The Constitution makes a distinction between money bills and non-money bills (ordinary bills) and gives special status to money bills.
→A money bill is one that has provisions of financial nature such as taxes, expenditure, public borrowing, lending of money, salary and allowances of the government employees. provisions for welfare scheme and defence.
→A money bill is sent to the President for the prior sanction.
→On the recommendation of the President, a money bill is first introduced in the Lok Sabha.
→ The Speaker of the Lok Sabha decides whether a bill is money bill or an ordinary bill. This power maintains superiority of the Lok Sabha over the Rajya Sabha.
→The most important among the money bills is the annual budget which is presented by the Union Finance Minister before the Lok Sabha. It contains estimates of income and expenditure, taxation measures and provisions for the different activities in the form of 'Demand for Grants' by different departments.
→ After a money bill is passed by the Lok Sabha, it is sent to the Rajya Sabha for a period of fourteen days for its consideration.
→ The Rajya Sabha is expected to return a money bill, with or without suggestions, to the Lok Sabha within 14 days.
→ Since the powers of the Rajya Sabha are merely recommendatory, it is within the powers of the Lok Sabha to accept or reject these suggestions.
→ Thereafter money bill is sent to the President for formal assent.