Special provisions as to financial Bills

Article 97, Draft Constitution 1948

(1) A Bill or amendment making provision for any of the matters specified in items (a) to (f) of clause (1) of article 90 of this Constitution 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 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 revenues of India shall not be passed by either House of Parliament unless the President has recommended to that House the consideration of the Bill.

Article 117, Constitution of India 1950

(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 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 India shall not be passed by either House of Parliament unless the President has recommended to that House the consideration of the Bill.

Draft Article 97 (Article 117) was debated on 10 June 1949. It laid out special procedural provisions relating to the passage of financial bills.

A member proposed that clause 3 of the Draft Article should be amended to prevent the government from spending any money in war-like operations outside the territory of India. This could be allowed only when the President sought authorization from the Parliament after providing his reasons in writing. He contended that this would not hinder the ability of the state to defend itself, instead would act as a check on the government’s unfettered spending on wars. In response, it was argued this amendment would limit the executive’s power in defending the nation’s frontiers and integrity.

Another member proposed the deletion of clause 3 of the Draft Article. He argued that this clause could be strictly interpreted to mean that no Bill could be moved in either house of the Parliament unless on the recommendation of the President, as every Bill would require some government expenditure. In response, a member proposed the amendment of clause 3 to clarify that it would only apply where funds were sought from the Consolidated Fund of India.

The aforementioned proposals were voted in negative. The Assembly accepted minor changes proposed by the Drafting Committee and adopted the Draft Article on 10 June 1949.