Bill, Act and Ordinance- differentiation

  Bill is a rough draught which introduces a set of rules and regulations proposed to be implemented for a specific area of law. A bill needs to be debated and passed in parliament. Some sections of the bill may be amended, removed or added.

For example :- bill for protection of women from domestic violence.

■ Act- Once a bill has been passed by the parliament and receives the assent of the president then the bill comes into effect and becomes an act.

Ordinance - it is a temporary law that put into effect for a particular area of law ,till the time a more comprehensive set of rules and regulations is not setup. This generally happens when parliament is not in session.



What are the different types of bill?

Bill may be broadly classified into government bills and private member bill depending upon their initiation in the house by a minister or a private member.

But depending on the content wise bills are further classified into-

1. Ordinary bill -

As per article 107 and 108 of the Indian constitution, an ordinary  bill is conserved with any matter other than financial subjects. An ordinary bill is Introduced in either house of the parliament. It is introduced by minister or a private member. There is no recommendation of president in case of a ordinary bill.

Ordinary bill can be amended or Rejected by rajyasabha and it can be detained by rajya sabha for a period of six months. After being passed by both the houses of parliament, it is presented to the president for his approval for assent under article 111 of the Indian constitution.

There is a provision of joint sitting in case of ordinary bill.

2. Money bill-

Money bills are those bills which are concerned with financial matters like taxation, public expenditure etc. These are those bills that contain provisions that deal with all or any of the matters specified in article 110 of the Indian constitution.

This bill is presented only in lok sabha. It is introduced only by the minister. Money bill is introduced only after presidents recommendation. 

This bill cannot be amended or rejected by rajya sabha. It can be detained by Rajeshwar for maximum period of 14 days. Only after being passed by lok sabha. 

There is no provision of join sitting in case of money bill.

3. Financial bill-

As per article 117 of the Indian constitution, financial bill are those bills which are concerned with financial matters but are different from money bills. Financial bills are further classified as financial bills category A and category B.

Article 117 (1) says that bill which contains matters given in article 110 and also matters related with general legislation is called financial bill.

Category A contain provisions dealing with any of the matters specified in sub clause A to F of clause 1 of article 110 Indian constitution and category B, bills involve expenditure from the consolidated fund of India.

4.Constitutional amendment Bill-

Article 368 of the Indian constitution is concerned with the provisions of amendment of the constitution.

Which means to seek to modify amend or revise existing acts.


Except money bill and financial bill-1, which can be introduced only in the lok sabha, a bill may originate in either House of the parliament. As per the provisions of article 109 of the constitution the rajya sabha has limited powers with respect to money bills.

Discussion on Money bill (Article 110)

Any bill which contains one or more matters given in article 110 only is called money bill.

A money bill can only be presented first in lok sabha.

Before presenting a money bill requires prior recommendation of the president.

It is passed by simple majority and then sent to rajya sabha.

In case of a money bill the rajya sabha has very minimum power. It can only give recommendations but can't change the bill.

Rajya sabha cannot hold the bill more than 14 days. After 14 days it passes automatically and sent to the president for his final assent.

The president cannot send the bill back to the house to make any changes because the bill is initially sent to the president for his prior recommendation so this time he has to give his assent to it. 

Article 111(the end used with the certificate of the speaker of the house of the people signed by him that it is a money bill)

Money bill is always introduced by the government members only or we can say that it it is a government bill.

As in this Bill rajya sabha has very minimal power so it does not have any provision of joint sitting.

The speaker  of lok sabha decides whether a bill is money bill or not.


What Money bill contains???

Contains only provisions dealing with all or any of the following matters namely- 

 imposition abolition remission alteration or regulation of any taxes,

Regulations regarding borrowing of money aur giving any money guarantee by the government of India

The custody of consolidated fund of India the payment of money into on the withdrawal of money from any such funds.

The appropriation of monies out of the consolidated fund of India

The declaring of any expenditure to be expenditure charged on the consolidated fund of India on the increasing of the amount of any such expenditure.

The receipt of money on account of consolidated fund of India are the public accounts of India are the custody or issues of such money or the audit of the account of the union or of a state.

Any matter accidental to any of the matters specified above.

Please note if you collect any penalty of fine or fees that does not comes under our money bill. If the local government collects taxes or changes any taxes then it does not comes under your money bill.


Three types of fund of government according to the constitution-

A) Consolidated fund 266

B) Contingency fund 267

C) Public account 266(2)


Consolidated Fund of India article (266 )

This term derives its origin from the constitution of India itself.

Under article 266 (1) of the constitution of India all revenues for example tax revenue from personal income tax corporate income tax customs and excise duties as well as non tax revenues such as licence fees dividend and profits from public sector undertakings expectra

Species by the union government as well as all loans raised by the issues of treasury bills internal and external loans and all money received by the union government in repayment of loans shall form a consolidated fund and titled the consolidated fund of India for the union government

This fund is filled by-

1. Direct and indirect taxes loans taken by the Indian government.

2. Returning of loans interest of loans to the government by anyone agency that has taken it

3. The comptroller and auditor general of India audits these funds and reports to the relevant legislature on their management.

Government minutes all its expenditure from this find the government needs parliamentary approval to withdraw money from this fund.

Contingency fund of India article 267 

this fund is raised for emergency purpose for example for disasters and related and forcing expenditure it have at least rupees 500 crores.




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