Significance:

·       The Finance Bill is a crucial piece of legislation introduced annually in the Lok Sabha after the presentation of the Union Budget.

·       It embodies the government’s proposals regarding taxation, spending, and other financial matters for the upcoming fiscal year.

·       The Bill is categorized as a Money Bill under Article 110 of the Constitution, specifically dealing with taxation proposals.

·       It plays a vital role in shaping the fiscal policy of the government and has far-reaching implications for the economy and taxpayers.

Process and Legislative Requirements:

·       The Finance Bill can only be introduced in the Lok Sabha, but the Rajya Sabha can recommend amendments.

·       It requires approval from both houses of Parliament before becoming law.

·       The Bill must be passed within 75 days of its introduction.

·       The Lok Sabha recently passed the Finance Bill, 2024, by a voice vote, marking a significant step in the budgetary process.

·       Further, parliamentary approval for spending, as mandated by the Appropriation Bill, prevents unauthorized withdrawals from the Consolidated Fund of India.

·       These legislative mechanisms help uphold democratic principles and ensure responsible governance.