Passing Of Money Bills By Indian Parliament
The procedure of passing of Money Bills is different from procedure of passing of ordinary bills.
As per Article 109, Money Bills cannot be introduced in Rajya Sabha. A Money Bill can only be introduced in Lok Sabha. After the Lok Sabha passes the Money Bill the same is transmitted to Rajya Sabha. The Rajya Sabha has to return the Money Bill with its recommendations to Lok Sabha within 14 days of receipt of the Money Bill. The Lok Sabha may either accept or reject the recommendation made by Rajya Sabha. In both cases money bill is deemed to be passed by Parliament.
If Money Bill passed by Lok Sabha and transmitted to Rajya Sabha is not returned to the Lok Sabha within 14 days, the Money Bill is deemed to have been passed by both houses after expiration of 14 days in the form it was passed by the Lok Sabha.
What is Money Bill ?
As per Article 110 , a Bill is considered Money Bill if it contains following provisions only:
- the imposition, abolition, remission, alteration, or regulation of any tax
- the regulation of the borrowing of money or the giving of any guarantee by the Government of India or amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Govt. of India
- the custody of the Consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund
- the appropriation of moneys out of the Consolidated Fund of India
- the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure
- the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State
- any matter incidental to any of the matters specified in sub clauses (a) to (f)
A bill is not deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties or for the demand or payment of fees for licences or fees for service rendered or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.
If any question arises whether a bill is a money bill or not, the decision of speaker is final.
When a money bill is transmitted to Rajya Sabha or submitted to the President for his assent, such money bill has to be endorsed by the speaker of the Lok Sabha that it is a money bill.
As per Article 117, Money Bills can only be introduced after recommendation of the President. No such recommendation is required for reduction or abolition of a tax.
Whether Speaker’s decision is final on Money Bill ?
Article 110 (3) provides that whether a bill is money bill or not , the decision of the Speaker will be final. Aadhaar Bill has been passed as Money Bill although in the bill there were various provisions other than subjects covered under Article 110. Passing of Aadhaar Bill as Money Bill has been held valid by the Supreme Court in Justice K S Puttaswamy Vs Union of India (Writ Petition (Civil) 494/2012). In Roger Matthews Vs. South Indian Bank (Civil Appeal No. 8588 of 2019) the correctness of the view taken in Puttaswamy has been questioned. The issue that whether decision of the Speaker is final or can be judicially reviewed has been referred to a larger bench.
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Mukesh Kumar Suman is an advocate and legal author based at Delhi. He regularly appears before various Judicial Forums including NCLT, NCLAT, High Courts and the Supreme Court. He can be approached at mukesh_suman@outlook.com or +91 9717864570.