Article 117 is a provision in the Constitution of India that lays down the special procedure for the introduction and passage of Financial Bills in Parliament. The concept originated from Draft Article 97, which was debated on June 10, 1949, to establish a structured pathway for financial legislation and ensure executive oversight over public finances. It acts as a critical gatekeeper for the nation's finances, ensuring that laws with financial implications are carefully scrutinized.
The Article distinguishes between two categories of Financial Bills. Article 117(1) deals with Financial Bills (Category I), which contain provisions related to the matters specified in Article 110(1)(a) to (f) (Money Bill matters) but also include other general legislative matters. A Bill under Article 117(1) can only be introduced in the Lok Sabha (House of People) and requires the President's recommendation before its introduction. However, no such recommendation is needed for an amendment that provides for the reduction or abolition of any tax.
The second category, Financial Bills (Category II), is covered by Article 117(3). These Bills solely involve expenditure from the Consolidated Fund of India but do not contain any matters listed in Article 110. A Bill under Article 117(3) can be introduced in either House of Parliament, but it cannot be passed by either House unless the President has recommended its consideration.
Article 117 is closely connected to Article 110, which defines a Money Bill, and Article 108, which provides for a joint sitting of both Houses to resolve a deadlock over a Financial Bill. This framework ensures that the executive, which manages the nation's finances, has the power to initiate financial legislation, while the legislature retains the ultimate power of oversight. The Constitution of India, 1950, established this procedure, and the core provisions remain the same.