Money Bill, Meaning, Types, Notes: The Money Bill is defined in Article 110 of the Constitution of India. Money bills, as the name indicates, cover financial matters including taxation, government spending, etc. The bill is essential for Indian politics and governance because it focuses on various necessary subjects, including the Aadhar Bill and the Insolvency and Bankruptcy Bill. Money Bill is introduced in the Lok Sabha. In the Lok Sabha, it must be passed by a simple majority of all members who are present and voting. In this article, we will look into the meaning, types, characteristics, articles, and constitutional provisions of the Money Bill.
What is Money Bill?
According to Article 110, a “Money Bill” is a bill comprising laws governing taxes, the government’s borrowing policies, and the use of funds from the Consolidated Fund of India. A money bill India involves the imposition, abolition, remission, change, or regulation of any tax, according to the Constitution. However, the bill does not contain local taxes. The Rajya Sabha’s (Upper House) suggestions may be included in Financial Bills, although they are not obliged to be included in Money Bills. The Lok Sabha has the authority to reject the Rajya Sabha’s recommendations regarding Money Bills.
Provisions of Money Bill
Article 110 of the Indian Constitution addresses money bills in India. Few conditions must be met for a bill to qualify as a money bill. The following provisions define what constitutes an Indian money bill:
Provisions for Money Bill in India are as follows:-
Characteristics of Money Bill
Following are some characteristics of Money Bill in India:
- It covers taxation, union government spending, credits, consolidated money, etc.
- Only in the Lok Sabha can it be introduced.
- It must come with a prior recommendation from the President.
- The money bill can only be introduced and passed by a minister.
- A money bill needs the Speaker’s certification.
- The bill cannot be amended by Rajya Sabha. It can only suggest changes.
- The Rajya Sabha must send the bill back to the Lok Sabha within 14 days.
- The Lok Sabha is granted all authority.
- There are no Joint Committee provisions.
- A division of the financial bill is the money bill.
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Types of Money Bill
There are two types of Money Bills in India:
Appropriation Bill
The Indian Constitution’s Article 114 discusses the Appropriation Bill. The government is given permission to use money from the consolidated fund throughout a fiscal year by this bill.
Finance Bill
To put the government’s financial plans into effect for the upcoming fiscal year, this measure is introduced in Lok Sabha immediately following the presentation of the union budget. All finance bills are money bills; however, the definition of a finance bill is found in Rule 219 of the Lok Sabha’s Rules and Procedures.
How does a Money Bill become an Act?
The Indian Constitution specifies an organized procedure that must be followed in order to turn a bill into an act. Three readings constitute the procedure:
First Reading
The money bill is presented in the Lok Sabha, the lower house of Parliament, in the first reading. The member in charge presents the bill’s key provisions to the house before the bill is published in the Official Gazette (public newspaper). Rajya Sabha does not allow the introduction of money bills. As a result, the first reading procedure in the Rajya Sabha differs from that in the Lok Sabha. The Rajya Sabha receives the bill at the first reading.
Second Reading
There are two further stages for the second reading. A general examination of the bill’s guiding concepts occurs during the first stage. On behalf of the general public, delegates from various states and union territories express their opinions. The measure is discussed clause-by-clause during the second stage. Through discussions, every clause and subclause is examined in depth. If a majority of the house requests it, the bill may be amended in any manner that is necessary. The Rajya Sabha follows the same process, although it is unable to change the bill at the second stage, even if it so chooses. The Rajya Sabha is only permitted to suggest amendments.
Third Reading
During the third reading of the Lok Sabha, the money bill is presented to a vote. The money bill will be presented to the upper house if it is approved by a simple majority in the lower house. The money bill is placed to the vote in the Rajya Sabha in the same manner as it is in the Lok Sabha. The bill is subsequently presented to the President for his approval following these three readings. The President’s approval makes the money bill an Act as soon as it does.
Role of Lok Sabha in Money Bill
A money bill may be introduced directly in the Lok Sabha, the lower house of the Parliament. The President must approve the money bill in advance before it can be introduced in the Lok Sabha. It is then presented in Rajya Sabha after being approved by the Lok Sabha. If the measure doesn’t pass with a majority in Lok Sabha, the present government is said to have lost.
Role of Speaker in Money Bill
The speaker has a major role to play in the money bill matter. The Speaker of the Lok Sabha has the authority to officially declare and certify a measure as a money bill before sending it to the Rajya Sabha if there is any doubt regarding whether it is a money bill or not after it has been introduced in the Lok Sabha. The speaker is under no need to consult anyone before making a decision in this regard, and his decision is final and cannot be overturned. The certification of a money bill serves to prevent the upper house from amending it by adding measures that go beyond those in Article 110(1). If the bill is not certified by the speaker as a money bill, it will not be called a money bill.
Restricted Powers of Rajya Sabha in Money Bill
The Rajya Sabha receives the money bill after the Lok Sabha approves it. Although the Rajya Sabha has little authority over money bills, it is yet permitted to make amendment suggestions (Article 109 of the Indian Constitution). Furthermore, whether or not the Lok Sabha adopts the Rajya Sabha’s recommendations depends on them. Within 14 days of receiving the bill, Rajya Sabha is required to send it back to Lok Sabha with or without recommendations.
