Previous Year Question
Consider the following statements.
The Rajya Sabha has no power either to reject or to amend a Money Bill.
The Rajya Sabha cannot vote on the Demands for Grants.
The Rajya Sabha cannot discuss the Annual Financial Statement.
Which of the statement(s) given above is/are correct?
Only 1
1 and 2
2 and 3
1, 2 and 3
Correct Answer: B
Detailed Solution
Statement 1 is correct. Under Article 109, a Money Bill can be introduced only in the Lok Sabha. After being passed by the Lok Sabha, it is transmitted to the Rajya Sabha for its recommendations.
The Rajya Sabha:
cannot reject a Money Bill;
cannot amend it on its own;
can only recommend amendments; and
must return it to the Lok Sabha within 14 days.
The Lok Sabha may accept or reject any or all of the Rajya Sabha’s recommendations. If the Rajya Sabha does not return the Bill within 14 days, it is deemed to have been passed by both Houses in the form originally passed by the Lok Sabha.
Statement 2 is correct. Under Article 113(2), Demands for Grants are submitted only to the Lok Sabha. The Lok Sabha may assent, refuse to assent or assent subject to a reduction in the amount. The Rajya Sabha may discuss these demands but cannot vote on them or move cut motions.
Expenditure charged upon the Consolidated Fund of India is not submitted to the vote of either House, although it may be discussed in both Houses.
Statement 3 is incorrect. Article 112 requires the President to cause the Annual Financial Statement to be laid before both Houses of Parliament. Therefore, the Rajya Sabha can participate in the general discussion on the Union Budget and the Annual Financial Statement. Its limitation relates to voting on Demands for Grants, not to discussing the Budget.
Thus, the Rajya Sabha’s financial position is:
It can only recommend changes to a Money Bill.
It cannot vote on Demands for Grants.
It can discuss the Annual Financial Statement.
In the case of a Financial Bill not confined exclusively to Article 110 matters, the Rajya Sabha generally possesses powers similar to those exercised over an ordinary Bill.