Article 117

Special Provisions as to Financial Bills

Official heading: “Special provisions as to financial Bills”

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Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part V, Article 117, printed pages 54–55
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Last human legal review: Not yet reviewed

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1. In One Sentence

Article 117 establishes special procedural rules for Financial Bills, distinguishing bills requiring prior presidential recommendation from ordinary legislation and restricting their introduction.

2. What It Means in Everyday Language

Article 117 governs 'Financial Bills', which are distinct from pure 'Money Bills' under Article 110. All Money Bills are Financial Bills, but not all Financial Bills are Money Bills.

Clause (1) covers Financial Bills of Category I: a bill that contains any of the matters specified in sub-clauses (a) to (f) of Article 110(1), but ALSO includes other general legislative provisions. Such a bill cannot be introduced in the Rajya Sabha and requires prior presidential recommendation for introduction.

However, once introduced in the Lok Sabha, a Category I Financial Bill is treated like an ordinary bill: the Rajya Sabha has full power to amend or reject it, and deadlocks can be resolved via an Article 108 joint sitting.

Clause (2) clarifies that bills merely imposing local taxes, license fees, or utility charges do not require presidential recommendation.

Clause (3) covers Financial Bills of Category II: an ordinary bill that does not involve Article 110 matters, but if enacted would involve expenditure from the Consolidated Fund of India. It can be introduced in either House without recommendation, but cannot be PASSED by either House unless the President has recommended its consideration.

3. Practical Illustrative Example

Everyday Scenario:

The government introduces a comprehensive national healthcare bill that sets medical safety standards and also creates a new statutory medical cess.

Core takeaway: Because it contains taxation alongside regulatory provisions, it is a Financial Bill under Article 117(1): it must originate in the Lok Sabha with presidential recommendation, but the Rajya Sabha can propose binding amendments.

Illustrative Notice: If the bill were certified as a pure Money Bill under Article 110, the Rajya Sabha would have had only 14 days to suggest non-binding recommendations.

4. Important Limits, Qualifications & Exceptions

Article 117 creates a nuanced spectrum of financial legislation between Money Bills and ordinary bills.

Category I Bills: Originate only in Lok Sabha with presidential recommendation, but subject to full Rajya Sabha powers.
Category II Bills: Originate in either House, but require presidential recommendation before final passing.
Protects Upper House: Prevents government from treating mixed legislative packages as pure Money Bills.
Enforces executive fiscal responsibility across both Houses of Parliament.

5. Operative Constitutional Text

(1) A Bill or amendment making provision for any of the matters specified in sub-clauses ( a) to ( f) of clause (1) of article 110 shall not be introduced or moved except on the recommendation of the President and a Bill making such provision shall not be introduced in the Council of States: Provided that no recommendation shall be required under this clause for the moving of an amendment making provision for the reduction or abolition of any tax. (2) A Bill or amendment shall not be deemed to make provision for any of the matters aforesaid by reason only that it provides for the imposition of fines or other pecuniary pen alties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes. (3) A Bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of India shall not be passed by either House of Parliament unless the President has recommended to that House the consideration of the Bill. Procedure Generally

Transcription for reference; compare with the linked official editionNot yet verified by a human legal reviewer

6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata

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Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part V, Article 117, printed pages 54–55 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource