Article 117 of the Constitution deals with:

Article 117 lays down special provisions for financial bills, which deal with financial matters but are not purely Money Bills.

Kinds of financial bills under Article 117:

• Financial bills of the first kind, under Article 117(1), contain any of the matters listed in Article 110 along with other matters.
• Financial bills of the second kind, under Article 117(3), involve expenditure from the Consolidated Fund of India but do not include any of the Money Bill matters.

Financial bills of the first kind:

• They can be introduced only in the Lok Sabha.
• They can be introduced only on the recommendation of the President.
• In all other respects, they are treated like ordinary bills.
• The Rajya Sabha can reject or amend them.
• If there is a deadlock, the President can summon a joint sitting.

Financial bills of the second kind:

• They are treated like ordinary bills and can be introduced in either House.
• The President's recommendation is not needed for introduction.
• However, neither House can pass the bill unless the President has recommended its consideration.

How they differ from Money Bills:

• A Money Bill contains only the matters listed in Article 110, while a financial bill contains other matters as well.
• The Speaker certifies a Money Bill, but there is no such certificate for a financial bill.
• The Rajya Sabha has full powers over financial bills but only limited powers over Money Bills.

Example:

A bill that imposes a new tax and also lays down a new administrative structure would be a financial bill of the first kind, not a Money Bill.

Why the distinction matters:

• It protects the role of the Rajya Sabha in matters that are not purely financial.
• Disputes over whether certain laws should have been treated as Money Bills have reached the Supreme Court.

Why not the other options?

• ✗Appropriation bills are dealt with in Article 114.
• ✗The annual financial statement is in Article 112.
• ✗Supplementary and excess grants are in Article 115.