What is a money bill? Discuss the mode of the passing of money bill.

Question: What is a money bill? Discuss the mode of the passing of money bills. [UPJS 2018]

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Answer

Article 110 in the Constitution of India 1949 provides for the definition of the Money Bill. Clause 1 of Article 110 says that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely:

1. the 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. the custody of the Consolidated Fund or the Contingency Fund of India, the payment of money into or the withdrawal of money from any such Fund;
4. the appropriation of money out of the consolidated Fund of India;
5. the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any 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 any of the matters specified in sub-clause (a) to (f)

Clause 2 of Article 110 further provides that a bill shall not be deemed to be a money bill if it is:

• 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

Further, Clause 3 of the provision says that in case of dispute to judge whether a bill is a money bill or note, the decision of the Speaker of the House of the People thereon shall be final.

There are essentially four modes for passing a money bill. They are:

1. Money Bill can be introduced only in the Lok Sabha on the recommendation of the President. After it is passed by the Lok Sabha it is sent to Rajya Sabha. But before passing it to Rajya Sabha, Speaker must certify it as a Money Bill and if any question arises whether a bill is a money bill or not, the decision of the speaker is final.
2. Rajya Sabha has restricted powers in the case of the Money Bill. It cannot reject or amend but can only give recommendations to the Lok Sabha. It must return the Bill within 14 days. Even if it does not return the bill in 14 days, it is deemed to have been passed by the Rajya Sabha.
3. After the Rajya Sabha returns the Bill with or without amendments, Lok Sabha can either accept or reject all or any of the recommendations. And the Bill is deemed to have been passed by both the houses in either case.
4. Then finally, the bill is sent to the President for its assent. President may either give his assent to the Bill or withhold his assent but cannot return the bill for reconsideration of the Houses.

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