Legislative Procedure: Types of Bills and Passage in Indian Parliament

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Legislative proposals are presented to parliament as bills. A bill can be broadly classified into two categories, depending upon who introduced it in the parliament.

  • Private Bill: If a bill is introduced by a member other than ministers, it is called a private bill. An advance notice of one month needs to be given before introduction of such a bill in the parliament.
  • Public Bill: This is commonly referred to as a government bill and is presented by a minister in parliament. An advance notice of seven days needs to be given before introduction of such a bill in the parliament.

Bills can also be classified on the basis of procedure adopted in the Parliament for its passage. The following are types of bills categorized based on this classification:

  • Ordinary Bills: These bills are concerned with general matters enumerated in the Central list or Concurrent list in the Seventh schedule of the constitution. Examples- The Wildlife Protection (Amendment) Bill 2021 , National Anti-doping Bill 2021, The Indian Antarctic Bill 2021, etc.
  • Money Bills: Bills that contain only provisions related to any or all matters outlined in Article 110 of the Constitution are termed money bills. Article 110 mentions specific matters like the imposition, abolition, remission, alteration or regulation of any tax, the appropriation of money out of the Consolidated Fund of India, among others.
Provisions under article 110

A Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely:

(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) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;

(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or

(g) any matter incidental to any of the matters specified in sub-clauses (a) to (f).

 

Difference between an ordinary bill and a money bill

Money Bill Ordinary Bill
It can only be introduced in Lok Sabha It can be introduced in both the Houses of the Parliament
It can only be introduced by a minister It can be introduced by any member of Parliament
It can only be introduced on the recommendation of the President No such recommendation is required
It cannot be amended or rejected by the Rajya Sabha. Rajya Sabha can only make  recommendations on the bill, which may or may not be accepted by the Lok Sabha It can be amended or rejected by the Rajya Sabha
Rajya Sabha can hold this bill for 14 days maximum. Rajya Sabha can hold this bill for six months maximum.
Certification by the Speaker of Lok Sabha is necessary to send it to Rajya Sabha. No such certification is required. 
Passage of the bill by Rajya Sabha is not mandatory for  sending a bill for Presidential assent. (Money bill is deemed to be passed by both the houses even if Rajya Sabha do not agree to its provisions within 14 days) The bill must be passed by Rajya Sabha before the bill is sent to get Presidential Assent.
No provision of Joint Session for this bill If there is a deadlock between the two houses over a bill, the President may call for a Joint Session and the bill has to get passed in the Joint Session before Presidential Assent.
If this bill is defeated in Lok Sabha, it may lead to resignation of the government. If the bill is introduced by a minister in Lok Sabha, its rejection by the Lok Sabha may lead to resignation of the government
The President can either reject the bill or approve the bill. The President cannot return the bill for reconsideration The President can approve, reject, or return the bill for reconsideration of the Parliament. 

 

    • Financial Bills: Finance bills are introduced in the parliament to give effect to the financial proposals of the Union Government. These can be classified as follows:
      • Category A: These types of financial bills contain not only provisions dealing with any of the matters specified in Article 110  but also other matters of general legislation.
  • Category B: These types of financial bills involve expenditure from the consolidated fund of India.

Difference between money bills and finance bills

Money Bill Financial Bill
Financial Bill- A Financial Bill- B
President’s prior recommendation needed President’s prior recommendation needed President’s prior recommendation not needed
Rajya Sabha cannot amend, or reject the bill Rajya Sabha can reject or amend the bill Rajya Sabha can reject or amend the bill
Speaker certify if a bill is money bill or not No such certification required No such certification required
It can only be introduced in Lok Sabha It can only be introduced in Lok Sabha It can be introduced in both Lok Sabha and Rajya Sabha
No provision for Joint Session  President can summon a Joint Session to resolve any deadlock President can summon a Joint Session to resolve any deadlock
Article 110 Article 117 (1) Article 117 (3)
It contain provisions dealing with any of the matters specified Article 110 (1) It contain provisions dealing with any of the matters specified Article 110 (1) and other matters of general legislation This bill involves expenditure from the Consolidated Fund of India.
  • Constitution Amendment Bills: These types of bills deal with amending the provisions of the Constitution. E.g. The Constitution (101st Amendment) Act added new articles related to the Goods and Services Tax (GST) to the Constitution. 

