Article 117 of the Indian Constitution deals with special provisions relating to Financial Bills. It lays down procedural requirements that differentiate certain financial legislation from ordinary bills, primarily concerning the necessity of the President’s recommendation and the originating House of Parliament. Article 117(1) specifically addresses a significant category of Financial Bills, defining which ones require the President’s prior approval for introduction and establishing the Lok Sabha as the exclusive house for their initiation.
This article is fundamental to understanding the legislative process concerning the Union’s finances, taxes, and appropriation of funds. It underscores the unique role of the Executive (represented by the President acting on the advice of the Council of Ministers) and the Lok Sabha in matters involving the Consolidated Fund of India and government revenue and expenditure.
Original 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 in either House of Parliament without 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 any amendment making provision for the reduction or abolition of any tax.
Detailed Explanation
Article 117(1) establishes specific conditions that must be met before certain types of Financial Bills can be introduced in Parliament.
The first part of the article states that a Bill or an amendment that makes provision for any of the matters listed in Article 110(1)(a) to (f) requires the recommendation of the President to be introduced or moved in either House of Parliament. The matters specified in Article 110(1)(a) to (f) are: (a) the imposition, abolition, remission, alteration or regulation of any tax; (b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India; (c) the custody of the Consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund; (d) the appropriation of moneys out of the Consolidated Fund of India; (e) theoplevel accounts of the Union or of a State; or (f) any matter incidental to any of the matters specified in sub-clauses (a) to (e).
Essentially, Article 117(1) applies to any Bill dealing with these core financial matters. This category of bills is often referred to as Financial Bills Type I.
The second part of the article specifies that a Bill containing such provisions (i.e., those specified in Article 110(1)(a) to (f)) shall not be introduced in the Council of States (Rajya Sabha). This implies that such Bills can only be introduced in the House of the People (Lok Sabha). This reinforces the principle that the Lok Sabha, whose members are directly elected by the people, holds the primary authority in initiating legislation related to government revenue and expenditure, including taxation and appropriation of funds.
The proviso attached to clause (1) creates an exception: a recommendation from the President is not required for moving an amendment that provides for the reduction or abolition of any tax. This allows members to propose amendments aimed at reducing the tax burden without needing prior executive approval, reflecting a degree of flexibility for the legislature in such matters.
In summary, Article 117(1) mandates that any Bill containing provisions similar to those defined for Money Bills (though not necessarily certified as a Money Bill under Article 110(3)) must first receive the President’s recommendation and can only be introduced in the Lok Sabha.
Detailed Notes
- Scope: Article 117(1) applies to any Bill or amendment making provision for matters listed in Article 110(1)(a) to (f).
- Mandatory Recommendation: Such a Bill or amendment cannot be introduced or moved in either House of Parliament without the President’s recommendation.
- Originating House: A Bill making such provision cannot be introduced in the Council of States (Rajya Sabha).
- Implication for Originating House: Consequently, such a Bill must be introduced in the House of the People (Lok Sabha).
- Matters Covered (from Art 110(1)(a)-(f)): These include taxation, government borrowing, custody and withdrawal from Consolidated Fund/Contingency Fund, appropriation from Consolidated Fund, public accounts, audit, and related incidental matters.
- Distinction from Money Bills: While Money Bills are a subset of Bills falling under Article 110(1)(a)-(f) and certified by the Speaker under Article 110(3), Article 117(1) applies to all Bills containing any of these provisions, whether certified as Money Bills or not.
- Legislative Procedure Post-Introduction: Once introduced in Lok Sabha after President’s recommendation, a Bill covered by Article 117(1) (if not a certified Money Bill) follows the legislative procedure for ordinary bills, allowing the Rajya Sabha to discuss and amend it, unlike the restricted powers of Rajya Sabha concerning certified Money Bills (as per Article 109).
- Exception in Proviso: President’s recommendation is not required for moving an amendment that proposes the reduction or abolition of any tax.
- Purpose: Ensures executive clearance (via President’s recommendation) for initiating significant financial legislation and upholds the Lok Sabha’s primacy in matters involving the Union’s finances and revenue.
Additional Comments
- Article 117 distinguishes between different types of Financial Bills. Article 117(1) covers Financial Bills Type I, which are bills that contain provisions specified in Article 110(1)(a)-(f).
- Article 110 deals specifically with ‘Money Bills’, which are a special category of Financial Bills Type I certified by the Speaker. Money Bills have a more stringent procedure outlined in Article 109, significantly limiting the Rajya Sabha’s powers.
- Financial Bills Type I (under Article 117(1) but not certified as Money Bills) require the President’s recommendation for introduction and must originate in the Lok Sabha, similar to Money Bills. However, the Rajya Sabha has full powers to amend these bills, and disagreements can lead to a joint sitting of Parliament (unlike Money Bills where there is no provision for a joint sitting as Lok Sabha can override Rajya Sabha’s suggestions).
- Article 117(3) deals with Financial Bills Type II, which are bills that involve expenditure from the Consolidated Fund of India but do not contain any of the provisions specified in Article 110(1)(a) to (f). These bills do not require the President’s recommendation for introduction and can originate in either House, but they cannot be passed by either House unless the President has recommended consideration of the Bill.
- Understanding the interplay between Articles 109, 110, and 117 is crucial for comprehending the Indian Parliament’s financial legislative procedure and the distribution of powers between the Lok Sabha and the Rajya Sabha regarding financial matters.
Summary
A Bill containing provisions specified in Article 110(1)(a) to (f), covering matters such as taxation, government borrowing, and the management of the Consolidated Fund of India, requires the recommendation of the President for its introduction or consideration in Parliament. Such a Bill cannot be introduced in the Rajya Sabha and must originate solely in the Lok Sabha. However, President’s recommendation is not needed for amendments proposing the reduction or abolition of a tax. This article governs a broad category of Financial Bills (Type I), ensuring executive consent for their initiation and establishing the Lok Sabha’s primary role in their introduction.