Types of Bills in India- Definitions, Differences

There are four types of bills that are introduced in the Indian Parliament for different purposes.
The table below mentions the different types of bills and their significance:

Types of Bills in India

S.No Name of the Bill Significance

1 Ordinary Bill (Article 107, Article Concerned with any matter other than financial subjects
108)

2 Money Bill (Article 110) Concerned with financial matters like taxation, public
expenditure, etc

3 Financial Bill (Article 117 [1], Article Concerned with financial matters (but are different from
117[3]) money bills)

4 Constitutional Amendment Bill Concerned with the amendment of the provisions of the
(Article 368) Constitution.

Difference Ordinary Bill Money Bill

Introduction In either Lok Sabha or Rajya Sabha Only in Lok Sabha

Introduced By Minister or a Private Member Only a Minister

President’s Not Need Only after he recommends

Recommendation

Rajya Sabha’s Role  Can be amended/rejected by  Cannot be amended/rejected by

Rajya Sabha Rajya Sabha. (It has to return the bill
  with/without recommendations)

 Can be detained by the Rajya  Can be detained by the Rajya Sabha

Sabha for a maximum period for a maximum period of 14 days
of six months. only.

President’s Assent Sent for his assent only after being Send for his assent only after Lok Sabha’s
approved by both the houses approval. (Rajya Sabha approval is not
required)

Can be rejected, approved, or Can be rejected or approved but cannot be

 returned for reconsideration by the returned for reconsideration by the
President. President.

Joint Sitting of Both In case of deadlock, there is a No chance of disagreement, hence, no

Houses provision of a joint sitting provision of a joint sitting

 Difference between Ordinary Bill and Money Bill in India

IAS aspirants before starting to read the legislative process in Indian Parliament must know the
differences between all these bills. These basic differences will help in upcoming UPSC
2020 where questions from this section are expected for both prelims and mains.

What Are The Important Steps in Making of a Law in India?

There are separate procedures for the enactment of the four types of bills. These procedures to
enact the bills are laid down by the Indian Constitution. They are given below:

 Stages of passing an Ordinary Bill

There are five stages through which an ordinary bill has to go through before it finally becomes
an act:

Stages Details

First Reading A minister or a member introduces the bill in either house of the Parliament. He asks for
leave before introducing the bill. He reads the title and objective of the bill.

After the introduction, the bill is published in the Gazette of India

Note:

1. No discussion on the bill takes place in this stage

2. If the bill is published in the Indian Gazette before its introduction, the
minister/member does not have to ask for leave

Second Reading Stage of General Discussion- Four actions can be taken by the house on the bill:

1. It may take the bill into consideration immediately or on some other fixed date
2. It may refer the bill to a select committee of the House
3. It may refer the bill to a joint committee of the two Houses
 4. It may circulate the bill to elicit public opinion

Note:

1. Select Committee- Has members of the house where the bill is introduced
2. Joint Committee- Has members from both the houses

Committee Stage:

1. Select Committee examines the bill thoroughly and in detail, clause by clause.
2. It can also amend its provisions, but without altering the principles underlying it.
3. After completing the scrutiny and discussion, the committee reports the bill back
to the House.

Consideration Stage:

1. The House, after receiving the bill from the select committee, considers the
provisions of the Bill clause by clause.
2. Each clause is discussed and voted upon separately.
3. The members can also move amendments and if accepted, they become part of
the bill.

Third Reading One of the two actions take place:

1. Acceptance of the Bill (If the majority of members present and voting accept the
bill, the bill is regarded as passed by the House)
2. Rejection of the Bill

Note:

1. No amendments to the bill are allowed

2. A bill is deemed to have been passed by the Parliament only when both the
Houses have agreed to it, either with or without amendments.

Bill in the The first three stages are repeated here i.e.:
Second House
1. First Reading
2. Second Reading
3. Third Reading

The second house can take one of the four actions:

1. It may pass the bill as sent by the first house (ie, without amendments)
2. It may pass the bill with amendments and return it to the first House for
reconsideration
 3. It may reject the bill altogether
4. It may not take any action and thus keep the bill pending

Note:

1. The bill is deemed to have been passed if both the houses accept the bill and the
amendments
2. If the second house takes no action for 6 months, a deadlock appears which is
acted upon through a joint sitting (summoned by President) of both the houses

Assent of the One of the three actions can be taken by him:

President
1. May give his assent to the bill (The bill becomes an act and is placed on statute
book)
2. May withhold his assent to the bill (The bill ends and does not become an act)
3. May return the bill for reconsideration (The houses can/cannot make
amendments and send it back to the President after which he has to give assent)

Note:
President only enjoys ‘Suspensive Veto.’ Check Powers of President of India here.

 Stages of passing a Money Bill

Money Bill in India

Unlike Ordinary Bill, Money bill is introduced only in Lok Sabha on the recommendation of President which is
a must.

The bill, moved on the recommendation of the President and introduced in the Lok Sabha is termed as a
government bill.

Note: All government bills are introduced only by the minister.

After Lok Sabha passes the bill, it is moved to Rajya Sabha which has only restricted powers. It cannot reject
or amend the bill.

Note:

1. Rajya Sabha has to return the bill within 14 days with or without recommendations of the
amendments
2. If it does not return the bill within the prescribed days, the bill is deemed to have been passed
3. Lok Sabha may or may not accept the amendments.
After passing through both the houses, the President’s assent is required. He can take two actions:

1. Give assent
2. Withhold assent

Note: President can’t return the bill for reconsideration

After President’s assent, the bill becomes the act and is published in the Indian Statute Book. IAS aspirants
can check more on money bill in the linked article.

 Stages of passing a Constitutional Amendment Bill

Constitutional Amendment Bill

Introduction In either house of the parliament

Note:
Can’t be introduced in the state legislatures

Introduced by Either by a minister or by a private member

Note:
It does not require prior permission of the president.

Majority Needed Must be passed in each House by a special majority, that is, a majority (that is, more
than 50 per cent) of the total membership of the House and a majority of two-thirds of
the members of the House present and voting

Joint Sitting There is no provision for joint sitting in case of deadlock

Role of State If the bill seeks to amend the federal provisions of the Constitution, it must also be
Legislature ratified by the legislatures of half of the states by a simple majority, that is, a majority of
the members of the House present and voting

President’s He must give his assent

Assent
Note:

1. He can’t return the bill

 2. He can’t withhold the bill unlike in the case of ordinary bills

After President’s assent, the bill becomes a Constitutional Amendment Act and the Constitution stands
amended in accordance with the terms of the Act