Every law in India begins as a proposal in the form of a Bill, and the Constitution recognises several types of bills, each with its own procedure and its own balance of power between the Lok Sabha and the Rajya Sabha. Knowing the types of bills is essential for understanding how Parliament works, why some laws pass quickly and others stall, and why the Rajya Sabha has a very different role in different kinds of legislation.
The main categories are ordinary bills, money bills under Article 110, financial bills under Article 117, and constitutional amendment bills under Article 368. Bills are also classified by who introduces them, as government bills or private member bills. This explainer describes each type, the procedure that governs it, and the path a bill takes to become law.
Quick Facts
| Feature | Details |
|---|---|
| Main types | Ordinary, Money, Financial and Constitutional Amendment bills |
| Money bill provision | Article 110 (definition), Article 109 (special procedure) |
| Financial bill provision | Article 117 |
| Constitution amendment | Article 368 |
| Joint sitting | Article 108 (not for money or constitutional amendment bills) |
| Presidential assent | Article 111 |
| Who certifies a money bill | The Speaker of the Lok Sabha; the decision is final |
| Rajya Sabha time limit on money bills | Fourteen days to return the bill |
What Is a Bill and How Is It Classified?
A bill is a draft of a proposed law presented before Parliament. It becomes an Act only after it has been passed by Parliament in the prescribed manner and has received the assent of the President. Until then, it is merely a proposal, and it can be amended, rejected or allowed to lapse.
Bills can be classified in two broad ways. The first is by subject matter and procedure, which gives ordinary, money, financial and constitutional amendment bills. The second is by the person introducing the bill, which gives government bills and private member bills. The two classifications overlap, because a government bill may be an ordinary bill or a money bill, and a private member bill may be an ordinary bill or a constitutional amendment bill.
A quick comparison
| Type | Introduced in | Rajya Sabha power | Joint sitting |
|---|---|---|---|
| Ordinary | Either House | Full | Yes |
| Money | Lok Sabha only | Recommendations only, within 14 days | No |
| Financial (Category I) | Lok Sabha only | Full | Yes |
| Financial (Category II) | Either House | Full | Yes |
| Constitutional amendment | Either House | Equal to Lok Sabha | No |
Ordinary Bills
An ordinary bill covers any subject other than those that fall in the special categories of money, financial or constitutional amendment bills. Most legislation, such as laws on education, criminal justice, environment, labour or consumer protection, passes as ordinary bills.
Where and how they are introduced
An ordinary bill can be introduced in either House of Parliament by a minister or by a private member. After introduction, it moves through the stages of first reading, second reading (including committee and report stages) and third reading, and then goes to the other House, where it passes through the same process.
Equal powers of both Houses
The Lok Sabha and the Rajya Sabha have equal powers over ordinary bills, in the sense that neither can pass them without the other’s concurrence. If the two Houses disagree, the deadlock is resolved by a joint sitting under Article 108. This is a notable difference from the money bill, where the Lok Sabha has the final word.
Disagreement between the Houses
A deadlock arises when one House rejects the bill, when the Houses finally disagree on amendments, or when more than six months pass without the other House passing it after it was received. The President may then summon a joint sitting of both Houses, presided over by the Speaker, and the bill is decided by a majority of the total members of both Houses present and voting. Joint sittings have been held only a few times, in 1961 (the Dowry Prohibition Bill), in 1978 (the Banking Service Commission Repeal Bill) and in 2002 (the Prevention of Terrorism Bill).
Money Bills (Article 110)
A money bill is a special category defined in Article 110. A bill is a money bill if it contains only provisions dealing with certain financial matters. These include the imposition, abolition, remission, alteration or regulation of any tax, the regulation of government borrowing, the custody of the Consolidated Fund or the Contingency Fund of India, the appropriation of money from the Consolidated Fund, the declaration of any expenditure as charged on that Fund, and the receipt, custody, issue or audit of money into or out of those Funds.
The word “only”
The word “only” in Article 110 is critical. A bill is a money bill only if it consists solely of provisions on these matters, or matters incidental to them. A bill that also deals with other subjects does not qualify, which makes the line between money bills and financial bills a subject of occasional controversy.
Common examples
- The Appropriation Bill, which authorises withdrawals from the Consolidated Fund.
