Legislative Procedure in Parliament

The Legislative Procedure for passing of Bills can be initiated by government ministers or other members. These bills, which can be ordinary, money, financial, or constitutional amendment bills, undergo multiple readings, detailed scrutiny, and voting in both Houses. After approval from both Houses, the bill is sent to the President for final assent. Money bills have a special procedure, being only introduced in the Lok Sabha and having more restrictive rules for amendment and rejection. In this article, you will learn about the Legislative Procedure for passing of Ordinary, Money and Financial Bills, all of which are very important topic for GS Paper-2 Polity & Governance of UPSC CSE Exam. To explore more interesting UPSC Polity concepts similar to Legislative Procedure for passing of Bills, check out other articles of IASToppers.   

Table of Content

• Introduction to Legislative Procedure in India
• Difference between Private Bill and Public Bill
• Process for Ordinary Bills
• Process for Money Bills
• Difference between Money Bill and Finance Bill
• Process for Financial Bills
• Conclusion
• FAQs on Legislative Procedure in Parliament for Passing of Bills

Introduction to Legislative Procedure in India

The Legislative Procedure for passing of Bills is same in both Houses of Parliament.

Public and Private Bills:

• There are two major types of Parliaments bills – public bills (government bills) and private bills.
• They all follow the same basic process and go through identical stages in the House, with differences noted in specific areas.

Classifications of Bills:

Bills introduced in the Parliament can be grouped into four distinct categories:

• Ordinary Bills: These bills relate to any issue outside the scope of financial subjects.
• Money Bills: These bills specifically deal with financial matters such as taxation and public spending.
• Financial Bills: Also dealing with financial matters, these are distinct from money bills.
• Constitution Amendment Bills: These bills deal with proposed changes to the Constitution.

Difference between Private Bill and Public Bill

Public Bills	Private Bills
These bills are proposed by government ministers.	Members of Parliament, excluding ministers, propose these bills.
They embody the policy considerations of the current ruling party.	The viewpoints of opposition parties on public issues are embodied in these bills.
The likelihood of these bills getting approved by Parliament is high.	These bills have a relatively lower chance of getting parliamentary approval.
The rejection of such a bill by the House signifies a lack of parliamentary confidence in the government, possibly leading to its resignation.	The refusal of a private bill by the House doesn’t reflect any lack of parliamentary confidence in the government and won’t result in its resignation.
A notice period of seven days is required before these bills can be introduced in the House.	A longer notice period of one month is required for the introduction of these bills in the House.
The responsibility of drafting these bills lies with the relevant department in collaboration with the law department.	The drafting of these bills is carried out by the member who introduces them.

Each type of bill undergoes unique procedures as laid down by the Constitution for their enactment.

Process for Ordinary Bills

The process of turning an ordinary bill into law involves several stages in the legislative procedure of Parliament.

1. First Reading

• An ordinary bill can be proposed in any House of Parliament by either a minister or another member.
• The presenter must first seek the House’s permission to introduce the bill.
• Once the House consents, the bill is introduced by outlining its title and objectives.
• There’s no discussion at this point, and the bill is later published in the Gazette of India.
• If the bill has already been published in the Gazette, the House’s permission for introduction is not needed.
• The bill’s introduction and its publication constitute the first reading.

2. Second Reading

The second reading is the most crucial stage in the bill enactment process as the bill undergoes both general and detailed scrutiny to take its final form. It has three sub-stages:

• General Discussion Stage: Here, the members receive printed copies of the bill. They discuss the principles and provisions of the bill generally, leaving out the details. The House can choose from four actions:
  • Considering the bill immediately or on a fixed date
  • Sending the bill to a select committee of the House
  • Sending the bill to a joint committee of the two Houses
  • Circulating the bill to collect public opinion
• Committee Stage: Typically, the bill is sent to a select committee of the House for detailed review. The committee can amend the provisions but cannot change the underlying principles. Once reviewed and discussed, the bill is returned to the House.
• Consideration Stage: After receiving the bill from the select committee, the House goes through the bill clause by clause. Each clause is discussed and voted on separately. Members can propose amendments, and if accepted, they are included in the bill.

