Are you familiar with the term “Money Bill” within the Indian Constitution? A Money Bill, as defined in Article 110 of the Constitution, addresses matters related to taxation, government borrowing, fund custody, and more. It is a crucial legislative instrument, but its passage follows a unique procedure. Money Bills can only originate in the Lok Sabha, and when passed, are sent to the Rajya Sabha for recommendations. If Rajya Sabha doesn’t return the bill within 14 days, it is considered passed. Discover how the Constitution handles Money Bills and why the Rajya Sabha has limited control over them in this concise overview.
Definition of Money Bill Under Constitutional Provisions
Article 110 of the Constitution defines the term “Money Bill.” According to this article, a bill is deemed to be a Money Bill if it contains provisions related to any of the following matters:
(a) The imposition, abolition, remission, alteration, or regulation of any tax. (b) The regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of laws related to financial obligations of the Government of India. (c) The custody of the Consolidated Fund or the Contingency Fund of India, the payment of money into or withdrawal of money from any fund. (d) The appropriation of money from the Consolidated Fund of India. (e) The declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increase in the amount of such expenditure. (f) The receipt of money on account of the Consolidated Fund of India or the public account of India, the custody or issuance of such money, or the audit of accounts of the Union or a State. (g) Any matter incidental to the above-mentioned matters.
Article 110(2) specifies that a bill is not considered a Money Bill solely because it deals with fines, pecuniary penalties, fees for licenses or services, or the regulation of taxes by local authorities for local purposes.
Under Article 110(3), if there is a question about whether a bill is a Money Bill, the decision of the Speaker of the House of the People is final.
How Money Bill Is Passed in Indian Parliament?
The Constitution establishes a special procedure for passing Money Bills. A Money Bill must originate in the House of the People (Lok Sabha) on the President’s recommendation. After passing in the Lok Sabha, the Money Bill is sent to the Rajya Sabha for recommendations. The Rajya Sabha has 14 days to provide its recommendations. The Lok Sabha can accept or reject these recommendations. If accepted, the Bill is considered passed in its amended form. If not accepted, it remains in its original form.
If the Rajya Sabha does not return a Money Bill to the Lok Sabha within 14 days, the Bill is considered passed by both Houses in its original form. This process illustrates that the Rajya Sabha has no control over Money Bills.
A Money Bill, when transmitted to the Rajya Sabha or presented for the President’s assent, must bear the endorsement of the Speaker of the Lok Sabha confirming it as a Money Bill. The President lacks the authority to return a Money Bill for reconsideration.
Also, read:
Finance Commission under the provisions of the Indian constitution.
Matters Pertaining to the Misuse of Money Bill
Avoiding Scrutiny: Money bills should not be employed as a means to circumvent the regular legislative process or evade the careful examination by the Rajya Sabha.
Aadhaar Bill Controversy: During the enactment of the Aadhaar Act in 2016, the Opposition raised concerns, arguing that facilitating fair and equitable distribution of benefits and subsidies doesn’t fall within the purview of Article 110 as a money matter. Consequently, they questioned the legitimacy of categorizing the Aadhaar Bill as a money bill.
Role of Certifying Authority: Criticisms have arisen regarding the potential for bias in the role of the Speaker, who possesses sole discretion in certifying a bill as a money bill.
Checks and Balances: Take, for example, the Finance Act of 2017, passed as a money bill. It introduced amendments to various laws, including regulations and appointments for several tribunals, such as the National Green Tribunal.
Supreme Court Ruling: The Supreme Court has established that a money bill should exclusively encompass provisions directly linked to the subjects outlined in Article 110 of the Indian Constitution, which delineates the areas that can be covered by a money bill.