Legislative procedure is initiated in the form of a bill, when the Bill is passed by both Houses of Parliament and assented by the President, it becomes a law.
Bills introduced in the Indian Parliament can be classified into 4 types of bills. They are as follows:
1. Money Bills
- These are defined in Article 110. These Bills deal with the taxes, borrowings, consolidated and contingency funds, audit and accounting, etc.
- Article 109 of Indian Constitution gives special procedure regarding Money Bills.
- A money Bill can originate only in Lok Sabha after the recommendations of the President. Through the Bill is sent to Rajya Sabha also but even Rajya Sabha rejects/returns the Bill (within days necessarily), the Bill is deemed to be passed.
- The Appropriation Bill and Annual Financial Bill (Budget) are Money Bills.
2. Financial Bills
- Any Bill dealing with revenues or expenditure but not certified as Money Bill by the Speaker is a Financial Bill.
- Financial Bill can only be introduced in Lok Sabha on the recommendations of the President & should be passed by both Houses of Indian Parliament (Lok Sabha or Rajya Sabha) by Simple majority.
3. Constitutional Amendment Bills
- Under Article 368 of Indian Constitution with the powers of parliament to amend the constitution, this bill can be introduced in any of the two Houses without recommendations of the President.
- Such Bills must be passed by each house (Lok Sabha and Rajya Sabha) separately with a special majority (two third of the members present and voting which must be more than absolute majority).
- By 24th Constitution amendment Act, 1971 it is obligatory for the president to give his assent to the Constitutional Amendment Bills.
4. Ordinary Bills
- Ordinary bills are concerned with any matter other than Financial Bills, money Bills and Constitutional Amendment Bills.
- Such Bills can be introduced in either House of Indian Parliament (Lok Sabha or Rajya Sabha) without the recommendations of President of India. These bills are passed by Simple Majority in both Houses.