The Department of Law and Justice has issued a circular regarding the handling of Money Bills under the Constitution of India. Under Article 199(1) of the Constitution of India, the following bills are deemed to be Money Bills:

a) The imposition, abolition, remission, alteration, or regulation of any tax.

b) The regulation of borrowing money or providing guarantees by the State, or amending laws related to financial obligations.

c) The custody of the Consolidated Fund or Contingency Fund of the State, along with the deposit and withdrawal of funds from these funds.

d) The appropriation of funds from the Consolidated Fund of the State.

e) The withdrawal of funds from the Consolidated Fund of the State or increasing expenditure.

f) The receipt of funds for the Consolidated Fund of the State or the public account of the State, and the management and issuance of such funds.

g) Any matter incidental to the above-listed subjects (a) to (f).

In addition, Article 207(1) of the Constitution mandates the recommendation of the Governor for moving or introducing Money Bills or amendments in the Legislative Assembly, except bills related to the reduction or abolition of taxes.

Hence, all government departments have been instructed to ensure that they obtain prior recommendations from the Governor before moving or introducing Money Bills or amendments in the Legislative Assembly, except in cases of reducing or abolishing taxes.