- The Finance Bill containing the government’s tax proposals, to the extent that it falls within the Article 110 categories.
- Bills that regulate borrowing by the Union government.
The Special Path of Money Bills and Rajya Sabha Limits
The procedure for money bills is deliberately different, reflecting the constitutional principle that the power of the purse belongs to the directly elected House.
Step by step
- A money bill can be introduced only in the Lok Sabha, and only on the recommendation of the President.
- After the Lok Sabha passes it, the bill is transmitted to the Rajya Sabha for its recommendations.
- The Rajya Sabha must return the bill within fourteen days of its receipt. It cannot reject or amend it, but it may recommend amendments.
- The Lok Sabha may accept or reject any or all of the recommendations. If it accepts, the bill is deemed passed with those changes; if it rejects them, the bill is deemed passed in its original form.
- If the Rajya Sabha does not return the bill within fourteen days, it is deemed to have been passed by both Houses in the form in which the Lok Sabha passed it.
No joint sitting
Since the Lok Sabha prevails, there is no occasion for a joint sitting on a money bill. The role of the Rajya Sabha is therefore advisory and delaying rather than decisive, a feature that reflects the Westminster tradition from which the Indian arrangement is derived.
The Speaker’s Certification
When a bill is transmitted from the Lok Sabha to the Rajya Sabha and to the President, it is endorsed with the certificate of the Speaker that it is a money bill. Under Article 110(3), if any question arises whether a bill is a money bill or not, the decision of the Speaker of the Lok Sabha is final.
Why this matters
Because the Speaker’s decision is final, the classification decides the Rajya Sabha’s powers: a bill certified as a money bill can effectively bypass the Rajya Sabha’s veto. There have been occasional disputes about whether bills that include non-financial provisions were correctly treated as money bills. The constitutional challenge to the Aadhaar Act, 2016, which had been passed as a money bill, is a notable example; the Supreme Court in its 2018 decision upheld the classification by majority, although a dissenting judge disagreed with it. The matter of the finality of the Speaker’s certificate and its judicial review has remained a topic of legal discussion.
The principle behind the rule
The provision is aimed at ensuring that financial legislation, which is essential for running the government, cannot be held up by the second chamber, which represents the states and is not subject to dissolution.
Financial Bills (Article 117)
Financial bills are a wider category than money bills. They are bills that deal with financial matters, but which are not exclusively concerned with the matters listed in Article 110. Article 117 divides them into two types.
Category I: Article 117(1)
These bills contain provisions relating to the Article 110 matters, such as taxation, and also contain other provisions. They resemble money bills in that they can be introduced only in the Lok Sabha and only on the recommendation of the President. However, they differ in one crucial way: the Rajya Sabha has full powers over them, and it can amend or reject them. A deadlock can lead to a joint sitting.
Category II: Article 117(3)
These bills contain provisions that would involve expenditure from the Consolidated Fund of India, but that do not relate to Article 110 matters. They can be introduced in either House, and the President’s recommendation is needed not for introduction but for consideration. If the recommendation is not received, the House cannot pass the bill.
Why the distinction exists
The financial bill is therefore a bill that has some financial element but is treated more like an ordinary bill in terms of the Rajya Sabha’s powers. The distinction ensures that only truly financial legislation receives the special money bill treatment.
Constitution Amendment Bills (Article 368)
A Constitution amendment bill seeks to change the text of the Constitution itself. Article 368 gives Parliament the power to amend the Constitution by way of addition, variation or repeal, and it prescribes a more demanding procedure than for ordinary legislation.
Procedure
- The bill can be introduced in either House, and does not need the prior recommendation of the President.
- It must be passed in each House by a majority of the total membership of that House and by a majority of not less than two-thirds of the members present and voting.
- For amendments that affect the federal structure, such as the representation of states in Parliament, the election of the President, or the distribution of legislative powers between the Union and the states, the amendment must also be ratified by the legislatures of not less than half of the states.
- After passage, the bill is presented to the President, who must give assent. The 24th Amendment (1971) made this assent mandatory.
