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Financial Powers
Money Bills & The Contingency Fund
PART I — REVENUE & EXPENDITURE
ARTICLE 110 & 117
Money Bills
- Money Bills can be introduced in the Parliament **only with the prior recommendation** of the President.
- Because they are introduced with prior consent, the President rarely withholds assent and *cannot* return a Money Bill for reconsideration.
- Demand for a grant can also only be made on his recommendation.
ARTICLE 112
Annual Financial Statement
- The Constitution refers to the Budget as the "Annual Financial Statement."
- The President **"causes to be laid"** before Parliament the estimated receipts and expenditure of the Government of India for that year.
- The Executive cannot spend any money from the Consolidated Fund without parliamentary approval.
PART II — EMERGENCIES & DISTRIBUTION
ARTICLE 267
Contingency Fund of India
- This fund is placed entirely at the **disposal of the President**.
- Can make advances out of it to meet unforeseen, emergency expenditure.
- This expenditure is made *pending* its subsequent authorization by Parliament.
ARTICLE 280
Finance Commission
- The President constitutes a Finance Commission every **five years** (or earlier if necessary).
- The Commission recommends the distribution of revenues (taxes) between the Centre and the States.
- It ensures an equitable balance of resources in the federal structure.
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