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    Indian Polity
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    Money Bill

    Parliament & How a Bill Becomes Law

    Updated 1 July 20264 min read

    The composition of Parliament, the types of bills, the difference between ordinary and money bills, and a step-by-step flowchart of how a bill becomes law.

    Key Takeaways

    • Parliament consists of the President, the Lok Sabha and the Rajya Sabha (Article 79).
    • A Money Bill (Article 110) can be introduced only in the Lok Sabha, on the President's recommendation, and is certified by the Speaker.
    • A deadlock over an ordinary bill is resolved by a joint sitting (Article 108) — but never for a Money Bill or a Constitutional Amendment Bill.
    Art 79
    Parliament = President + 2 Houses
    Art 110
    Money Bill
    Art 108
    Joint sitting
    14 days
    Rajya Sabha limit on Money Bills

    Core concept

    Parliament is the supreme legislative organ of the Union. Under Article 79, it comprises the President, the Lok Sabha (House of the People) and the Rajya Sabha (Council of States). Law-making is its primary function, alongside control over the executive and the finances of the Union.

    Static foundation — types of bills

    TypeArticleKey feature
    Ordinary BillArt 107, 108Any matter other than financial; either House; joint sitting possible
    Money BillArt 110Only in Lok Sabha, on President's recommendation; Speaker certifies
    Financial BillArt 117Contains financial + other provisions; Lok Sabha only for some
    Constitutional Amendment BillArt 368Special majority; no joint sitting

    How an Ordinary Bill Becomes Law

    1

    First Reading (Introduction)

    The bill is introduced in either House; its title and objectives are read. No discussion at this stage.

    2

    Second Reading

    The heart of the process — general discussion, then the committee stage (clause-by-clause scrutiny), then consideration of amendments.

    3

    Third Reading

    The House debates and votes on the bill as a whole. If passed by a simple majority, it moves to the second House.

    4

    Bill in the Second House

    The second House repeats all three readings. It may pass, amend, reject, or sit on the bill.

    5

    Deadlock → Joint Sitting (Art 108)

    If the Houses disagree, the President may summon a joint sitting, presided over by the Speaker of the Lok Sabha; decided by a majority of members present and voting.

    6

    President's Assent

    The President may assent, withhold assent, or return the bill (suspensive veto). If repassed, assent is mandatory. The bill then becomes an Act.

    A joint sitting is NOT available for a Money Bill or a Constitutional Amendment Bill.

    Ordinary Bill vs Money Bill

    FeatureOrdinary BillMoney Bill
    Where introducedEither HouseOnly Lok Sabha
    President's recommendationNot needed to introduceRequired before introduction
    Rajya Sabha's powerEqual — can amend/rejectCan only recommend; must return in 14 days
    CertificationNoneSpeaker certifies it as a Money Bill
    Joint sittingPossible (Art 108)Not possible

    Value addition

    Only three joint sittings have been held so far — for the Dowry Prohibition Bill (1961), the Banking Service Commission (Repeal) Bill (1978), and the Prevention of Terrorism Act / POTA (2002). A strong data point for Rajya Sabha's role.

    Current affairs linkage

    The 'Money Bill' route has been controversial — used to pass laws that arguably exceed Article 110 (e.g., aspects of Aadhaar, the Finance Act amendments). The scope of the Speaker's certification is under judicial scrutiny. (Add the latest constitution-bench position on Money Bills here.)

    Mains answer skeleton

    Intro: Parliament as the deliberative heart of representative democracy.

    Body: (a) Robust process — multiple readings, committees; (b) declining scrutiny — fewer sitting days, ordinances, bypassing committees, Money Bill misuse; (c) Rajya Sabha as a federal, revising chamber.

    Way forward / Conclusion: Strengthen committees, fix minimum sitting days, respect bicameralism.

    Prelims trap zones

    1. Every Money Bill is a Financial Bill, but not every Financial Bill is a Money Bill.
    2. The Speaker (not the President) certifies a Money Bill.
    3. A joint sitting applies to ordinary bills only — never to Money Bills or Amendment Bills.

    Knowledge Check

    2 questions · check your understanding

    1. Who presides over a joint sitting of the two Houses of Parliament?

    2. A Money Bill can be introduced in which House?

    Prelims Pointers

    • Lok Sabha maximum strength is 550 (530 states + 20 UTs); Rajya Sabha maximum is 250 (238 elected + 12 nominated).
    • The Speaker of the Lok Sabha decides whether a bill is a Money Bill, and presides over a joint sitting.
    • The Rajya Sabha must return a Money Bill within 14 days with recommendations, which the Lok Sabha may accept or reject.
    • A joint sitting is provided under Article 108; the Anglo-Indian nomination to the Lok Sabha ended with the 104th Amendment (2020).

    Mains Angle

    • 'The Rajya Sabha is a revising chamber, not a rival chamber.' Discuss its role in law-making.
    • Examine the misuse of the 'Money Bill' route to bypass the Rajya Sabha.

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    On this page

    • Core concept
    • Static foundation — types of bills
    • How an Ordinary Bill Becomes Law
    • Ordinary Bill vs Money Bill
    • Knowledge Check

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