Previous Year Question

Article 110 of the Constitution defines a Money Bill. A Bill is treated as a Money Bill only when it contains provisions dealing only with one or more of the matters specified in Article 110(1).

These matters principally include the imposition, abolition, remission, alteration or regulation of a tax; regulation of Government of India borrowing; custody of the Consolidated Fund or Contingency Fund of India; appropriation from the Consolidated Fund; charged expenditure; and receipt, custody or audit of money relating to the Consolidated Fund or Public Account.

Article 110(2) further clarifies that a Bill does not become a Money Bill merely because it imposes fines or other pecuniary penalties, provides for fees for licences or services, or deals with a tax imposed by a local authority for local purposes.

An important fact is that under Article 110(3), if a question arises whether a Bill is a Money Bill, the decision of the Speaker of the Lok Sabha is final. The Speaker's certificate is also endorsed on every Money Bill.

The distinction among the other options is useful—Article 109 deals with the special procedure for Money Bills, Article 111 with Presidential assent to Bills, and Article 112 with the Annual Financial Statement.