The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha yesterday, as a Money Bill [Clarification: This is as per news reports.*  The text of the Bill does not indicate that it is a Money Bill].  In this context, we briefly outline the various types of Bills in Parliament, and highlight the key differences between Money Bills and Financial Bills. What are the different types of Bills? There are four types of Bills, namely (i) Constitution Amendment Bills; (ii) Money Bills; (iii) Financial Bills; and (iv) Ordinary Bills. What are the features of each of these Bills?

  • Constitution Amendment Bills[i]: These are Bills which seek to amend the Constitution.
  • Money Bills[ii]: A Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government, expenditure from or receipt to the Consolidated Fund of India. Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.[iii]
  • Financial Bills[iv]: A Bill that contains some provisions related to taxation and expenditure, and additionally contains provisions related to any other matter is called a Financial Bill. Therefore, if a Bill merely involves expenditure by the government, and addresses other issues, it will be a financial bill.
  • Ordinary Bills[v]: All other Bills are called ordinary bills.

How are these bills passed?

  • Constitution Amendment Bills1: A Constitution Amendment Bill must be passed by both Houses of Parliament. It would require a simple majority of the total membership of that House, and a two thirds majority of all members present and voting.  Further, if the Bill relates to matters like the election of the President and Governor, executive and legislative powers of the centre and states, the judiciary, etc., it must be ratified by at least half of the state legislatures.
  • Money Bills[vi]: A Money Bill may only be introduced in Lok Sabha, on the recommendation of the President. It must be passed in Lok Sabha by a simple majority of all members present and voting.  Following this, it may be sent to the Rajya Sabha for its recommendations, which Lok Sabha may reject if it chooses to.  If such recommendations are not given within 14 days, it will deemed to be passed by Parliament.
  • Financial Bills4: A Financial Bill may only be introduced in Lok Sabha, on the recommendation of the President. The Bill must be passed by both Houses of Parliament, after the President has recommended that it be taken up for consideration in each House.
  • Ordinary Bills5: An Ordinary Bill may be introduced in either House of Parliament. It must be passed by both Houses by a simple majority of all members present and voting.

How is a Money Bill different from a financial bill? While all Money Bills are Financial Bills, all Financial Bills are not Money Bills.  For example, the Finance Bill which only contains provisions related to tax proposals would be a Money Bill.  However, a Bill that contains some provisions related to taxation or expenditure, but also covers other matters would be considered as a Financial Bill.  The Compensatory Afforestation Fund Bill, 2015, which establishes funds under the Public Account of India and states, was introduced as a Financial Bill.[vii] Secondly, as highlighted above, the procedure for the passage of the two bills varies significantly.  The Rajya Sabha has no power to reject or amend a Money Bill.  However, a Financial Bill must be passed by both Houses of Parliament. Who decides if a Bill is a Money Bill? The Speaker certifies a Bill as a Money Bill, and the Speaker’s decision is final.[viii]  Also, the Constitution states that parliamentary proceedings as well as officers responsible for the conduct of business (such as the Speaker) may not be questioned by any Court.[ix]


  [i]. Article 368, Constitution of India. [ii]. Article 110, Constitution of India. [iii]. Article 110 (1), Constitution of India. [iv]. Article 117, Constitution of India. [v]. Article 107, Constitution of India. [vi]. Article 109, Constitution of India. [vii]. The Compensatory Afforestation Fund Bill, 2015, introduced in Lok Sabha on May 8, 2015, http://www.prsindia.org/billtrack/the-compensatory-afforestations-fund-bill-2015-3782/. [viii]. Article 110 (3), Constitution of India. [ix]. Article 122, Constitution of India. [*Note: See Economic Times, Financial Express, The Hindu Business LineNDTV ,etc.]

As of April 30, Telangana has 1,012 confirmed cases of COVID-19 (9th highest in the country).  Of these, 367 have been cured, and 26 have died.  In this blog, we summarise some of the key decisions taken by the Government of Telangana for containing the spread of COVID-19 in the state and relief measures taken during the lockdown.

Movement Restrictions

For mitigating the spread of COVID-19 in the state, the Government of Telangana took the following measures for restricting the movement of people in the state.

Closure of commercial establishments: On March 14, the government ordered for the closure of cinema halls, amusement parks, swimming pools, gyms and museums until March 21 which was later extended to March 31.

Lockdown:  To further restrict the movement of people, the state and central governments announced lockdown in the state and country.  The lockdown included: (i) closing down state borders, (ii) suspension of public transport services, (iii) prohibiting congregation of more than five people.  The entities providing essential commodities and services were exempted from these restrictions.

 

 

 

 

 

 

 

 

 

 

 

Starting from April 20, the central government allowed certain activities in less-affected districts of the country.  However, on April 19, the state government decided not to allow any relaxation in Telangana until May 7.

Health Measures

Telangana Epidemic Diseases (COVID-19) Regulations, 2020: On March 21, the government issued the Telangana Epidemic Diseases (COVID-19) Regulations, 2020.  The regulations are valid for one year.  Key features of the regulations include:

 (i) All government and private hospitals should have dedicated COVID-19 corners,

 (ii) People who had travelled through the affected areas should be home quarantined for 14 days,

(iii) Procedures to be followed in the containment zones among others.

Private Hospitals: On March 22, for increasing the availability of healthcare facilities in the state, the government issued an order prohibiting private hospitals from performing any elective surgeries.  The hospitals were also instructed to have separate counters for respiratory infections.

Increasing the health workforce in the state: On March 30, the government issued notification for the recruitment of medical professionals on a short term basis.

Prohibition on spitting in public places: On April 6, the Department of Health, Medical and Family Welfare department banned spitting of paan, any chewable tobacco or non-tobacco product, and sputum in public places.

Welfare measures

To mitigate the hardships faced by the people, the government took various welfare measures. Some of them are summarized below:

Relief assistance: On March 23, the government announced the following measures:  

  • 12 kg of rice will be provided for free to all food security cardholders.
  • One-time support of Rs 1,500 will be provided to all food security card holding families for buying essential commodities such as groceries and vegetables.

Factories: On March 24, the government directed the management of factories to pay the wages to all workers during the lockdown period.  

Migrant Workers: On March 30, the government decided to provide 12 kg of rice or atta and one time of support of Rs 500 to all migrant workers residing in the state.

Regulation of school fees: On April 21, the government ordered all private schools not to increase any fees during the academic year of 2020-21.  The schools will charge only tuition fees on a monthly basis. 

Deferment of collection of rent: On April 23, the government notified that house owners should defer the rent collection for three months.  Further, the owners should collect the deferred amount in instalments after three months.

Administrative Measures

Deferment of salaries: The government announced 75% deferment of salaries of all the state legislators,  chairperson of all corporations and elected representatives of all local bodies.  The government employees will have salary deferment from 10% to 60%.  Employees of the  Police Department, Medical and Health Department, and sanitation workers employed in all Municipal Corporations and Municipalities are exempted from deferment of salary.

Chief Minister's Special Incentives: The government granted special incentives to certain categories of employees as follows:

  • Medical and Health Department:  The employees of the Department of Medical and Health were given an additional 10% of their gross salary as an incentive for March and April,
  • Sanitation personnel: The sanitation employees of Greater Hyderabad Municipal Corporation were given 7,500 rupees and the sanitation personnel of other local bodies were provided 5,000 rupees as incentives for March and April,
  • Police: The police personnel were awarded an additional 10% of their gross salary as an incentive for April. 

For more information on the spread of COVID-19 and the central and state government response to the pandemic, please see here.