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Money Bill (Article 110) | UPSC Polity

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Money Bill

Introduction

A Bill is a Money Bill only if it contains only provisions related to financial matters specified in Article 110.

Matters Covered under Money Bill

As per Article 110, a Bill is deemed a Money Bill if it deals with:

  1. Imposition, abolition, remission, alteration, or regulation of any tax
  2. the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India
  3. Custody, payment into, or withdrawal from the Consolidated Fund of India (CFI) or Contingency Fund of India
  4. Appropriation of money out of the Consolidated Fund of India
  5. Declaring any expenditure as charged on the Consolidated Fund or increasing such expenditure
  6. 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; or
  7. Any matter incidental to the above

What is not a Money Bill?

A Bill is not a Money Bill merely because it provides:

  • for the imposition of fines or other pecuniary penalties or
  • payment of fees for licences or
  • fees for services rendered or
  • for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

Role of the Speaker

  • The Speaker of the Lok Sabha has the authority to decide whether a Bill is a Money Bill or not.If any question arises as to whether a Bill is a Money Bill or not, the decision of the Speaker of the Lok Sabha shall be final. Such a decision cannot be questioned in either House of Parliament or before the President or in any court of law.
  • Speaker’s Certification:When a Money Bill is transmitted to the Rajya Sabha for its recommendations and when it is presented to the President for assent, it is endorsed with a certificate by the Speaker of the Lok Sabha declaring that it is a Money Bill.

Special Procedure for Passing of Money Bills

Money Bills follow a special legislative procedure in Parliament, reflecting the principle of financial supremacy of the Lok Sabha.

Introduction in Lok Sabha

  • A Money Bill can be introduced only in the Lok Sabha and that too only on the recommendation of the President.

Passing in Lok Sabha

  • The Bill is passed by a simple majority of members present and voting.

Transmission to Rajya Sabha

  • After being passed by the Lok Sabha, the Money Bill is sent to the Rajya Sabha for its recommendations.

Role of Rajya Sabha

  • The Rajya Sabha cannot amend or reject a Money Bill. It can only recommend amendments within 14 days from the date of receipt.

Lok Sabha’s Power over Recommendations

  • The Lok Sabha may either accept or reject all or any of the recommendations made by the Rajya Sabha.

If Rajya Sabha does not act

  • If the Rajya Sabha does not return the Bill within 14 days, the Bill is deemed to have been passed by both Houses in the form originally passed by the Lok Sabha.

Final Passage

  • If the Lok Sabha accepts any recommendations of the Rajya Sabha, the Bill is deemed to have been passed in the modified form. If it rejects them, the original version prevails.

President’s Assent (Article 111)

  • After passage, the Bill is presented to the President, who may either give assent or withhold assent. The President cannot return a Money Bill for reconsideration.

Quick Revision

  • Article 109: It lays down the special procedure for the passing of Money Bills in Parliament, giving overriding powers to the Lok Sabha and limiting the role of the Rajya Sabha to recommendations within 14 days.
  • Article 110: It defines a Money Bill as one that contains only provisions dealing with specified financial matters such as taxation, borrowing, and expenditure from the Consolidated Fund of India.
  • Article 111: It deals with the President’s assent to Bills, under which the President may give assent or withhold assent, but cannot return a Money Bill for reconsideration.

Definition

  • A Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government, expenditure from or receipt to the Consolidated Fund of India. Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.

The Money Bill mechanism, enshrined in Article 110 of the Indian Constitution, is designed to give the directly elected Lower House (Lok Sabha) final authority over public finance, thereby strengthening democratic accountability. 

FAQs 

Q1. What is a Money Bill?

A Money Bill is a bill that deals exclusively with financial matters specified under Article 110 of the Constitution.

Q2. Who decides whether a Bill is a Money Bill?

The Speaker of the Lok Sabha.

Q3. Can Rajya Sabha reject a Money Bill?

No, it can only make recommendations within 14 days.

Q4. Can there be a joint sitting for a Money Bill?

No.

Q5. Can the President return a Money Bill?

No, the President cannot return a Money Bill for reconsideration.

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