The Finance Bill forms a part of the Union Budget, with details about all the legal amendments required for the changes in taxation proposed by the Finance Minister of the country.
This topic is relevant for all IAS exam aspirants.
What is the difference between a money bill and Finance bill?
The major difference between the money bill and finance bill is mentioned below:
- Finance Bill has the provision of including recommendations from Rajya Sabha, however, in case of a Money Bill, it is not mandatory. In case of a Money Bill, Lok Sabha has the right to reject the recommendations of the Upper house or Rajya Sabha.
How is the Finance Bill passed?
The Finance Bill is introduced in Lok Sabha. Rajay Sabha can recommend amendments in the bill. However, the bill has to be passed by the Parliament within 75 days of introduction.
To know complete details on the passing of bills, check the linked article.
What is the Finance Act?
The Finance Act is an act of Parliament by which the Union Government of India gives effects to the financial proposals given by the government for the following financial year.
The finance bill is introduced to the Lower House after the Union Budget is presented by the Finance Minister. Once the proposals are passed by the parliament and assented to by the President, it becomes the Finance Act of that year.
There is a new Finance Act every financial year which makes this act an act that renews itself every year. This act basically is an umbrella act that includes all the government’s financial policies.