Previous Year Question
Which of the following statements are correct in respect of a Money Bill in the Parliament?
Article 109 mentions special procedure in respect of Money Bills.
A Money Bill shall not be introduced in the Council of States.
The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it.
Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha.
Select the answer using the codes given below:
1 and 2
2 and 3
1, 2 and 3
1, 3 and 4
Correct Answer: C
Detailed Solution
Statement 1 is correct. Article 109 prescribes the special parliamentary procedure for Money Bills. The Lok Sabha has a constitutionally stronger position than the Rajya Sabha in respect of such Bills.
Statement 2 is correct. Article 109(1) provides that a Money Bill cannot be introduced in the Rajya Sabha. It may be introduced only in the Lok Sabha and requires the President’s prior recommendation.
Statement 3 is correct. After its passage by the Lok Sabha, a Money Bill is transmitted to the Rajya Sabha for its recommendations. The Rajya Sabha may:
Return the Bill without any recommendation.
Recommend changes to the Bill.
Not make binding amendments to it.
Not defeat it in the same manner as an ordinary Bill.
The Rajya Sabha must return the Money Bill within 14 days. If it fails to do so, the Bill is deemed to have been passed by both Houses in the form in which the Lok Sabha passed it.
Statement 4 is incorrect. The Lok Sabha is not bound to accept the Rajya Sabha’s recommendations. It may accept all, some or none of them.
If the Lok Sabha accepts any recommendation, the Bill is deemed to have been passed by both Houses with the accepted change. If it rejects all recommendations, it is deemed passed in the original form approved by the Lok Sabha.
Other important facts concerning a Money Bill are:
Article 110 defines the matters that may constitute a Money Bill.
The Speaker of the Lok Sabha has the final constitutional authority to decide whether a Bill is a Money Bill.
The Speaker’s certificate is endorsed on the Bill when it is transmitted to the Rajya Sabha and presented to the President.
A joint sitting of Parliament cannot be convened for a Money Bill.
The President cannot return a Money Bill to Parliament for reconsideration.
A Bill does not become a Money Bill merely because it imposes fines, demands licence or service fees, or provides for the imposition of a local tax by a local authority for local purposes.