How a Bill becomes law: ordinary, money and constitutional amendment Bills

Prelims questions on legislative procedure look simple and catch many aspirants out: "Which of the following Bills can be introduced only in the Lok Sabha?", "In which case can a joint sitting not be called?", "Can the President return a Money Bill?" The answers depend on knowing which kind of Bill you are dealing with.

This guide maps the three main paths — ordinary Bills, Money Bills and constitutional amendment Bills — and the points where they differ.

Ordinary Bills

An ordinary Bill deals with any matter other than money matters or constitutional amendments.

Where it starts: in either House. It can be introduced by a minister (a government Bill) or by any other member (a private member's Bill).

The stages in each House:

1. First reading — the Bill is introduced; there is no discussion on its details.
2. Second reading — the most important stage. The House may discuss it generally, refer it to a select committee, a joint committee of both Houses or a departmental standing committee, or circulate it for public opinion. Then comes clause-by-clause consideration and amendments.
3. Third reading — the House debates the Bill as a whole and votes on it. Amendments at this stage are limited.

The Bill then goes to the other House, which can pass it, amend it, reject it, or not act on it.

If the Houses disagree: Under Article 108, the President can summon a joint sitting of both Houses when:

• the other House rejects the Bill,
• the Houses disagree on amendments, or
• more than six months pass without the other House passing it.

The joint sitting is presided over by the Speaker of the Lok Sabha, and the Bill needs a simple majority of members present and voting. Because the Lok Sabha has many more members, its view usually prevails.

Money Bills

A Money Bill is defined in Article 110: a Bill containing only provisions dealing with matters such as imposing, abolishing or altering a tax, government borrowing, the custody of or withdrawal from the Consolidated Fund of India, appropriation of money from it, and matters incidental to these.

The procedure is designed to give the Lok Sabha — the directly elected House — control over money:

• It can be introduced only in the Lok Sabha, and only with the President's recommendation.
• After the Lok Sabha passes it, the Rajya Sabha has 14 days to return it with recommendations. It cannot reject or amend it.
• The Lok Sabha may accept or reject those recommendations. Either way, the Bill is deemed passed by both Houses. If the Rajya Sabha does not return it within 14 days, it is deemed passed anyway.
• There is no joint sitting for a Money Bill — it is never needed.
• The Speaker's certificate decides whether a Bill is a Money Bill, and Article 110(3) says that decision is final.

The President and Money Bills: since the Bill is introduced with the President's prior recommendation, the President normally assents. The President may withhold assent but cannot return a Money Bill for reconsideration.

Financial Bills

Not every Bill about money is a Money Bill. Financial Bills under Article 117 are Bills that contain money matters but also other provisions.

• Financial Bills under Article 117(1) — contain some Article 110 matters plus other matters. Like Money Bills, they can be introduced only in the Lok Sabha on the President's recommendation, but after that they follow the ordinary procedure. The Rajya Sabha can amend or reject them, and a joint sitting is possible.
• Financial Bills under Article 117(3) — involve expenditure from the Consolidated Fund but contain no Article 110 matters. They follow the ordinary procedure entirely, except that they cannot be passed by either House without the President's recommendation for consideration.

Constitutional amendment Bills

Amendments under Article 368 follow a separate path.

• They can be introduced in either House, by a minister or a private member, and without the President's prior recommendation.
• Each House must pass the Bill separately by a special majority: a majority of the total membership of the House and two-thirds of the members present and voting.
• There is no joint sitting if the Houses disagree — the Bill simply fails.
• Amendments that affect the federal structure — such as the election of the President, the distribution of legislative powers, representation of states in Parliament, the Supreme Court and High Courts, or Article 368 itself — must also be ratified by the legislatures of at least half the states by a simple majority.
• After the 24th Amendment (1971), the President must give assent; there is no veto.

Some provisions of the Constitution can be changed by a simple majority of Parliament outside Article 368 — for example, forming new states under Article 3 — and these are not considered amendments for the purposes of Article 368.

The three paths compared

The President's choices on a Bill

Under Article 111, when a Bill (other than a Money Bill or amendment) is presented, the President can:

1. give assent — it becomes law;
2. withhold assent — an absolute veto; the Bill fails; or
3. return it for reconsideration. If both Houses pass it again, with or without changes, the President must give assent. This is a suspensive veto.

Because Article 111 sets no time limit, the President can in effect sit on a Bill — sometimes called a pocket veto. The best-known example is the Indian Post Office (Amendment) Bill, 1986, on which President Zail Singh took no decision.

Practice questions

1. Prelims-type: Can a joint sitting be called to resolve a deadlock on (a) a Money Bill, (b) a constitutional amendment Bill, (c) a Financial Bill under Article 117(1)?
2. Prelims-type: Within how many days must the Rajya Sabha return a Money Bill?
3. Mains-type (150 words): Distinguish between a Money Bill and a Financial Bill. Why does the distinction matter for federal and bicameral balance?