Role of the Rajya Sabha
The Rajya Sabha has equal power with the Lok Sabha on a constitutional amendment, and there is no provision for a joint sitting to resolve a deadlock. This makes the Rajya Sabha a genuine check on changes to the Constitution. Some amendments are not subject to Article 368 and can be passed by a simple majority, for example changes to state boundaries under Article 4.
Government Bills and Private Member Bills
Another way to classify bills is by who introduces them.
Government bills
Government bills are introduced by a minister. They reflect the policy of the government, are normally drafted with the help of the Legislative Department of the Ministry of Law and Justice, and usually receive Cabinet approval before introduction. A notice of seven days is generally required. Because the government normally commands a majority in the Lok Sabha, these bills have a high chance of being passed, and most laws made in India are the result of government bills.
Private member bills
Private member bills are introduced by any member who is not a minister. A notice of one month is required, and time for them is set aside on Friday afternoons during sessions. Very few reach the stage of a full debate and vote, and the number that have become law is extremely small; the last to be enacted was in 1970. Even so, these bills serve to raise issues, express public concerns and signal gaps in the law. Some have had an influence on later government legislation.
Key differences
- A government bill is backed by the executive and passes more often than a private member bill.
- A private member bill has limited time and is rarely taken up in full.
- A money bill or a financial bill can generally be brought only by a minister, since the President’s recommendation is needed.
How a Bill Becomes Law
For an ordinary bill, the journey follows a regular sequence of stages.
Stages in the originating House
- First reading: The bill is introduced, and its title is read. No debate is held at this stage.
- Second reading: The general principles are discussed. The bill may then be taken up clause by clause, referred to a select or joint committee, or sent to a departmentally related standing committee, a system established in 1993.
- Committee and report stage: The committee examines the bill and reports back, and amendments are considered.
- Third reading: The final debate takes place, limited to acceptance or rejection, and the bill is put to the vote.
Other House and assent
The other House follows the same stages. If it passes the bill without amendments, it goes to the President. If it makes amendments, the originating House must agree to them. The President has three options under Article 111: to give assent, to withhold assent, or, in the case of a bill other than a money bill, to return it for reconsideration. If the bill is passed again, with or without amendments, the President must give assent.
Lapse of bills
A bill pending in the Lok Sabha lapses when the House is dissolved, whereas a bill pending in the Rajya Sabha that has not been passed by the Lok Sabha does not lapse, since the Rajya Sabha is a continuing body. A bill that has been passed by both Houses and awaits assent also does not lapse.
Conclusion
The various types of bills in the Indian Parliament reflect a careful division of constitutional functions. Ordinary bills give both Houses an equal say, money bills give the final word to the directly elected Lok Sabha, financial bills fall between the two, and constitutional amendments demand special majorities and sometimes the consent of the states. The Speaker’s certification of a money bill, the joint sitting mechanism, and the President’s assent complete the picture. Understanding these distinctions helps citizens follow legislative debates and appreciate why Parliament uses different routes for different kinds of laws.
Frequently Asked Questions
What are the main types of bills in the Indian Parliament?
The main types are ordinary bills, money bills under Article 110, financial bills under Article 117, and constitutional amendment bills under Article 368. They are also classified as government bills or private member bills, depending on who introduces them.
What is a money bill?
A money bill is a bill that contains only provisions on matters listed in Article 110, such as taxation, government borrowing and the Consolidated Fund of India. It can be introduced only in the Lok Sabha, on the President’s recommendation.
What can the Rajya Sabha do with a money bill?
The Rajya Sabha can only make recommendations, and it must return the bill within fourteen days. The Lok Sabha may accept or reject the recommendations, and if the Rajya Sabha does not return the bill in time, it is deemed passed.
Who decides whether a bill is a money bill?
The Speaker of the Lok Sabha certifies whether a bill is a money bill, and under Article 110(3) the Speaker’s decision is final. The classification has occasionally been questioned in court.
How is a constitutional amendment bill passed?
It must be passed in each House by a majority of the total membership and by two-thirds of the members present and voting. Where federal provisions are affected, ratification by at least half of the state legislatures is also needed before the President gives assent.
What is the difference between a government bill and a private member bill?
A government bill is introduced by a minister and reflects government policy, so it usually passes. A private member bill is introduced by a non-minister, requires a month’s notice, is debated on Friday afternoons, and rarely becomes law.