Money Bill and Veto Power
A money bill cannot be introduced in Lok Sabha without the President’s prior approval. Furthermore, because the measure was submitted in the Lok Sabha with his agreement if it is approved by both houses and goes to the President for his signature, he cannot send it back for reconsideration. As a result, the President is unable to use his veto authority over money legislation.
The Aadhar Act, 2016 and Money Bill
The NDA Government introduced the Aadhar (Targeted Delivery of Financial and Other Subsidies, Benefits, and Services) Bill in the Lok Sabha in 2016. This bill was submitted as a money bill, and the Speaker further certified it as such. The bill was approved by the Lok Sabha because the NDA has a majority there. The Rajya Sabha attempted to amend the bill, which was beyond their authority because the bill had been introduced as a money bill, but it was not passed due to a lack of support from the ruling government in the Rajya Sabha. Contrarily, the opposition opposed designating the Aadhar Bill as a Money Bill. As a result, a challenge was brought before the Supreme Court asking for a judicial review of the Speaker’s designation of the Aadhar Bill as a Money Bill.
The petitioner’s arguments regarding the Aadhar Bill’s eligibility as a money bill were rejected by the former Chief Justice of India, Dipak Misra. He concluded that because Section 7 of the Aadhar Act specifies that payments for subsidies and other welfare programs will come from the Consolidated Fund of India, the Aadhar Bill is eligible to be classified as a money bill. Following the SC’s decision, the bill was reintroduced in Lok Sabha, sent to Rajya Sabha, and returned with recommendations for changes. The Aadhar Act, 2016 was enacted by the Lok Sabha after it accepted the Rajya Sabha’s recommendations and after receiving the President’s approval.
Article 117 of Indian Constitution – Financial Bill
Financial Bills in the Indian Constitution are categorized into two types: Financial Bill (I) and Financial Bill (II).
Financial Bill (I) – Article 117(1):
- Contains matters related to Article 110 (Money Bill) and other financial aspects.
– Similarities with Money Bill:
- Introduced only in Lok Sabha.
- Introduced on the President’s recommendation.
– Differences from Money Bill:
- Can be rejected or amended by the Rajya Sabha.
- Provision for a joint sitting summoned by the President in case of deadlock.
- President can assent, withhold, or return the bill for reconsideration.
Financial Bill (II) – Article 117(3):
- Solely deals with expenditure from the Consolidated Fund of India, excluding money bill matters (Article 110).
- Treated as an ordinary bill.
- Special Feature: Requires the President’s recommendation for consideration.
- Can be rejected or amended by either House of Parliament.
- Provision for a joint sitting summoned by the President in case of deadlock.
- President can assent, withhold, or return the bill for reconsideration.
Understanding these bills is crucial to grasp the legislative process in the Indian Parliament, particularly the distinction between money bills and financial bills.
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FAQs on Money Bill of Article 110 Constitution of India
Q1. What is the Money Bill of India?
According to Article 110 of the constitution of India, a “Money Bill” is a bill comprising laws governing taxes, the government’s borrowing policies, and the use of funds from the Consolidated Fund of India.
Q2. Who introduces Money Bill in India?
Only a minister is authorized to introduce a Money Bill in the Lok Sabha. The budget is included in this. The Prime Minister is first shown this budget before it is presented to the Parliament.
Q3. Who passes Money Bill?
The Lok Sabha passes the Money Bill with a simple majority of all members who are present and voting. The Rajya Sabha may then send it for recommendations, which the Lok Sabha may accept or reject as it sees fit.
Q4. Can Rajya Sabha reject a Money Bill?
A money bill cannot be changed or rejected by Rajya Sabha. Within 14 days, it must send the bill back to the Lok Sabha, either with or without recommendations.
Q5. Difference Between Money Bill & Financial Bill in India for UPSC.
Money Bill:
– Article: Article 110
– Meaning: Exclusively deals with financial matters as defined in Article 110.
– Form: Government Bill
– Introduced In: Lok Sabha only
– President’s Prior Approval: Required
– Speaker’s Certification: Yes
– Rajya Sabha’s Role: No Role
– Joint Sitting: No Provision
– After President’s Assent: Becomes an act, published in the Indian Statute Book.
Financial Bill:
– Article: Article 117 (I) and Article 117 (II)
– Meaning: Deals with revenue and expenditure.
– Form: Ordinary Bill
– Introduced In: Bills under Article 117 (1) in Lok Sabha only; Bills under Article 117 (3) in both houses.
– President’s Prior Approval: Required
– Speaker’s Certification: No
– Rajya Sabha’s Role: Same role as Lok Sabha
– Joint Sitting: Yes, in case of deadlock
– After President’s Assent: Becomes an act, published in the Indian Statute Book.
Q6. Which article talks about state Money Bill?
A Money Bill, as defined in Article 110 of the Indian Constitution, pertains to financial matters such as taxation and public expenditure.
References:
Article 110 in Constitution of India [indiankanoon.org/]
Money Bills [constitutionofindia.etal.in/]
Description Of The Budget Documents [dea.gov.in/]
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