Previous Year Question

A Money Bill can be introduced only in the Lok Sabha. Under Article 109(1) of the Constitution, a Money Bill cannot be introduced in the Rajya Sabha. Its introduction also requires the prior recommendation of the President.

A Money Bill is defined under Article 110. A Bill is treated as a Money Bill when it contains only provisions relating to specified financial matters such as the imposition, abolition or regulation of taxes; borrowing by the Government of India; and the custody or appropriation of money from the Consolidated Fund or Contingency Fund of India.

After being passed by the Lok Sabha, the Money Bill is transmitted to the Rajya Sabha only for its recommendations. The Rajya Sabha must return it to the Lok Sabha within 14 days of receiving it. It cannot itself amend the Bill; it can only make recommendations, which the Lok Sabha may accept or reject.

If the Rajya Sabha does not return the Money Bill within 14 days, it is deemed to have been passed by both Houses in the form in which it was originally passed by the Lok Sabha. This gives the Lok Sabha a stronger position than the Rajya Sabha in relation to Money Bills.

If any dispute arises regarding whether a Bill is a Money Bill, the decision of the Speaker of the Lok Sabha is final. Further, there is no provision for a joint sitting of the two Houses in the case of a Money Bill.