Why in News? 

• The Lok Sabha has recently passed the Finance Bill 2025, which outlines the government’s proposed financial policies for the upcoming fiscal year. 

 About Finance Bill 

• Finance Bill is a type of financial legislation presented annually to give effect to the financial proposals of the government. 

Constitutional Provisions

• The Constitution divides financial legislation into two categories: 
  • Money Bills – governed by Article 110 
  • Financial Bills – governed by Article 117 

 Types of Financial Bills under Article 117 

Article 117(1): 

• Involves provisions that come within the definition of a Money Bill but are not solely Money Bills. 
• Can be introduced only in Lok Sabha. 
• Requires President’s recommendation before introduction. 

 Article 117(3): 

• Involves matters that would result in expenditure from the Consolidated Fund of India. 
• Can be introduced in either House of Parliament. 
• Does not need President’s recommendation for introduction. 
• However, cannot be passed by either House unless the President recommends its consideration. 

 Role of Rajya Sabha: Rajya Sabha can reject or amend Financial Bills like ordinary bills.