To protect the interest of states in the financial matters, the Constitution lays down that the following bills can be introduced in the Parliament only on the recommendation of the President:
- A bill which imposes or varies any tax or duty in which states are interested;
- A bill which varies the meaning of the expression ‘agricultural income’;
- A bill which affects the principles on which moneys are or may be distributable to states; and
- A bill which imposes any surcharge on any specified tax or duty for the purpose of the Centre.