Previous Year Question
What will follow if a Money Bill is substantially amended by the Rajya Sabha?
The Lok Sabha may still proceed with the Bill, accepting or not accepting the recommendations of the Rajya Sabha.
The Lok Sabha cannot consider the Bill further.
The Lok Sabha may send the Bill to the Rajya Sabha for reconsideration.
The President may call a joint sitting for passing the Bill.
Correct Answer: A
Detailed Solution
The Rajya Sabha has no power formally to amend or reject a Money Bill. It can only make recommendations, which the Lok Sabha is not bound to accept.
Parliamentary procedure for a Money Bill
The special procedure for a Money Bill is prescribed 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 must return it with its recommendations within 14 days from the date of receipt.
The Lok Sabha may accept all, some or none of the Rajya Sabha’s recommendations.
If the Lok Sabha accepts a recommendation, the Bill is deemed to have been passed by both Houses with the accepted change.
If the Lok Sabha rejects the recommendations, the Bill is deemed to have been passed by both Houses in the form originally passed by the Lok Sabha.
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 passed by the Lok Sabha when the 14-day period expires.
Thus, what the question describes as an ‘amendment’ by the Rajya Sabha is constitutionally only a recommendation.
Related constitutional facts
Article 110: Defines a Money Bill. It includes matters such as taxation, government borrowing, the Consolidated Fund, the Public Account and appropriation.
Article 110(3): If a dispute arises over whether a Bill is a Money Bill, the decision of the Speaker of the Lok Sabha is final.
Article 110(4): The Speaker’s certificate is endorsed on a Money Bill when it is transmitted to the Rajya Sabha and presented to the President.
Article 117(1): A Money Bill cannot be introduced without the President’s recommendation.
Article 108: A joint sitting cannot be convened for a Money Bill.
Article 111: The President cannot return a Money Bill to Parliament for reconsideration. The power to return a Bill applies only to a Bill that is not a Money Bill.
Therefore, the Lok Sabha may proceed with the Bill while accepting or rejecting the Rajya Sabha’s recommendations.