In a state legislature, the prior recommendation of the Governor is required to introduce:

Under Article 207 of the Constitution, a Money Bill (as defined in Article 199) can be introduced in a state legislature only on the recommendation of the Governor. Moreover, a Money Bill can be introduced only in the Legislative Assembly (the lower House), not in the Legislative Council. This is similar to the provisions for Parliament, where a Money Bill requires the recommendation of the President (Article 117) and can be introduced only in the Lok Sabha (Article 109).

A Money Bill deals only with matters such as:

• The imposition, abolition, remission, alteration or regulation of any tax.
• The borrowing of money by the state government.
• The custody of the Consolidated Fund or the Contingency Fund of the state, and payments into or withdrawals from them.
• The appropriation of money out of the Consolidated Fund of the state.
• The question whether a bill is a Money Bill is decided by the Speaker of the Legislative Assembly, and the Speaker's decision is final.

Procedure for Money Bills in a state with a Legislative Council:

After the Assembly passes a Money Bill, it is sent to the Legislative Council.

The Council cannot reject or amend a Money Bill. It can only make recommendations and must return the bill within 14 days.

The Assembly may accept or reject the Council's recommendations. If the Council does not return the bill within 14 days, it is deemed to have been passed by both Houses.

Governor's options on a Money Bill: Since it is introduced with the Governor's prior recommendation, the Governor normally gives assent. He or she may also reserve it for the consideration of the President, but cannot return it for reconsideration.

The annual budget of the state, called the Annual Financial Statement, is laid before the legislature under Article 202 on behalf of the Governor.

Only six states currently have a bicameral legislature (with a Legislative Council): Andhra Pradesh, Bihar, Karnataka, Maharashtra, Telangana and Uttar Pradesh. Under Article 169, Parliament can create or abolish a Council if the state Assembly passes a resolution by a special majority.

Why not the other options?

• ✗Ordinary Bills can be introduced without the Governor's recommendation, in either House.
• ✗Private Members' Bills are introduced by non-ministers and do not need the Governor's recommendation, unless they are Money Bills.
• ✗Constitution Amendment Bills can be introduced only in Parliament, not in state legislatures.