MONEY BILL
Article 110 of the Constitution of India pertains to the definition and procedure of passing a Money Bill in the Parliament. According to this article, a Money Bill exclusively contains provisions dealing with all or any of the following matters:
- The imposition, abolition, remission, alteration, or regulation of any tax.
- The regulation of the borrowing of money by the Government of India, including the giving of any guarantee by the Indian government for the purpose of securing a loan or the repayment of any money borrowed by it.
- The custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund.
- The appropriation of moneys out of the consolidated Fund of India.
- The declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure.
- The receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State.
A Money Bill can only be introduced in the Lok Sabha (House of the People), and it cannot be introduced in the Rajya Sabha (Council of States). The Rajya Sabha can only make recommendations on a Money Bill, and the Lok Sabha can either accept or reject these recommendations. The Rajya Sabha cannot amend a Money Bill, and if it is not returned by the Rajya Sabha within 14 days, it is deemed to have been passed by both houses
The decision regarding whether a bill is a Money Bill or not rests with the Speaker of the Lok Sabha (House of the People) in the Indian parliamentary system. As per Article 110 of the Indian Constitution, the Speaker is responsible for certifying whether a bill is a Money Bill or not.
Here is the process involved:
-
Introduction in Lok Sabha: A bill is introduced in either the Lok Sabha or the Rajya Sabha. If it is introduced in the Lok Sabha and the Speaker is of the opinion that it exclusively deals with matters listed in Article 110, it may be certified as a Money Bill.
-
Certification by the Speaker: The Speaker examines the provisions of the bill and determines whether it falls within the definition of a Money Bill as specified in Article 110. If the Speaker certifies it as a Money Bill, the bill is deemed to be so.
-
Presentation to Rajya Sabha: After the Speaker's certification, the Money Bill is sent to the Rajya Sabha for its recommendations. However, the Rajya Sabha's powers regarding a Money Bill are limited. It can only make recommendations, and the Lok Sabha is not bound to accept them.
-
President's Assent: Once the Lok Sabha passes the Money Bill, it is sent to the President for assent. The President's role is mostly formal, and the President cannot withhold assent to a Money Bill. If the President gives assent, the Money Bill becomes law
| Subject | Money Bill | Ordinary Bill |
|---|---|---|
| Initiation | Can only be introduced in Lok Sabha (LS). | Can be introduced in either Lok Sabha or Rajya Sabha. |
| Certification | Requires certification by the Speaker of LS. | Does not require certification by the Speaker. |
| Scope | Deals exclusively with financial matters listed in Article 110. | Covers a wide range of subjects, including non-financial matters. |
| Role of Rajya Sabha | Rajya Sabha can only make recommendations, no power to reject or amend. | Rajya Sabha has the power to suggest amendments and can reject the bill. |
| Timeframe for Rajya Sabha | Rajya Sabha must return it within 14 days; otherwise, it is deemed passed. | Rajya Sabha has the usual time for discussion, amendments, and decision. |
| President's Assent | President cannot withhold assent; mandatory approval. | President can use discretionary powers, and assent is not mandatory. |
| Usage and Importance | Primarily deals with financial matters like taxation and government spending. | Encompasses a wide range of legislative subjects, both financial and non-financial. |
| Examples | Budget-related bills, finance bills, appropriation bills. | Social, economic, or legislative reforms, not necessarily tied to financial matters. |
A Finance Bill is a type of legislation presented in a country's parliament that outlines the government's proposals related to taxation, government spending, and other financial matters for a specific fiscal year. The primary purpose of a Finance Bill is to give legal effect to the fiscal policies announced by the government in the annual budget.
Key features of a Finance Bill include:
-
Taxation Proposals: The Finance Bill contains provisions related to changes in taxes, duties, and levies. It may introduce new taxes, amend existing tax rates, or provide exemptions.
-
Appropriation of Funds: The bill includes details about the allocation and appropriation of funds for various government expenditures. It outlines how the government plans to collect and spend money during the fiscal year.
-
Government Spending: The Finance Bill specifies the government's planned expenditures across different sectors, such as education, healthcare, defense, infrastructure, and more.
-
Economic Policies: It may contain measures to stimulate economic growth, control inflation, or address other macroeconomic concerns.
-
Implementation of Budget Proposals: The Finance Bill is presented in conjunction with the annual budget, and it seeks to implement the financial proposals outlined in the budget speech delivered by the Finance Minister.
-
Parliamentary Approval: In many parliamentary systems, the Finance Bill must be approved by the legislature to become law. It goes through the normal legislative process, including debates, committee scrutiny, and voting.
In some countries, including India, a specific type of Finance Bill is known as the "Money Bill." A Money Bill exclusively deals with matters specified in the constitution, such as taxation, borrowing, and expenditure from the consolidated fund. Money Bills have special procedures for introduction and passage, and they require certification by the Speaker of the lower house (e.g., Lok Sabha in India)
|
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: Indianexpress
