The fundamental difference between a money bill and a finance bill is that a money bill can be introduced in only the lower house of parliament, i.e. Lok Sabha only, finance bill can be introduced in either of the two houses. Although money bill is a type of finance bill, most people use them interchangeably, but they differ in terms of their content
Definition of Money Bill
Money Bills as the name suggests, are the bills concerned with the provisions solely dealing with all or any of the matters prescribed in article 110 (1).
It encompasses matters relating to the levying, abrogation, and regulation of taxes, regulation of government borrowing, the protection of Consolidated or Contingency Fund and inflow or outflow of money from any such funds, appropriation of money from Consolidated Fund of India, and so forth.
After obtaining the assent of the president of India, the bill was introduced in the House of people i.e. Lok Sabha, which is certified as a money bill by the Speaker, and then passed to Rajya Sabha for the recommendation of amendments.
Further, the Rajya Sabha can keep the bill, for a maximum of 14 days, or else it is deemed to be passed by both houses.
The Lok Sabha has the authority to accept or reject the suggestions given by the Rajya Sabha.
Definition of Finance Bill
A bill proposed in Lok Sabha every year, just after the declaration of Union Budget for the upcoming year, to undertake the proposals made by the Government, is known as Finance Bill.
It refers to any bill that contains matters relating to the revenue and expenditure of the country. It takes into account the imposition of new taxes, alteration in the existing tax structure or continuance of the older one, beyond the term asserted by the Parliament are presented via finance bill.
A memorandum comprising of explanations of the provisions covered is enclosed with the bill. The bill has to be enacted by the Parliament within 75 days of its introduction. The finance bill is classified into two categories, which is described as under:
Category A: The bill covers the provisions of Article 110 (1) of the Constitution of India. It can be originated only in Lok Sabha, after the assent of the President of the country.
Category B: It contains clauses relating to the expenditure from the Consolidated Fund of India. Such bills can be introduced in any of the two houses. Prior approval of the President is a must, for consideration of the bills.