The primary function of the Parliament is to make laws. It makes laws through proposing bills. These bills when given assent by the president becomes acts. Act is a legally binding law on the State and the citizens. The bills are for various purpose and of various types. These are bills to amend any law, or to amend any provision of the constitution, money bills, financial bills etc.

The bill goes through readings, discussions and debates clause by clause of the provision to pass it from both the houses of the parliament. After the bill has been passed by both the houses of the Parliament, it is sent to the President for his assent. Bills are effective measures to make laws.

Financial Bills

Financial Bills are also called as, "Act for Appropriation of Funds for Appropriations". It is different than money bills which has been mentioned under article 110 of the constitution of India. Financial bills are responsible for the fiscal matters such as government spending or revenue. It specifies the amount of money to be spent by the government and the way it is to be spent.

Financial bills are a component of the constitution and the union budget. It proposes all the necessary legal changes required for the proposed tax adjustments. When a question arises that a bill is a money bill or not, the speaker of the house decides on the matter and his decision shall be final in the regard.

According to Rule 219 of the Lok Sabha's Rules of Procedure, a "Finance Bill" is defined as the Bill that is typically introduced each year to give effect to the Government of India's financial proposals for the upcoming fiscal year, as well as a Bill to give effect to supplementary financial proposals for any period.

A Finance Measure is a financial bill that represents matters like inflation, tax relief, interest rates etc. It can be represented by any member of the either house of the Parliament.

Types Of Financial Bills

Financial bills (i): Article 117 (1)

• It includes not only the subjects stated in Article 110 of the Constitution but also other legislative provisions.
• Financial bill (i) is comparable to the money bill in two ways. Firstly, both of these bills can only originate in the Lok Sabha and not Rajya Sabha. Secondly, both the bills can be introduced only on the President's advice.
• A financial bill (i) follows the same parliamentary procedures as any ordinary bill.
• A finance bill (I) follows the same parliamentary process as an ordinary bill in all other respects.
• It can therefore be rejected or changed by the Rajya Sabha, with the exception that no amendment—other than one that lowers or abolishes taxes—can be introduced in either House without the president's approval.
• The president may call a joint session of the two Houses if they cannot agree on such a measure. This will end the impasse.
• When the measure is presented to the President, he has three options: to approve it, decline to do so, or send it back to the Houses for further consideration.
   

Financial bills (ii): Article 117 (3)

• A financial bill (II) does not contain any of the items listed in Article 110, but it does contain measures impacting Consolidated Fund of India spending.
• It is regarded as an ordinary bill and is handled in every way by the same parliamentary process as an ordinary bill.
• This bill's sole unique feature is that neither House of Parliament may pass it without the President first requesting that it be brought up for consideration.
• Financial bill (ii) can be filed in either house of the Parliament and the President's approval is not required.
• However, the President's suggestion can be taken during the consideration stage of the bill.
• It can be rejected or amended by either House of Parliament. The President may call a joint session of the two Houses if they cannot agree on such a measure. This will end the impasse.
• When the measure is presented to the President, he has three options: to approve it, decline to do so, or send it back to the Houses for further consideration.

Need Of A Financial Bill

• The Union Budget suggests a number of tax changes for the upcoming fiscal year, even if the Finance Minister's Budget address does not mention all of the suggested changes.
• These suggested changes will have an impact on a variety of current tax-related laws in the nation.
• The Finance Bill intends to alter all pertinent laws without necessitating the passage of individual amendment bills for each one.
• Since it addresses all of the major issues that the nation must resolve, particularly those pertaining to expenditure, the Finance Bill is essential for Indian politics and government.
• This law addresses a number of concerns, including tax relief, inflation, and interest rates.
• Election support for political parties founded on such themes is also covered.
• The Right of Citizens Act (RC), the Company Law Amendment Act (CLAA), the First Information Report Act (FIRAA), and many other important Acts have already been put into effect by the government as a result of this law.
• For instance, a Union Budget's anticipated tax modifications may require amending various sections of the Income Tax Act, Stamp Act, Money Laundering Act, and other legislation.
• The Finance Bill amends and repeals existing legislation as appropriate.

Difference Between Financial Bill And Money Bill

• Money bills have been covered under article 110 of the constitution whereas Finance bill is covered under article 117 (1) and (3) of the constitution of India.
• The Rajya Sabha cannot amend or reject the money bill but it has the power to amend or reject the finance bill.
• Whether a bill is money bill has to be decided by the speaker whereas no such prior approval is required to classify a finance bill.
• Money bill and finance bill (1) can be introduced only in the Lok Sabha whereas a Finance Bill (2) can be introduced both in Rajya Sabha and the Lok Sabha.
• To resolve a deadlock, the President can summon a joint sitting of Lok Sabha and the Rajya Sabha in case if it is finance bill, however no such provision is made in case of a money bill.

Conclusion
Finance bills are an effective measure of the government to regulate and manage the economy of a country. Unlike money bills, finance bills are the Annual Financial Statement, sometimes referred to as the Union Budget of India, is a financial statement released by the Indian government that details the anticipated costs and income for a given fiscal year. The Indian Constitution's Article 110(a) requires that a finance bill be presented together with the budget.