Question 91 from UPSC CSE 2023 - Polity & Governanc e

Question

With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:
1. When the Lok Sabha transmits a Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
2. When the Lok Sabha transmits a Money Bill to the Rajya Sabha, it cannot amend or reject the Bill; it can only make recommendations.
3. In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for a Money Bill, but a joint sitting becomes necessary for a Finance Bill.
How many of the above statements are correct?

IASCODEX · Accepted Answer

Correct Option: A. Only one

Strategy: -   Identify the correct procedural differences between Finance Bills and Money Bills, specifically concerning the Rajya Sabha's powers.
-   Recognize that the Rajya Sabha can only recommend amendments to a Money Bill, not amend or reject it.
-   Understand that a Finance Bill, if it possesses the characteristics of a Money Bill, similarly restricts the Rajya Sabha's powers. Only ordinary Finance Bills (those containing non-Money Bill provisions) permit the Rajya Sabha to amend or reject them.
-   Note that joint sittings are not provisioned for Money Bills and are generally not invoked for financial legislation, even for ordinary Finance Bills.

Key Info: ## Money Bill Key Features
-   Defined in Article 110 of the Indian Constitution.
-   Deals exclusively with matters like taxation, borrowing, and expenditure from the Consolidated Fund.
-   The Speaker certifies a Bill as a Money Bill.
-   Can only be introduced in the Lok Sabha upon the President's recommendation.
-   **Rajya Sabha's Role**: Cannot amend or reject; may only make recommendations, which the Lok Sabha may accept or ignore.
-   Must be returned by Rajya Sabha within 14 days.
-   No joint sitting is permitted under Article 108.

## Finance Bill Key Features
-   Includes proposals for the government's tax and expenditure.
-   Not all Finance Bills are Money Bills.
-   **Types of Finance Bills**:
    -   **Money Bill (Article 110)**: Strictly falls under Article 110.
    -   **Finance Bill (I) (Article 117(1))**: Contains Money Bill provisions plus others. Rajya Sabha can propose amendments and, in theory, may be subject to a joint sitting if deadlock occurs.
    -   **Finance Bill (II) (Article 117(3))**: Contains only provisions not relating to tax (e.g., payments out of the Consolidated Fund).
-   **Joint Sittings**: While theoretically possible for Finance Bill (I) and ordinary Bills, constitutional convention and financial propriety generally mean joint sittings are avoided for Money and Finance Bills.

## Practical Considerations
-   In practice, most Finance Bills are certified as Money Bills and follow their specific procedures.
-   Both types are always introduced in the Lok Sabha and on Presidential recommendation.
-   Only non-Money Bill Finance Bills can go through normal amendment and joint sitting mechanisms.

IASCODEX · Answer

Option B: Only two

IASCODEX · Answer

Option C: All three

IASCODEX · Answer

Option D: None