Important points for Money Bill
Table of Content
Money Bill
Money Bill
- Article 110 of Indian Constitution deals with Money Bill in India.
- There are few provisions for a bill to be deemed as a money bill.
- The provisions that make a bill a money bill in India are given below:
- The change (imposition, abolition, remission, alteration or regulation) of any tax.
- The regulation of the borrowing of money by the Union government.
- Related to Consolidated fund of India or contingency fund of India
- The custody of these funds.
- The payment of money into or the withdrawal of money from any such fund.
- The appropriation of money out of the Consolidated Fund of India.
- Declaration of any expenditure charged on the Consolidated Fund of India or increasing 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.
- Any matter incidental to any of the matters specified above.
Article 110 also tells which is NOT a Money bill
- Article 110 of the Indian Constitution also gives provisions following which a bill cannot be deemed as a money bill.
- A Bill can’t be a Money bill if provisions are:
- Imposition of fines or other pecuniary penalties
- Demand or payment of fees for licenses or fees for services rendered.
- Imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.
Procedure for Money Bill
- Unlike Ordinary Bill, Money bill is introduced only in Lok Sabha on the recommendation of President which is a must.
- Money bills are introduced only by the minister.
- After Lok Sabha passes the bill, it is moved to Rajya Sabha which has only restricted powers. It cannot reject or amend the bill.
- Rajya Sabha has to return the bill within 14 days with or without recommendations of the amendments
- If it does not return the bill within the prescribed days, the bill is deemed to have been passed
- Lok Sabha may or may not accept the amendments.
- After passing through both the houses, the President’s assent is required. He can take two actions:
- Give assent
- Withhold assent
- President can’t return the bill for reconsideration
Finance Bills
- Not all financial bills are money bill.
- Financial Bills are dealt with under Articles 117 (1) and Article 117 (3).
About Financial Bills (I):
It is defined as a bill that contains matters not only related to Article 110 (Money Bill) but also other matters of finances.
Its similarity with money bill:
It is introduced only in Lok Sabha similar to Money Bill.
It is introduced only on the recommendation of President.
Its difference with money bill:
It can be either rejected or amended by the Rajya Sabha which is not the case with money bill.
There is a provision of joint sitting summoned by President in case of deadlock.
President can give his assent, withhold the bill or can even return the bill for reconsideration.
About Financial Bills (II):
It is defined as a bill that solely deals with provisions involving expenditure from the Consolidated Fund of India and does not include any matter of money bill (Article 110.)
It is treated as an ordinary bill in all respects unlike Financial Bill (I)
Special Feature: It cannot be passed by either house of the Parliament unless the President has recommended them for consideration of the bill
It can be either rejected or amended by either House of Parliament
There is a provision of joint sitting summoned by President in case of deadlock
President can give his assent, withhold the bill or can even return the bill for reconsideration
Money bill in News
- (21 Jan 2021) :
- The Supreme Court, in a majority view, has dismissed a series of petitions seeking a review of its 2018 judgment upholding the Lok Sabha Speaker’s certification of Aadhaar law as a Money Bill and its subsequent passage in Parliament.
What has the Court said?
Speaker’s decision could be challenged in court only under “certain circumstances”.
The Aadhaar Act was rightly called a Money Bill.
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