Money Bill

About

·       Article 110 of the Indian constitution deals with the definition of money bills.

·       It states that a bill is deemed to be a money bill if it contains only provisions dealing with all or any of the following matters -

Ø  The imposition, abolition, remission, alteration or regulation of any tax

Ø  The regulation of the borrowing of money by the Union government

Ø  The custody of the Consolidated Fund of India or the contingency fund of India, the payment of moneys into or the withdrawal of money from any such fund

Ø  The appropriation of money out of the Consolidated Fund of India

Ø  Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of any such expenditure

Ø  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

Ø  Any matter incidental to any of the matters specified above.

Procedure for a Money Bill

·       If any question arises whether a bill is a money bill or not, the decision of the Speaker of the Lok Sabha is final. His decision in this regard cannot be questioned in any court of law or in the either House of Parliament or even the president.

·       The Constitution lays down a special procedure for the passing of money bills in the Parliament.

·       A money bill can only be introduced in the Lok Sabha with prior permission of the President of India.

·       Every such bill is considered to be a government bill and can be introduced only by a minister.

·       After a money bill is passed by the Lok Sabha, it is transmitted to the Rajya Sabha for its consideration.

·       The Rajya Sabha has restricted powers with regard to a money bill. It cannot reject or amend a money bill. It can only make the recommendations. It must return the bill to the Lok Sabha within 14 days, whether with or without recommendations.

·       The Lok Sabha can either accept or reject all or any of the recommendations of the Rajya Sabha.

·       If the Lok Sabha accepts any recommendation, the bill is then deemed to have been passed by both the Houses in the modified form. If the Lok Sabha does not accept any recommendation, the bill is then deemed to have passed by both the Houses in the form originally passed by the Lok Sabha without any change.

·       If the Rajya Sabha does not return the bill to the Lok Sabha within 14 days, the bill is deemed to have been passed by both the Houses in the form originally passed by the Lok Sabha.

·       The Lok Sabha has more powers than Rajya Sabha with regard to a money bill.

·       Finally, when a money bill is presented to the president, he may either give his assent to the bill or withhold his assent to the bill but cannot return the bill for reconsideration of the Houses.

A bill is not to be deemed to be a money bill when it provides for -

·       Imposition of fines or other pecuniary penalties

·       Demand or payment of fees for licenses or fees for services rendered

·       Imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

 

Differences between a money bill and ordinary bill

Money Bill	Ordinary Bill
It can be introduced only in the Lok Sabha and not in the Rajya Sabha.	It can be introduced either in the Lok Sabha or the Rajya Sabha.
It can be introduced only by a minister.	It can be introduced either by a minister or by a private member.
It can be introduced only on the recommendation of the President.	It is introduced without the recommendation of the president.
It cannot be amended or rejected by the Rajya Sabha.The Rajya Sabha should return the bill with or without recommendations, which may be accepted or rejected by the Lok Sabha.	It can be amended or rejected by the Rajya Sabha.
It can be detained by the Rajya Sabha for a maximum period of 14 days only.	It can be detained by the Rajya Sabha for a maximum period of six months.
It requires the certification of the Speaker when transmitted to the Rajya Sabha.	It does not require the certification of the Speaker when transmitted to the Rajya Sabha (if it has originated in the Lok Sabha).