Previous Year Question
Regarding Money Bill, which of the following statements is not correct?
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.
A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India.
A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.
Correct Answer: C
Detailed Solution
Statement (c) is not correct. Under Article 110(1)(d), a Money Bill may contain provisions concerning the appropriation of money out of the Consolidated Fund of India, not the appropriation of money out of the Contingency Fund of India.
The Contingency Fund of India is constituted under Article 267. It is placed at the disposal of the President to provide advances for unforeseen and urgent expenditure pending authorisation by Parliament. After Parliament authorises the expenditure, the amount is recouped to the Contingency Fund.
The remaining statements are correct:
Statement (a): Article 110(1)(a) includes the imposition, abolition, remission, alteration or regulation of any tax.
Statement (b): Article 110(1)(c) includes the custody of the Consolidated Fund or the Contingency Fund of India and the payment of money into or withdrawal of money from either Fund.
Statement (d): Article 110(1)(b) includes regulation of government borrowing, giving of guarantees and amendment of laws relating to the financial obligations of the Government of India.
A Bill is a Money Bill only when it contains exclusively provisions dealing with matters specified in clauses (a) to (f) of Article 110(1), or matters incidental to them.
A Bill does not become a Money Bill merely because it imposes fines, licence fees, fees for services, or a tax by a local authority for local purposes.
Other important features of a Money Bill are:
It can be introduced only in the Lok Sabha and on the President’s recommendation.
The Speaker of the Lok Sabha has the final authority to certify whether a Bill is a Money Bill.
The Rajya Sabha cannot reject or amend it; it can only make recommendations within 14 days.
The Lok Sabha may accept or reject any or all of those recommendations.
There is no provision for a joint sitting over a Money Bill.