Question

Define Finance Bill.

Hint:

Budget day trio: Annual Financial Statement (Art.112), Appropriation Bill (authorises spending) and Finance Bill (implements tax changes).

Answer 1

A Finance Bill contains provisions to impose, abolish or modify taxes and allied fiscal measures. Usually it is a Money Bill under Article 110 and hence introduced only in the Lok Sabha on the President’s recommendation. After passing both Houses (Rajya Sabha has a 14-day recommendatory role), it receives assent and becomes the Finance Act (≈58 words).