Procedure For Passing Of The Money Bills

Procedure for Passing Money Bills in Parliamentary Systems

1. Introduction and First Reading:

A money bill is introduced in the lower house of parliament (e.g., Lok Sabha in India, House of Commons in the UK) by a minister on behalf of the government.

The bill is listed on the legislative agenda, and its title and main provisions are read out for the first time.

There is usually no debate at this stage.

2. Consideration and Second Reading:

The bill is scheduled for debate and consideration by members of the lower house during a designated sitting.

Members discuss the general principles and objectives of the bill, including its financial implications and policy objectives.

Following the debate, a vote is held on whether to proceed with the bill to the next stage. 

If approved, the bill moves to the next phase.

3. Committee Stage:

The bill is referred to a parliamentary committee for detailed examination and scrutiny. 

In some cases, a specialized finance or budget committee may be tasked with reviewing money bills.

The committee studies the provisions of the bill, holds hearings, receives input from stakeholders, and may propose amendments.

After completing its review, the committee submits a report with recommendations to the lower house.

4. Report Stage:

The bill returns to the lower house for consideration of the committee's report and any proposed amendments.

Members debate the committee's recommendations and may propose further amendments to the bill.

A vote is taken on each amendment, and the bill is revised accordingly.

5. Third Reading:

The final version of the bill, as amended, is presented for a third reading and debate in the lower house.

Members have an opportunity to discuss the bill's content and any remaining issues.

A vote is held on whether to pass the bill in its final form.

6. Transmission to Upper House:

If the bill is approved by the lower house, it is transmitted to the upper house (e.g., Rajya Sabha in India, House of Lords in the UK) for consideration.

The upper house may conduct its own review and may propose amendments, but it cannot initiate or significantly amend money bills.

7. Royal Assent/Presidential Assent:

Once both houses of parliament have approved the bill, it is sent to the head of state (e.g., President in India, Monarch in the UK) for formal assent.

Upon receiving assent, the bill becomes law and is enacted as part of the country's financial legislation.