What is a Money Bill in India - Indian Polity Notes

Money Bill, which is concerned with financial matters like taxation, public expenditure, etc., is defined in Article 110 of the Indian Constitution. The bill is vital for Indian polity and governance since it touches on a number of critical areas, including the Aadhar Bill and the Insolvency and Bankruptcy Bill. This article will go through the basics of a Money Bill in India, including its definition, provisions, etc.

What is a Money Bill in India?

Article 110 of the Indian Constitution deals with the money bill in India. There are just a few provisions that allow a law to be considered a money bill which are as follows:

1. Imposition, abolition, remission, alteration, or regulation of any tax;
2. Regulation of the borrowing of money by the Union government;
3. Custody of the Consolidated Fund of India or the contingency fund of India, the payment of money into or the withdrawal of money from any such fund;
4. Appropriation of money out of the Consolidated Fund of India;
5. Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of any such expenditure;
6. 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 any of the matters specified above.

Article 110 also states some restrictions that prevent a bill from being considered a money bill. The following are the provisions:

1. Imposition of fines or other pecuniary penalties, or
2. Demand for payment of fees for licenses or fees for services rendered; or
3. Imposition, abolition, remission, alteration, or regulation of any tax by any local authority or body for local purposes.

Restriction on Rajya Sabha

• A Money Bill can not be introduced in Rajya Sabha and it can only be introduced in Lok Sabha with the prior recommendation of the President.
• If there is any doubt as to whether a bill is a Money Bill or not, the Speaker's decision is final.
• A Money Bill enacted and transmitted by the Lok Sabha must be returned by the Rajya Sabha within 14 days of its receipt.
• A Money Bill may be returned by Rajya Sabha with or without recommendations and the Lok Sabha has the option of accepting or rejecting all or some of the Rajya Sabha's recommendations.
• If the Rajya Sabha fails to return a Money Bill within the necessary 14-day time, the Bill is presumed to have been enacted by both Houses of Parliament at the end of the 14-day period in the form in which it was passed by the Lok Sabha.

Other Features of Money Bill

• The money bill can only be introduced and passed by a minister.
• The Lok Sabha possesses absolute power.
• There are no arrangements for a Joint Sitting of the Parliament.
• Money Bill is a subset of Financial Bill.

The Aadhar Act, 2016 and Money bill

• In 2016, the government introduced the Aadhar (Targeted Delivery of Financial and Other Subsidies, Benefits, and Services) Bill in the Lok Sabha. This measure was introduced as a money bill, and the Speaker of the House confirmed it as such.
• The bill was passed by the Lok Sabha since the ruling party had a majority in the House of Commons. When the law reached the Rajya Sabha, it was unable to pass owing to a lack of a majority of the governing government in the Rajya Sabha. As a result, the Rajya Sabha sought to change the bill, which was outside of their competitors because it was submitted as a money bill
• As a result, a challenge was filed in the Supreme Court seeking judicial review of the Speaker's certification of the Aadhar Bill as a Money Bill. The Supreme Court dismissed the petitioner's arguments regarding the Aadhar Bill's validity as a Money Bill, ruling that because Section 7 of the Aadhar Act states that subsidies and other schemes for the welfare of the people will be funded from the Consolidated Fund of India, the Aadhar Bill is eligible to be classified as a Money Bill.
• Following the Supreme Court's decision, the bill was reintroduced in Lok Sabha, passed to Rajya Sabha, and Rajya Sabha returned the bill with revisions. The Aadhar Act, 2016 came into being when the Lok Sabha approved the bill, adopting Rajya Sabha's recommendations and gaining the President's permission.

Conclusion

As a result, we may deduce that a money bill is a form of financial law that deals with specific financial issues such as taxation, expenditures and credits, consolidated finances, and so on. The money bill's legislative process is substantially similar to that of other measures. Even yet, some distinguishing traits persist, such as total authority and powers for the Lok Sabha, in order to avoid any impasse between the two chambers and to decrease delays. If a money bill is tabled in Lok Sabha on the President's advice, it is presumed to have been passed by both chambers.

FAQs

MCQs

Question: Which one of the following statements about a Money Bill is not correct? [UPSC 2000]

(a) A Money Bill can be tabled in either House of Parliament.

(b) The Speaker of Lok Sabha is the final authority to decide whether a Bill is a Money Bill or not.

(c) The Rajya Sabha must return a Money Bill passed by the Lok Sabha and send it for consideration within 14 days.

(d) The President cannot return a Money Bill to the Lok Sabha for reconsideration

Question: Regarding the Money Bill, which of the following statements is not correct?

(a) A bill shall be deemed to be a Money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.

(b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.

(c) A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India.

(d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.