Q. What is a Money Bill? Explain the procedure of passing Money Bill.


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Answer

 

Introduction:

The Parliament has extensive powers and performs a number of functions. The primary function of a parliament is law making or legislative work. A bill, in simplest form can be defined as a legislative draft, which becomes act after passing from both the houses and approval of the president of India, or governor, as may be applicable.

 

Money Bill:

Article 110 of the Constitution defines the term Money Bill as “a Bill which contains only provision regarding taxes, borrowings, custody of the Consolidated Fund and the Contingency Funds, appropriations, declaring of any expenditure as charged on the Consolidated Fund, receipt and custody of money in the Consolidated Fund, audit of the accounts of the union or any other incidental matter.

Article 110 of the Constitution deals with Definition of Money Bill:

(1)  For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely

(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 the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;

(c)  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;

(d)  the appropriation of moneys out of the consolidated Fund of India;

(e)  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;

(f)   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; or

(g)  any matter incidental to any of the matters specified in sub clause (a) to (f)

Note: A bill will not be referred to as a money bill if it mentions only the imposition of any monetary fines or penalties, or for the demand or payment of fees for licences or any other services given, or if it provides any imposition, abolition, remission, alteration or regulation of any tax imposed by any local authority for local purpose.

 

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Legislative Procedure for Passing a Money Bill:

The introduction and adoption of a money bill has a procedure of its own, that is distinguishable from the adoption of a Non- money bill and also from a Financial Bill in some respects. That is special procedure has been prescribed for the adoption of a Money Bill.

Article 109 lays down the procedure of passing Money Bill

1.    With the prior recommendation of President, A Money Bill shall only be introduced in Lok Sabha, but not in the Rajya Sabha.

2.    After a Money Bill has been passed by the Lok Sabha, it shall be transmitted to the Rajya Sabha for its recommendations. It must be certified by the speaker that the same will be deemed as money bill only.

The Rajya Sabha shall, within a period of 14 days from the receipt of the Bill, return the Bill to the Lok Sabha with its recommendations. The Lok Sabha may, thereupon, either accept or reject all or any of the recommendations of the Rajya Sabha. Under Article 109(5), if Rajya Sabha fails to return the Bill to Lok Sabha within 14 days, it is deemed to have been passed anyway.

 

3.    When a Money Bill has been passed by both the Houses of Parliament, it is presented before the President for his assent.

Note: The money bill can also be introduced in state legislatures by prior approval of Governor of the concern state, and in that case, The state legislative assembly (Vidhan Sabha) takes the position of Lok Sabha and legislative council (Vidhan Parishad), if applicable, takes the position of Rajya Sabha.

 

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