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Constitution of India · Part VI: The States · Procedure in Financial Matters

Article 207: Special provisions as to financial Bills

In plain words

A Bill or amendment on the money matters in sub-clauses (a) to (f) of clause (1) of article 199 can be introduced only on the Governor's recommendation, and such a Bill cannot start in a Legislative Council. No recommendation is needed for an amendment that reduces or abolishes a tax.

  • Providing for fines, penalties, licence fees, fees for services or local taxes does not by itself bring a Bill within this rule.
  • A Bill that would involve spending from the State's Consolidated Fund cannot be passed by a House unless the Governor has recommended that House to consider it.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

(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.

Source: India Code (Legislative Department), the official text of the Constitution of India. As amended up to the Constitution (One Hundred and Sixth Amendment) Act, 2023. Text as on 10 September 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the article 207