Budget 2021: What is the Finance Bill?
Budget 2021: What is the Finance Bill?

The Budget for FY22 will come against the backdrop of an economic contraction of 7.7 percent, the first time in the history of independent India. So, all stakeholders have great expectations from the upcoming Budget, which could provide a healing touch to the pandemic-battered economy and push growth.

While the Union Budget 2021-22 is ready to be presented on February 1, we decided to help you with the budget glossary.

From GDP, revenue deficit to various funds - there are several words which appear in the news articles during the budget session of the parliament. Finance bill is one of such words.

Legislation which is yet to be passed as a law by the Houses of Parliament is termed a Bill, while the bill which deals with the country's finances is passed as a Finance Bill.

The Finance Bill forms a part of the Union Budget, with details about all the legal amendments required for the changes in taxation proposed by the Finance Minister of the country.

As per Rule 219 of the Rules of Procedure of Lok Sabha, Finance Bill means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India for the next following financial year and includes a Bill to give effect to supplementary financial proposals for any period.

Finance Bill is different from a Financial Bill which is defined under Article 117(1) of the Constitution. Money bills including Finance Bills are a subset of Financial Bills.

Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur and senior officials of the finance ministry on Saturday participated in the symbolic 'Halwa Ceremony' that marks the beginning of compilation of budget documents.

Unlike the past, the voluminous budget documents will not be printed this year following the COVID-19 protocol and will instead be distributed electronically to the Members of Parliament (MPs). Previously, the ceremony marked the launch of printing exercise for the budget.

This will be the first time since the presentation of independent India's first budget on November 26, 1947, that the documents containing income and expenditure statement of the Union government along with the finance bill, detailing new taxes and other measures for the new financial year, will not be physically printed.

(With inputs from agencies)

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