Question 58 from UPSC CSE 2018 - Polity

Question

Regarding Money Bill, which of the following statements is not correct?

Accepted Answer

Correct Option: C. A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.

Strategy: - Focus on the main features of a Money Bill as defined in Article 110 of the Indian Constitution.
- Identify that appropriation of money must be solely from the Consolidated Fund of India, not the Contingency Fund.
- Use keywords such as 'imposition of tax', 'custody of funds', and 'regulation of borrowing' to confirm alignment with Article 110's enumerated features.

Key Info: A Money Bill is defined in Article 110 of the Indian Constitution. Its provisions exclusively relate to matters such as:

*   Imposition, abolition, remission, alteration, or regulation of any tax.
*   Regulation of government borrowing or government guarantees.
*   Custody, withdrawal from, or payment into the Consolidated Fund of India or Contingency Fund of India.
*   Appropriation of money from the Consolidated Fund of India alone.
*   Declaration or increase of expenditure charged on the Consolidated Fund of India.
*   Receipt, custody, or issue of money from the Consolidated Fund or Public Account, and audit of these accounts.
*   Any incidental matters.

Appropriation of moneys is only authorized from the Consolidated Fund, not the Contingency Fund. The Contingency Fund is used for unforeseen expenditures and can be replenished later by Parliamentary approval.

Only the Lok Sabha can introduce a Money Bill, and its Speaker certifies it. The Rajya Sabha can only make recommendations, which the Lok Sabha may accept or reject. Money Bills cannot be introduced in or amended by the Rajya Sabha.

Answer

Option A: A bill shall be deemed to be a Money Bill if it contains only provisions relating to imposition, abolition, remission, alteration, or regulation of any tax.

Answer

Option B: A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.

Answer

Option D: A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.