SPECIAL PROVISION IN RESPECT OF “MONEY BILL”- ARTICLE 109 OF THE CONSTITUTION OF INDIA.

What is a “Money Bill”?

Demarcation has been between an ordinary Bill and a Money Bill in the Constitution. Special status has been given to a Money Bill, Money Bill is defined under Article 110 of the Constitution of India.

Article 110 of The Constitution of India.

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:—

1.   the imposition, abolition, remission, alteration or regulation of any tax;

2.   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;

3.   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;

4.   the appropriation of moneys out of the Consolidated Fund of India;

5.   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;

6.   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

7.   any matter incidental to any of the matters specified in sub-clauses (1) to (6).

(2) A Bill shall not be 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 services 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.

(3) If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final.

(4) There shall be endorsed on every Money Bill when it is transmitted to the Council of States under article 109, and when it is presented to the President for assent under article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill.

Whether ‘Money Bill” can be introduced by both the houses of Parliament?

A “Money Bill” cannot be introduced by both the houses of Parliament; only the House of People{Lok Sabha} can introduce the Money Bill, and the House of Council of States {Rajya Sabha} shall not introduce a Money Bill. – Article 109 (1) of the Constitution of India.

Within how many days does the Council of States{Rajya Sabha} return the Money Bill to the House of People{Lok Sabha}?

The Money Bill has to be first passed by the House of people{lok sabha} and after the bill is passed the bill shall be transmitted, sent to the council of states{Rajya Sabha} and the council of states{Rajya Sabha} SHALL within the period of 14 days {from the date of receipt of Bill}, send the Money Bill to the House of people{lok sabha} with the recommendations if any and the House of people{lok sabha} may accept or reject all the recommendation or accept some recommendation and reject the remaining recommendations of the council of states{Rajya Sabha}. . – Article 109 (2) of the Constitution of India.

When the House of People{Lok Sabha} accepts any recommendations of the Council of States.

When the House of the People{ Lok Sabha} accepts any of the recommendations of the Council of States{ Rajya Sabha}, the Money Bill shall be deemed to have been passed by both Houses with the amendments recommended by the Council of States{ Rajya Sabha}  and accepted by the House of People{Lok Sabha}. . – Article 109 (3) of the Constitution of India.

When the House of People{Lok Sabha} does  not accept any recommendations of the Council of States.

If the House of People{Lok Sabha} does not accept any of the recommendations of the Council of States{ Rajya Sabha}, the Money Bill shall be deemed to have been passed by both Houses in the form in which it was passed by the House of People{Lok Sabha} without any of the amendments recommended by the Council of States{ Rajya Sabha}. – Article 109 (4) of the Constitution of India.

House of People{Lok Sabha} is not under any obligation to accept the recommendation of the Council of States{ Rajya Sabha} on the Money Bill. House of People{Lok Sabha} has absolute power to take decisions on the recommendations sent by the Council of States{ Rajya Sabha}.

What happens when the Council of States does not return the Money Bill within the period of 14 days?

If a Money Bill passed by the House of People{Lok Sabha} and transmitted to the Council of States{ Rajya Sabha} for its recommendations is not returned to the House of People{Lok Sabha}within the said period of fourteen days, it shall be deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by the House of People{Lok Sabha}. Therefore if the Council of States{ Rajya Sabha} does not return that is to say does not respond on the Money Bill sent by the House of People{Lok Sabha} and return the bill back within the specified time of 14 days then such a bill is to be deemed to be passed by both the houses- – Article 109 (5) of the Constitution of India.

POWER OF THE COUNCIL OF STATES{ RAJYA SABHA} OVER THE MONEY BILL

The Council of States{ Rajya Sabha} have very limited power on the Money Bill, the Council of States{ Rajya Sabha} can only send recommendations to the House of People{Lok Sabha} and the House of People{Lok Sabha} have complete discretion to decide upon the recommendations sent to them by Council of States{ Rajya Sabha}, in the case the Council of States{ Rajya Sabha} does not return the Money Bill to House of People{Lok Sabha} the bill will be passed by both the house, therefore the Council of States{ Rajya Sabha} don’t have the power to delay or dismiss the money bill.

Article only for the purpose of education.

References:

India code.