Finance Bill 2023-24 passed in the Parliament

The Lok Sabha has approved amendments to the Finance Bill 2023 as recommended by the Rajya Sabha amid difference in view with the Opposition members.

• The Lok Sabha on passed demands for grants authorising expenditure of about 45 lakh crore for 2023-24.
• The proposal was passed by voice vote amid protests by opposition members over their demand for a JPC probe into the Adani issue.

What is Finance Bill?

• As per Article 110 of the Constitution of India, the Finance Bill is a Money Bill.
• The Finance Bill is a part of the Union Budget, stipulating all the legal amendments required for the changes in taxation proposed by the Finance Minister.
• This Bill encompasses all amendments required in various laws pertaining to tax, in accordance with the tax proposals made in the Union Budget.
• The Finance Bill, as a Money Bill, needs to be passed by the Lok Sabha — the lower house of the Parliament.
• Rule 219: The Finance Bill finds its mention in Rule 219 of the Rules of Procedure of Lok Sabha.
• The Speaker of the Lok Sabha is authorised to decide whether the Bill is a Money Bill or not. Also, the Speaker’s decision shall be deemed to be final.
• Post the Lok Sabha’s approval, the Finance Bill becomes Finance Act.

Why it is important?

• The Union Budget proposes many tax changes for the upcoming financial year, even if not all of those proposed changes find a mention in the Finance Minister’s Budget speech.
• These proposed changes pertain to several existing laws dealing with various taxes in the country.
• The Finance Bill seeks to insert amendments into all those laws concerned, without having to bring out a separate amendment law for each of those Acts.
• For instance, a Union Budget’s proposed tax changes may require amending the various sections of the Income Tax law, Stamp Act, Money Laundering law, etc.
• The Finance Bill overrides and makes changes in the existing laws wherever required.

• Financial bill (I) is treated as an ordinary bill. i.e.
  • It can be either rejected or amended by the Rajya Sabha.
• In case of a disagreement between the two Houses over such a bill, the President can summon a joint sitting of the two Houses to resolve the deadlock.
• When the bill is presented to the President, he can either give his assent to the bill or withhold his assent to the bill or return the bill for reconsideration of the Houses.

Financial Bills (II):

• A financial bill (II) contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110. It is dealt under Article 117 (3) of the Constitution.
• It is governed by the same legislative procedure which is applicable to an ordinary bill.