MONEY BILL (Syllabus: GS Paper 2 – Polity)

Context: Recently, a seven-judge Bench, led by Chief Justice of India D.Y. Chandrachud, considered a request to prioritise a reference on how the Centre passed crucial amendments in Parliament as Money Bills.

Money Bill

• Article 110(1) of the Constitution: Money Bills, which must contain specific provisions, primarily related to taxation, government finances, borrowing, and guarantees.
• The procedure for passing Money Bills, as outlined in Article 109, involves them being introduced only in the House of the People (Lok Sabha).
• After passing the House of the People, a Money Bill is sent to the Council of States (Rajya Sabha) for recommendations within 14 days. Options LS have on RS recommendations:

oIf the House of the People accepts the Council's recommendations, the Money Bill is considered passed with those amendments.

oIf the House of the People rejects the Council's recommendations, the Money Bill is passed as originally proposed by the House of the People.

oIf the Council of States doesn't return the Money Bill within 14 days, it's deemed passed in the form it was passed by the House of the People.

• Role of Speaker: He takes the final call if a bill is a money bill or not. And his decision cannot be challenged in any court of the country.

Criteria of Money Bill

• Tax imposition, abolition, remission, alteration, or regulation.
• Government of India's borrowing of money or giving guarantees.
• Management of the Consolidated Fund or Contingency Fund of India, as well as deposits and withdrawals.
• Allocation of funds from the Consolidated Fund of India.
• Identification of expenses as charges on the Consolidated Fund of India or increases in such expenses.