Bills, the Budget and Parliamentary Committees
Types of Bills
| Bill | Where introduced | Key points |
|---|---|---|
| Ordinary Bill | Either House | Needs both Houses. Joint sitting possible. |
| Money Bill (Art 110) | Lok Sabha only, on the President's recommendation | The Speaker certifies it. The Rajya Sabha can only recommend changes within 14 days, and the Lok Sabha may reject them. No joint sitting. Deals only with tax, borrowing, Consolidated Fund. |
| Financial Bill (Art 117) | Lok Sabha only (Category I) or either House (Category II) | Contains money provisions but is not a pure Money Bill. Rajya Sabha has equal powers. |
| Constitution Amendment Bill (Art 368) | Either House | Special majority. No joint sitting. |
Stages of an ordinary Bill
- First reading: introduction.
- Second reading: general discussion, committee stage, clause-by-clause (report stage).
- Third reading: final vote.
- The same in the other House. Then assent by the President (Art 111).
Private Members' Bills are taken up on Fridays.
The Budget
- Art 112: the "Annual Financial Statement". Presented by the Finance Minister in the Lok Sabha, normally on 1 February. The Railway Budget was merged with it in 2017. The financial year is April to March.
- Stages: presentation, general discussion, scrutiny by standing committees, voting on Demands for Grants (Lok Sabha only), Appropriation Bill, Finance Bill.
- Vote on Account (Art 116): advance grant for part of the year, usually before a general election.
- Consolidated Fund of India (Art 266(1)): all revenues and loans. Money can be spent from it only with Parliament's approval.
- Expenditure "charged" on it (not voted): salaries of the President, judges, CAG, Chairman of the Rajya Sabha, Speaker, UPSC Chairman, and debt charges.
- Public Account (Art 266(2)): deposits, provident funds. Contingency Fund (Art 267): advance money for unforeseen expenses, controlled by the President.
- The FRBM Act, 2003 sets deficit targets.
Parliamentary committees
| Committee | Members | Notes |
|---|---|---|
| Public Accounts Committee (PAC) | 22 (15 LS, 7 RS) | Examines the CAG's audit reports. Chair is traditionally from the opposition. Oldest financial committee (1921). |
| Estimates Committee | 30 (all from Lok Sabha) | Largest committee. Called the "continuous economy committee". Set up in 1950. |
| Committee on Public Undertakings (COPU) | 22 (15 LS, 7 RS) | Set up in 1964 on the Krishna Menon Committee's advice. |
| Departmentally Related Standing Committees | 24 committees, 31 members each (21 LS, 10 RS) | Scrutinise ministry budgets and Bills. Started 1993. |
| Joint Parliamentary Committee (JPC) | Set up as needed | Ad hoc, for specific issues. |
Keep practising
Notes are only half the work. Test yourself with questions and discuss doubts with other aspirants.
Prepared for exam revision from the Constitution of India and standard sources. Office-holders and recent developments change, so check official sources before relying on them. Found a mistake? Tell us.