If any question arises about whether a bill is a Money Bill or not, the decision of the Lok Sabha Speaker is final. His/Her decision cannot be questioned in any court, in either House of Parliament, or even by the President of India.
The Lok Sabha Speaker endorses a bill as a Money Bill, transmits it to the Rajya Sabha for recommendation, and presents it to the President for assent.
Role of Lok Sabha and Rajya Sabha in Money Bills
If any question arises about whether a bill is a Money Bill or not, the decision of the Lok Sabha Speaker is final. His/Her decision cannot be questioned in any court, in either House of Parliament, or even by the President of India.
The Lok Sabha Speaker endorses a bill as a Money Bill, transmits it to the Rajya Sabha for recommendation, and presents it to the President for assent.
What is a Money Bill?
Article 110 of the Indian Constitution defines a Money Bill. According to Article 110, a bill is deemed to be a Money Bill if it contains only provisions dealing with any or all of the following matters:
- Any tax — Regulation, imposition, abolition, remission, or alteration.
- The regulation of borrowing of money by the Union government.
- The custody of the Consolidated Fund of India or the Contingency Fund of India, and the payment or withdrawal of money from any such fund.
- 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 bill is not deemed to be a Money Bill in the following cases:
- Imposition of fines or other pecuniary penalties; or
- Demand or payment of fees for licences or fees for services rendered; or
- Imposition, abolition, remission, alteration, or regulation of any tax by any local body or authority for local purposes.
Money Bill in Rajya Sabha
- After the Money Bill is passed in the Lok Sabha, it is transferred to the Rajya Sabha for its consideration.
- The Rajya Sabha has limited power with regard to Money Bills.
- The Rajya Sabha cannot reject or amend a Money Bill; it can only make recommendations.
- The Rajya Sabha must return the bill to the Lok Sabha within 14 days, with or without recommendations.
Due to the Lok Sabha’s overriding authority, Article 108 regarding a joint sitting of both Houses does not apply to Money Bills, meaning there is no provision for a joint sitting if there is a disagreement.
Article 108. Joint sitting of both Houses in certain cases: The joint sitting of the two houses of the Parliament in India is sanctioned under Article 108 of the Constitution.
Passing of a Money Bill
The Lok Sabha can either accept or reject any or all the recommendations of the Rajya Sabha.
If the Lok Sabha accepts any recommendation, the bill is then deemed to be passed by both houses of Parliament in the modified form.
If the Lok Sabha rejects the recommendation, then the bill is deemed to be passed by both Houses in the original form.
Frequently Asked Questions on Money Bills
- What is a Money Bill?
- What are the features of a Money Bill?
- Who can introduce a Money Bill?
- What is the role of the Rajya Sabha in a Money Bill?
- What happens if the Lok Sabha and the Rajya Sabha disagree on a Money Bill?
- What are the differences between a Money Bill and a Finance Bill?
- What is the importance of Money Bills in the Indian Constitution?
- How have Money Bills been used in the past?
- What are the challenges faced by the government in passing Money Bills?
- How can the government ensure that Money Bills are passed smoothly?
Conclusion
The Lok Sabha has more powers than the Rajya Sabha with regard to the Money Bill. At the end, when a Money Bill is presented to the President, the President can:
- Give assent to the bill or withhold assent.
- Cannot return the bill for reconsideration by the Houses.
Normally, the President gives his/her assent to a Money Bill. This is because the Money Bill is introduced in Parliament with his/her prior permission.
