What is Article 117 of Indian Constitution – Defination & Meaning

Article 117: Special provisions as to financial Bills (1) A Bill or amendment making provision for any of the matters specified in sub-clauses (a) to (f) of
📅 Part V – The Union
🏷️Active

📚 UPSC Relevant

Article Number

117

part

Part V – The Union

Status

Active

Bare Acts Text

Article 117: Special provisions as to financial Bills

  • (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.
READ ALSO  What is Article 243ZS of Indian Constitution - Defination & Meaning

Full Definition & Explanation

Article 117 of the Indian Constitution outlines how financial bills must be handled in Parliament. This article primarily affects the legislative process regarding money matters in India. Specifically, it requires that any bill or amendment dealing with certain financial aspects can only be introduced with the President’s recommendation. This ensures that the government has a clear mandate and accountability when making financial decisions that impact the country’s economy and public finances. The article also includes an exception. If a bill suggests reducing or abolishing a tax, it does not need the President’s recommendation. This allows for more flexibility in tax legislation, as the government can respond quickly to economic needs. Additionally, Article 117 clarifies that certain provisions, such as imposing fines or fees, do not require the same level of scrutiny that financial bills do. This helps streamline processes for local authorities to manage their finances without excessive bureaucratic hurdles. Also, any bill that would lead to spending from the Consolidated Fund of India cannot proceed without the President’s approval. The Consolidated Fund is the main account for the government, and managing it requires careful oversight. This provision helps prevent unauthorized spending and ensures that Parliament has a say in financial matters, maintaining a check on government power. Overall, Article 117 plays a key role in maintaining financial discipline and accountability within the legislative framework of India.

Historical Context

This article primarily affects the legislative process regarding money matters in India. Specifically, it requires that any bill or amendment dealing with certain financial aspects can only be introduced with the President’s recommendation. This ensures that the government has a clear mandate and accountability when making financial decisions that impact the country’s economy and public finances. If a bill suggests reducing or abolishing a tax, it does not need the President’s recommendation. Article 117 of the Indian Constitution outlines how financial bills must be handled in Parliament. This allows for more flexibility in tax legislation, as the government can respond quickly to economic needs.

Key Features

– Article 117 requires the President’s recommendation for financial bills.
– It allows exceptions for bills reducing or abolishing taxes.
– Local authorities can impose fees without needing presidential approval.
– Bills involving Consolidated Fund spending need presidential recommendation.
– This article ensures accountability in financial legislative processes.

Importance & Impact

– Article 117 helps control financial legislation in Parliament
– It prevents unauthorized spending from the Consolidated Fund
– The article allows swift tax adjustments without bureaucratic delays
– It ensures financial discipline within the legislative framework
– Presidential recommendations enhance accountability in financial matters

Sample UPSC Question

Consider the following statements about Article 117: 1. A Financial Bill (Category I) can originate in either House of Parliament. 2. Rajya Sabha can amend a Financial Bill (Category I) unlike a Money Bill. 3. The President’s recommendation is required to introduce a Financial Bill. 4. A Financial Bill (Category II) must originate in Lok Sabha. Which statements are correct? a) 2 and 3 only b) 1 and 4 only c) 2, 3 and 4 only d) 1, 2 and 3 only

Answer

Answer: a) 2 and 3 only Statement 1 is wrong — Financial Bill Category I must originate in Lok Sabha per Article 117(1). Statement 2 is correct — Rajya Sabha can amend Category I Financial Bills, unlike Money Bills. Statement 3 is correct — the President’s recommendation is mandatory for both categories. Statement 4 is wrong — Financial Bill Category II can originate in either House, unlike Category I.

Key Takeaways

✓ Article 117 mandates presidential recommendation for financial bills.
✓ It ensures accountability in government spending
✓ Certain tax-related bills have exceptions from this requirement.
✓ Local authorities can impose fees without presidential approval.
✓ The article strengthens financial discipline in legislative processes.

FAQs

Article 117 of the Indian Constitution outlines how financial bills must be handled in Parliament. This article primarily affects the legislative process regarding money matters in India. Specifically, it requires that any bill or amendment dealing with certain financial aspects can only be introduced with the President’s recommendation. This ensures that the government has a clear mandate and accountability when making financial decisions that impact the country’s economy and public finances.

Additionally, Article 117 clarifies that certain provisions, such as imposing fines or fees, do not require the same level of scrutiny that financial bills do. This helps streamline processes for local authorities to manage their finances without excessive bureaucratic hurdles. Also, any bill that would lead to spending from the Consolidated Fund of India cannot proceed without the President’s approval.

The Consolidated Fund is the main account for the government, and managing it requires careful oversight. This provision helps prevent unauthorized spending and ensures that Parliament has a say in financial matters, maintaining a check on government power. Overall, Article 117 plays a key role in maintaining financial discipline and accountability within the legislative framework of India.

Related Articles

Picture of Pramod Pal Founder and Editor-in-Chief

Pramod Pal Founder and Editor-in-Chief

Pramod is the Founder and Editor-in-Chief of StudyHub. He holds a Master's degree and is currently pursuing a Ph.D. in Geology, alongside more than 7+ years spent building and verifying competitive exam content for Indian aspirants. He leads StudyHub's editorial process across Indian Polity, the Constitution, Indian Economy, History, Geography, Science, and the platform's other subject areas — checking every article against primary sources (bare act text and Gazette notifications for constitutional topics, government and Economic Survey data for economy content, standard reference material elsewhere) and flagging it for re-verification whenever a relevant amendment, policy, or data update makes an earlier version outdated.
Scroll to Top