specified for Money Bills but still relate to financial matters.
- Introduction and Presidential Recommendation:
- Requires the President’s recommendation for introducing certain Financial Bills that involve financial matters, ensuring executive oversight.
- Such Bills cannot be introduced in the Rajya Sabha but must be introduced in the Lok Sabha.
- Financial Bills Involving Expenditure:
- Financial Bills involving expenditure from the Consolidated Fund of India require the President’s recommendation before being passed by either House of Parliament.
- Procedure for Passing Financial Bills:
- The procedure for passing Financial Bills follows the same provisions as Articles 107 (introduction and passing of Bills) and 108 (joint sittings of both Houses in certain cases).
Key Points:
- Executive Oversight: Ensures that financial matters involving government expenditure are introduced with the President’s recommendation, aligning with executive policies.
- Legislative Process: Maintains a clear and structured legislative process for Financial Bills, ensuring they are introduced and passed in a manner similar to other significant Bills.
- Clear Differentiation: Differentiates between Money Bills and other Financial Bills, providing clarity on the legislative procedures for each type.
Important Cases and Commissions Related to Article 117
Cases:
- V. Sundaram vs. Union of India (1981): Discussed the procedural aspects of financial legislation and emphasized the importance of following constitutional provisions for introducing and passing Financial Bills.
- S.R. Bommai vs. Union of India (1994): Highlighted the need for legislative and executive coordination in financial matters, reinforcing the principles outlined in Article 117.
Commissions:
- Sarkaria Commission: Analyzed Centre-State financial relations and the importance of clear procedures for financial legislation, including the introduction and passage of Financial Bills.
- National Commission to Review the Working of the Constitution (NCRWC) (2002): Recommended reforms to enhance the efficiency and transparency of financial legislation, ensuring effective legislative scrutiny.
Previous Year Prelims Questions Related to Article 117
- (UPSC Prelims 2017) Which of the following requires the President’s recommendation before introduction in the Parliament?
- A. Constitutional Amendment Bill
- B. Financial Bill involving expenditure from the Consolidated Fund of India
- C. Ordinary Bill
- D. Bill for the creation of a new state Correct Answer: B. Financial Bill involving expenditure from the Consolidated Fund of India
- (UPSC Prelims 2019) A Financial Bill can be introduced in:
- A. Only the Lok Sabha
- B. Only the Rajya Sabha
- C. Either House of Parliament
- D. Joint Sitting of both Houses Correct Answer: C. Either House of Parliament (Note: This applies to Financial Bills not categorized as Money Bills)
Previous Year Mains Questions Related to Article 117
- Mains 2016: “Discuss the significance of Article 117 in the financial administration of India. How does the requirement for the President’s recommendation ensure executive oversight of financial legislation?”
- Mains 2019: “Analyze the procedural differences between Money Bills and Financial Bills as outlined in Articles 110 and 117. How do these procedures reflect the balance of power between the executive and legislative branches?”
Additional Insights:
- Balancing Power: Article 117 ensures a balance between legislative initiative and executive oversight in financial matters, promoting coordinated financial management.
- Efficient Legislative Process: The structured procedure for Financial Bills ensures efficient passage and reduces the potential for legislative gridlock on financial matters.
- Enhanced Accountability: Requiring the President’s recommendation for Financial Bills involving expenditure promotes accountability and alignment with broader fiscal policies.
Understanding Article 117 is crucial for UPSC aspirants as it outlines the special provisions for financial legislation, ensuring a balanced and structured approach to managing financial matters within India’s parliamentary system. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions that govern financial administration.