Article 207

Special Provisions as to Financial Bills

Official heading: “Special provisions as to financial Bills.”

Check this article against the official editionAwaiting human legal review

Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part VI, Article 207, printed page 95
Last human source-link check: Not yet checked
Last human legal review: Not yet reviewed

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1. In One Sentence

Article 207 regulates Financial Bills in the State Legislature, requiring the Governor's recommendation for introduction and restricting their origination to the Legislative Assembly.

2. What It Means in Everyday Language

Article 207 provides the procedural safeguards for Financial Bills in the State Legislature, corresponding to Article 117 for Parliament.

Category I Financial Bills (Clause 1): A bill or amendment making provision for any of the matters specified in sub-clauses (a) to (f) of Article 199(1) (such as imposing taxes or modifying Consolidated Fund withdrawals) shall NOT be introduced or moved except on the recommendation of the Governor, and shall NOT be introduced in the Legislative Council.

Exemption for Tax Reductions: The proviso to Clause (1) clarifies that no gubernatorial recommendation is required for moving an amendment that reduces or abolishes any tax.

Category II Financial Bills (Clause 3): A bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of the State shall not be passed by either House unless the Governor has recommended its consideration.

3. Practical Illustrative Example

Everyday Scenario:

An MLA in the Legislative Council attempts to introduce a private member bill creating a new State sales tax.

Core takeaway: Under Article 207(1), the bill is constitutionally barred: tax-imposing financial bills can never originate in the Council and require prior gubernatorial recommendation.

Illustrative Notice: An amendment seeking to reduce or abolish an existing tax can be moved by any legislator without prior recommendation.

4. Important Limits, Qualifications & Exceptions

Article 207 maintains executive responsibility over revenue and expenditure legislation.

Governor's recommendation required prior to introduction of tax and spending bills.
Origination restricted to Legislative Assembly for Category I bills.
Tax reduction amendments exempt from recommendation.
Category II bills require recommendation prior to final passing.

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 199 shall not be introduced or moved except on the recommendation of the Governor, and a Bill making such provision shall not be introduced in a Legislative Council: 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 penalties, 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 a State shall not be passed by a House of the Legislature of the State unless the Governor h as recommended to that House the consideration of the Bill.

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 VI, Article 207, printed page 95 • 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