Third Reading

• During the third reading, the focus of the debate is primarily on either accepting or rejecting the bill as a whole.
• No amendments can be proposed as the bill’s basic principles have been extensively examined during the second reading.
• If the majority of the members present vote in favour of the bill, it is considered as passed by the House.
• The bill is then authenticated by the House’s presiding officer and sent to the second House for review and approval.
• A bill is considered passed by Parliament when it is approved by both Houses, with or without amendments.

Review by the Second House

• The second House also subjects the bill to three stages: first reading, second reading, and third reading.
• The second House has four options:
  • Approve the bill as received from the first House (i.e., without amendments)
  • Approve the bill with amendments and return it to the first House for reconsideration
  • Reject the bill entirely
  • Leave the bill pending without taking any action
• If the second House approves the bill without amendments or the first House accepts the amendments proposed by the second House, the bill is considered passed by both Houses and sent to the president for assent.
• If a deadlock arises, such as if the first House rejects the amendments proposed by the second House, or the second House rejects the bill entirely, or doesn’t act on the bill for six months, the president may call a joint session of the two Houses.
• If the majority of members present at the joint session vote in favour of the bill, it is considered passed by both Houses.

Presidential Assent

• Once a bill is passed by both Houses of Parliament, either individually or in a joint session, it is presented to the president for approval. The president can:
  • Assent to the bill
  • Reject the bill
  • Return the bill for reconsideration by the Houses
• The bill becomes an act and is added to the Statute Book once the president assents.
• If the president rejects the bill, it does not become an act.
• If the president returns the bill for reconsideration, and the Houses pass it again, with or without amendments, the president must assent to the bill. This shows that the president has only a suspensive veto.

Process for Money Bills

• Article 110 of the Constitution provides a definition for money bills. A bill is considered a money bill if it exclusively contains provisions dealing with any of the following:
  • Imposition, abolition, remission, alteration, or regulation of any tax
  • Regulation of the Union government’s borrowing
  • Custody of the Consolidated Fund of India or the Contingency Fund of India, payment of moneys into or withdrawal of money from such funds
  • Appropriation of money from the Consolidated Fund of India
  • Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of such expenditure
  • 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 a state
  • Any matter incidental to any of the matters specified above
• But a bill won’t be classified as a money bill if it exclusively provides for:
  • Levying fines or other monetary penalties or
  • Charging or paying fees for licenses or services.
  • Any local authority or body imposing, abolishing, remitting, changing, or controlling any tax for local purposes.

Money Bill Classification

• The decision of the Lok Sabha Speaker is final if there is a dispute over whether a bill is a money bill.
• In case there’s a dispute over whether a bill is a money bill or not, the decision of the Lok Sabha’s Speaker is considered final and cannot be contested in any court, either house of the Parliament, or by the president.

Procedure for Money Bills

There’s a special process detailed in the Constitution for the passage of money bills in Parliament.

• Only the Lok Sabha, upon the president’s recommendation, can introduce such a bill.
• The bill is always treated as a government bill and must be proposed by a minister.
• Post approval by the Lok Sabha, the bill is forwarded to the Rajya Sabha for evaluation.
• However, the Rajya Sabha’s powers are limited concerning a money bill.
  • It cannot reject or amend the bill but can suggest modifications.
  • It has a deadline of 14 days to return the bill, with or without recommendations, to the Lok Sabha.
• The Lok Sabha then has the discretion to accept or dismiss the Rajya Sabha’s recommendations.
• The bill is deemed passed by both houses in the adjusted form if any recommendation is accepted.
• However, if no recommendations are accepted, the bill is considered approved by both houses in the form initially passed by the Lok Sabha.
• If the Rajya Sabha fails to return the bill within the 14-day timeframe, the bill is assumed to have received approval from both houses in the form initially passed by the Lok Sabha.
• Consequently, the Lok Sabha has more authority over a money bill compared to the Rajya Sabha.
  • However, both houses have equal powers concerning a regular bill.
• Upon receiving a money bill, the president has the option to either approve or withhold his consent.
  • He does not have the authority to send the bill back for reconsideration by the houses.

