FINANCIAL BILL VS MONEY BILL
1. Context
In India, Bills related to revenue and expenditure fall under the category of Financial Bills. However, there is a specific type called Money Bills, which must comply with the provisions outlined in Article 110(1) (a) to (g).
2. About Finance Bill and Money Bill
- A Finance Bill is a type of Financial Bill that deals with revenue and expenditure matters.
- A Money Bill, as defined in Article 110, exclusively pertains to specific subjects like taxes, borrowing, and expenditure from the Consolidated Fund of India.
- The President's recommendation is required to introduce a Finance Bill that deals with matters specified in Article 110(1) (a) to (f), and it can only be introduced in the Lok Sabha.
3. Difference Between Money Bills and Financial Bills
- Origin: Money Bills can only be introduced in the Lok Sabha, while ordinary Financial Bills can be introduced in either House.
- President's Recommendation: Money Bills require the President's recommendation for introduction, while ordinary Financial Bills do not need such recommendation.
- Rajya Sabha's Role: For Money Bills, the Rajya Sabha has a recommendatory role and must return the Bill with recommendations within 14 days. The Lok Sabha can reject these recommendations. In contrast, ordinary Financial Bills can be rejected or amended by the Rajya Sabha.
- Joint Sitting: A joint sitting of both Houses can be summoned by the President to resolve differences over an ordinary Bill, but no such provision exists for Money Bills.
4. Court's Views on Money Bills
- In November 2019, a five-judge Constitution Bench struck down amendments to the 2017 Finance Act, passed as a Money Bill, for altering the structure and functioning of tribunals.
- The court directed the formulation of fresh norms for appointing tribunal members.
- The court referred the issue of whether the amendments could have been passed as a Money Bill to a seven-judge bench for consideration.
5. Doubts Over Aadhaar Act Passed as a Money Bill
- The 2018 verdict upholding the 2016 Aadhaar Act, passed as a Money Bill, came under scrutiny.
- The Bench expressed doubts over the correctness of the previous ruling and its application to the present case.
- CJI Chandrachud, a dissenting judge in the 2018 Aadhaar ruling, criticized the government for passing the Act as a Money Bill, calling it a "fraud on the Constitution."
- Petitions seeking a review of the Aadhaar Act ruling are still pending in the Supreme Court.
6. The Way Forward
- Understanding the distinctions between Money Bills and other Financial Bills is crucial in the Indian legislative process.
- While Money Bills have a restricted role for the Rajya Sabha, other Financial Bills require agreement from both Houses.
- The Supreme Court's recent views on the Aadhaar Act and the Finance Act have added further complexity to the discussion on the appropriate use of the Money Bill route for specific legislation.
|
For Prelims: Money Bill, Financial Bill, Aadhaar Act, Lok Sabha, Rajya Sabha, Finance Act, Supreme Court,
For Mains:
1. What are the constitutional safeguards in place to prevent misuse of the Money Bill? Critically assess the mechanisms to ensure that only appropriate bills are categorized as Money Bills. (250 Words)
|
|
Previous Year Questions
1. Regarding Money Bill, which of the following statements is not correct? (UPSC 2018)
1. A bill shall be deemed to be a money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.
2. A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
3. A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India.
4. A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.
Answer: 3
2. Consider the following statements: (UPSC 2018)
1. Aadhaar card can be used as a proof of citizenship or domicile.
2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority. Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: D
3. Consider the following statements: (UPSC 2015)
1. The Rajya Sabha has no power either to reject or to amend a Money Bill.
2. The Rajya Sabha cannot vote on the Demands for Grants.
3. The Rajya Sabha cannot discuss the Annual Financial Statement.
Which of the statements given above is/are correct?
A. 1 only B. 1 and 2 only C. 2 and 3 only D. 1, 2 and 3
Answer: B
4. With reference to the Indian judiciary, consider the following statements: (UPSC 2021)
1. Any retired judge of the Supreme Court of India can be called back to sit and act as a Supreme Court judge by the Chief Justice of India with the prior permission of the President of India.
2. A High Court in India has the power to review its own judgement as the Supreme Court does.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: C
|
Source: The Indian Express
