Money Bill UPSC 2024
Which of the following statements are correct in respect of a Money Bill in the Parliament?
1. Article 109 mentions special procedure in respect of Money Bills.
2. A Money Bill shall not be introduced in the Council of States.
3. The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it.
4. Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha.
Select the answer using the code given below:
(a) 1 and 2 only (b) 2 and 3 only
(c) 1, 2 and 3 (d) 1, 3 and 4
Ans. C
- Statement 1 is Correct. Article 109, of the Indian Constitution outlines the special procedure in respect of money bill.
- Statement 2 is correct. Article 109(1) states a Money Bill shall not be introduced in the Council of States. [A Money Bill can only be introduced in the Lok Sabha (House of the People) and not in the Rajya Sabha (Council of States)].
- Statement 3 is correct. The Rajya Sabha can only recommend amendments to a Money Bill within 14 days. The Lok Sabha may choose to accept or reject these recommendations.
- Statement 4 is incorrect. The Lok Sabha is not obligated to accept any amendments suggested by the Rajya Sabha to a Money Bill.
Know More
Money Bill is a type of legislation in parliamentary systems, particularly in countries like India and the United Kingdom, that deals primarily with financial matters. Here’s a breakdown:
- Definition and Scope: A Money Bill exclusively concerns issues related to national taxation, borrowing of money by the government, or expenditure from the government treasury. This includes proposals for the imposition, abolition, remission, alteration, or regulation of taxes and duties.
- Procedure: In India, for instance, a Money Bill can only be introduced in the Lok Sabha (the lower house of Parliament). The Rajya Sabha (the upper house) can suggest amendments, but the Lok Sabha has the final say. The Bill must be returned to the Lok Sabha with any suggested changes within 14 days, or it is deemed to be approved without amendments.
- Distinctive Features:
- No Debate on Money Bills: The Rajya Sabha can only make recommendations on Money Bills; it cannot reject or amend them.
- Presidential Assent: Once passed by both houses, a Money Bill requires the President’s assent to become law, similar to other types of bills.
- Importance: This mechanism ensures that financial matters are tightly controlled and monitored by the elected lower house, reflecting the principle that elected representatives should primarily manage public finances.
Money Bills play a crucial role in maintaining the financial integrity and accountability of the government.
Money bill UPSC vs Finance Bill
A Money Bill and a Finance Bill are two types of financial legislation in India, both of which deal with financial matters, but they have different definitions and processes.
1. Money Bill:
A Money Bill is defined under Article 110 of the Indian Constitution and deals exclusively with matters specified in this article. These matters include:
- Taxation: Imposition, abolition, remission, alteration, or regulation of any tax.
- Government borrowing: Regulation of borrowing of money or giving of any guarantee by the Government of India.
- Consolidated Fund: Custody of the Consolidated Fund or Contingency Fund of India, or the payment of moneys into or withdrawal from these funds.
- Expenditure: Appropriation of moneys from the Consolidated Fund of India.
- Audit of accounts of the Union or of a State.
A Money Bill can be introduced only in the Lok Sabha (the lower house of Parliament) and can only be introduced by a minister, usually the Finance Minister. The Rajya Sabha (upper house) can only make recommendations for amendments, which the Lok Sabha may accept or reject. The Rajya Sabha must return the bill to the Lok Sabha within 14 days. If not, the bill is deemed to have been passed by both Houses of Parliament.
Key Features:
- Can only be introduced in the Lok Sabha.
- Rajya Sabha has limited power.
- Certified by the Speaker of the Lok Sabha as a Money Bill.
2. Finance Bill:
A Finance Bill is a broader category and is defined under Article 117 of the Indian Constitution. It deals with financial matters but includes other general legislative provisions as well. There are two types of Finance Bills:
- Finance Bill (I): It includes provisions related to financial matters like taxation, expenditure, etc., but it contains provisions that are not exclusively related to the subjects mentioned in Article 110. Such bills follow the normal legislative procedure like ordinary bills, and they need to be passed by both the Lok Sabha and the Rajya Sabha.
- Finance Bill (II): It includes all the matters mentioned in Article 110 (Money Bill matters), but it is broader in scope and may include additional provisions. It is usually introduced with the annual Budget and follows the same procedure as a Money Bill.
Key Features:
- Finance Bill (I) requires the approval of both Lok Sabha and Rajya Sabha.
- Finance Bill (II) can be considered a Money Bill if it meets all the criteria of a Money Bill but contains other financial provisions as well.
In short, while all Money Bills UPSC are a subset of Finance Bills, not all Finance Bills are Money Bills. A Money Bill deals only with matters specifically listed in Article 110, while Finance Bills may cover a broader range of financial issues.
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