Difference between Money Bill and Finance Bill

Ordinary Bill	Money Bill
Can be introduced in Lok Sabha or Rajya Sabha	Introduced only in Lok Sabha, not Rajya Sabha
Can be introduced by minister or private member	Introduced only by a minister
Introduced without President’s recommendation	Introduced only on President’s recommendation
Amendable or rejectable by Rajya Sabha	Cannot be amended or rejected by Rajya Sabha
Can be detained by Rajya Sabha for up to 6 months	Can be detained by Rajya Sabha for up to 14 days
No certification of Speaker required when transmitted to Rajya Sabha (if originated in Lok Sabha)	Requires certification of Speaker when transmitted to Rajya Sabha
Sent for President’s assent after approval by both Houses	Sent for President’s assent even if approved by only Lok Sabha, no provision for joint sitting
Defeat may lead to government resignation (if introduced by minister)	Defeat leads to government resignation
Can be rejected, approved, or returned for reconsideration by President	Can be rejected or approved but not returned for reconsideration by President

Process for Financial Bills

• Financial bills are bills addressing monetary issues, including income and expenditure.
• It can be divided into three distinct categories:
  • Money Bills under Article 110
  • Financial Bills (I) under Article 117(1)
  • Financial Bills (II) under Article 117(3)
• Whileevery money bill is a financial bill, not all financial bills are money bills.
  • Only those financial bills which exclusively include matters listed in Article 110 of the Constitution are deemed money bills.
• The Speaker of the Lok Sabha also formally certifies these as money bills.
• On the other hand, financial bills (I) and (II) are explained in Article 117 of the Constitution.

Financial Bills (I)

• A financial bill (I) includes any or all of the elements outlined in Article 110, as well as other topics related to general legislation.
  • For example, a bill might include a borrowing clause without focusing exclusively on borrowing.
• Two characteristics make a type I financial bill similar to a money bill. They can:
  • Only be initiated in the Lok Sabha and not the Rajya Sabha, and
  • Only be put forth with the President’s recommendation.
• In all other aspects, financial bill (I) follows the same legislative procedures as an ordinary bill.
• It can be rejected or amended by the Rajya Sabha (unless the amendment isn’t for a tax reduction or abolition).
• If the two Houses disagree on such a bill, the President can call a joint session to break the deadlock.
• When the bill reaches the President, he can either approve, reject, or return the bill for the Houses to reconsider.

Financial Bills (II)

• Financial bills (II) contain provisions that entail expenditure from the Consolidated Fund of India.
  • However, they don’t include any matters outlined in Article 110.
• These bills are treated similarly to ordinary bills and follow the same legislative procedures.
• The unique aspect of this bill is that neither House of Parliament can pass it unless the President has recommended it.
  • Hence, a type II financial bill can be introduced in either House of Parliament and doesn’t require the President’s recommendation for introduction.
• It is required at the consideration stage, though. Just like other bills, it can be rejected or amended by either House.
• If a disagreement arises over such a bill, the President can call a joint session to resolve the impasse.
• When the bill reaches the President, he can either approve, reject, or return the bill for the Houses to reconsider.

Conclusion

The legislative procedure in the Indian Parliament is a comprehensive process that involves several stages through which a bill becomes law. In conclusion, the legislative procedure in India is a complex yet well-structured system designed to ensure comprehensive scrutiny. Understanding the legislative procedures for passing bills in Parliament is crucial for those interested in the workings of India’s democracy. The legislative procedures, although intricate and often lengthy, allows for careful scrutiny and debate on every bill, ensuring that it serves the public interest. Whether it’s an ordinary bill, money bill, or financial bill, each type undergoes unique procedures, demonstrating the nuanced approach to legislation in India’s parliamentary democracy. The legislative procedure involves several key stages (Introduction of the Bill, First Reading, Second Reading, Third Reading, Bill Passes to Other House, Presidential Assent, Publication and Commencement, etc). This legislative procedure ensures that all proposed legislation undergoes thorough scrutiny and debate, reflecting the democratic ethos of India’s parliamentary system.

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