What is Money Bill?
‘Money Bills’, the definition is stated in Article 110 of the Indian constitution. Article 110 states that the bill is 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 consolidated funds of India, contingency funds of India, and payment or withdrawal of money from the above-mentioned funds.
- The receipt of money on account of Consolidated Fund of India or the public account of India or custody or issue of such money or audit of the accounts of the Union or of a state, or
A bill is not to be deemed to be a money bill are following:
- Imposition of fines or other pecuniary penalties or
- demand or payment of fees for licence or fees for service rendered; or
- Tax by any local bodies or authority for local purposes.
Money bill Upper and Lower Houses
- 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, 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 Rajya Sabha for recommendation and presents it to President for assent.
Money Bill in Rajya Sabha
- After the money bill is passed in Lok Sabha, it is transferred to Rajya Sabha for its consideration.
- Rajya Sabha has limited power with regard to Money bills.
- Rajya Sabha cannot reject or amend a money bill, it can only make recommendations.
- Rajya Sabha must return the bill to the Lok Sabha within 14 days, with or without recommendation.
The passing of 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 the 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.
Question on Money Bill
- 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?
The Lok Sabha has more powers than 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 his assent.
- But 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 the parliament with his/her prior permission.