Previous Year Question
With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:
When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill.
How many of the above statements is/are correct?
Only one
Only two
All three
None
Correct Answer: B
Detailed Solution
Statement 1 is correct. A Financial Bill that is not a Money Bill is subject to the ordinary legislative procedure. The Rajya Sabha may, therefore, amend or reject it.
The Constitution broadly provides for two categories of Financial Bills:
Financial Bill under Article 117(1): It contains one or more matters specified in Article 110 along with other matters. It can be introduced only in the Lok Sabha on the President’s recommendation, but the Rajya Sabha may amend or reject it.
Financial Bill under Article 117(3): It involves expenditure from the Consolidated Fund of India but does not contain any matter specified in Article 110. It may be introduced in either House, although it cannot be passed without the President’s recommendation.
Statement 2 is correct. Under Article 109, the Rajya Sabha cannot amend or reject a Money Bill. It can only make recommendations.
The Rajya Sabha must return the Money Bill within 14 days.
The Lok Sabha may accept all, some or none of its recommendations.
If the Rajya Sabha does not return it within 14 days, the Bill is deemed passed by both Houses in the form approved by the Lok Sabha.
Statement 3 is incorrect. Its first part—that a joint sitting cannot be held for a Money Bill—is correct. However, disagreement over a Financial Bill does not automatically make a joint sitting necessary.
Under Article 108, when the specified conditions of a deadlock arise, the President may notify the intention to summon a joint sitting. A joint sitting is an available constitutional mechanism, not an automatic or compulsory consequence of every disagreement.
The principal distinctions are:
A Money Bill is defined under Article 110.
The Speaker of the Lok Sabha has the final constitutional authority to determine whether a Bill is a Money Bill.
A Money Bill can originate only in the Lok Sabha; the place of introduction of a Financial Bill depends on its category.
The Rajya Sabha can only recommend changes to a Money Bill but ordinarily has full legislative powers over a Financial Bill.
No joint sitting is possible for a Money Bill, whereas it may be possible under Article 108 for a Financial Bill that is not a Money Bill.