Here are the characteristics of Constitution amendment bills:

  • There is no need for prior recommendations from the President for the introduction of this bill. This bill can be introduced in either of the Houses of Parliament. 
  • The President is not allowed to refuse assent to this bill.
  • In case there is a disagreement over the bill, there is no provision for Joint Sitting of the two houses.

Legislative Procedure in the Parliament

The process for a bill to become an act of parliament varies based on the type of bill. Following are the steps involved in passage of an ordinary bill.

  • Step 1 – First Reading

      • A member of parliament must seek permission from the house to propose a motion for the introduction of a bill. After getting the permission, a bill is introduced in the house. 
      • A member who has introduced the bill, reads its title and objectives. 
      • There is no discussion on the bill at this stage. 
      • Once introduced in parliament, the bill is published in the gazette. 
      • Introduction of a bill and its publication constitutes first reading of the bill.
  • Step 2- Second Reading

      • Once a Bill has been introduced, it may either directly be taken up for discussion in the House or may be referred to a Parliamentary Committee for scrutiny. 
      • If the bill is referred to a committee, the discussion on a bill takes place after the concerned committee submits its report to the parliament. 
      • Detailed clause by clause discussion on the bill takes place at this stage. 
      • Members can also move amendments to the clauses of a bill. If these amendments are accepted by the house, they are incorporated into the bill.
  • Step 3 – Third Reading

      • At this stage the bill is simply put to vote for acceptance or rejection. 
      • At this stage, no amendments can be proposed or accepted. 
      • If the bill is passed by a majority of the members present and voting i.e. simple majority, the bill is transferred to another house.
  • Bill in other house

      • Bill when transmitted to the other house of the parliament, goes through the same steps mentioned above. 
      • If the other house passes the bill with a simple majority, the bill is then transferred to the President for his/her assent. If the President assents the bill, it becomes an act of the parliament.
  • President’s assent

    •  If the President assents the bill passed by both the houses of parliament, it becomes an act of the parliament.

However, if the other house of parliament disagrees with the provisions of a bill passed by the previous house, there arises a deadlock between two houses of parliament. Such a deadlock may arise due to following conditions: 

  • Disagreement: The other house of the parliament may suggest amendments to the bill which may not be acceptable to the previous house where the bill has originated or 
  • Rejection: Otherwise, the option is to reject the bill entirely, or 
  • Inaction: The other does not take any action on the bill for six months.  

The Constitution under article 108 provides for joint sitting of two houses in order to resolve such a deadlock.

Joint Sitting

  • Summoning of Joint sitting: The President can summon a joint sitting of the parliament under article 108 to resolve a deadlock between two houses of the parliament. 
  • Presiding officer
    • The joint sitting is presided over by the Speaker of Lok Sabha. In the absence of the Speaker it was presided over by the Deputy Speaker of the Lok Sabha. 
    • If the Deputy Speaker is absent as well, the Deputy Chairman of the Rajya Sabha oversees the joint session. 
    • The Presiding officer of the joint session, in case of  absence of the Speaker, Deputy Speaker and Deputy Chairman, is decided by the members present in the joint sitting.
  • Amendments to bill: There are two conditions proposed by the Constitution under which new amendment/s to the concerned bill can be proposed:
    • The amendments that have caused the disagreement which led to the Joint Sitting.
    • Amendment which became necessary due to delay in the passage of the bill.
  • Rules of procedure: Rules of procedure of the Lok Sabha are followed in the proceedings of a joint sitting.
  • Required majority: The bill in a joint sitting is passed with the majority of members present and voting i.e., simple majority.
  • Examples: Since independence, only three bills have been referred for a joint sitting. These three bills are:
    • Dowry Prohibition Bill, 1961 
    • Banking Service Commission (Repeal) Bill, 1978 
    • Prevention of Terrorism Bill, 2002
  • Exception: The provision of joint sitting is not available if the bill is a money bill or a constitution amendment bill.

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