Answer By law4u team
Constitution of India Article 207: Special Provisions as to Financial Bills
(1) A Bill or amendment making provision for any of the matters specified in sub-clauses (a) to (f) of clause (1) of article 199 shall not be introduced or moved except on the recommendation of the Governor, and a Bill making such provision shall not be introduced in a Legislative Council:
Provided that no recommendation shall be required under this clause for the moving of an amendment making provision for the reduction or abolition of any tax.
(2) A Bill or amendment shall not be deemed to make provision for any of the matters aforesaid by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.
(3) A Bill which, if enacted and brought into operation, would involve expenditure from the Consolidated Fund of a State shall not be passed by a House of the Legislature of the State unless the Governor has recommended to that House the consideration of the Bill.
Brief Detail
Article 207 lays down special provisions regarding the introduction and passage of financial bills in State Legislatures. It mandates that any Bill related to taxation, expenditure, or financial matters cannot be introduced without the Governor’s recommendation. Additionally, no financial bill that involves expenses from the Consolidated Fund of a State can be passed without the Governor's approval.
Question & Answers
What is the significance of Article 207 in financial legislation?
Article 207 ensures that financial bills, especially those involving taxation or state expenditure, require the Governor’s recommendation before introduction, thereby maintaining financial discipline and executive control over public funds.
Can any financial bill be introduced without the Governor's recommendation?
No, except in cases where the bill involves reducing or abolishing an existing tax, in which case the Governor's recommendation is not required.
Example
For instance, if a State Government proposes a new tax on property transactions, it must first seek the Governor’s recommendation before introducing the Bill in the Legislature. However, if the Bill aims to reduce an existing tax, it can be introduced without prior recommendation.
Summary
Article 207 regulates the introduction and passage of financial bills in State Legislatures, ensuring that taxation and state expenditure remain under executive oversight. It requires the Governor’s recommendation for financial proposals that impact public funds, safeguarding financial stability and discipline in governance.
