A Money Bill is a type of bill that deals exclusively with financial matters, such as taxation, borrowing, and government expenditure. Article 110 of the Indian Constitution defines a Money Bill and states that only the Lok Sabha can introduce it.
1. What is a Money Bill?
A Money Bill is a special type of bill that deals only with financial matters like taxation, public expenditure, and government borrowing.
✅ Defined under: Article 110 of the Indian Constitution.
✅ Introduced only in: Lok Sabha.
✅ Approval needed from: Rajya Sabha, but it cannot reject or amend it without Lok Sabha’s consent.
✅ Final Approval: Sent to the President, who cannot return a Money Bill for reconsideration.
2. Provisions of a Money Bill (Article 110)
A bill is considered a Money Bill if it contains ONLY the following provisions:
1️⃣ Taxation – Imposition, abolition, remission, or alteration of any tax.
2️⃣ Borrowing – Regulation of government borrowing and public debt.
3️⃣ Consolidated & Contingency Funds – Withdrawal or expenditure from these funds.
4️⃣ Payment of Salaries & Allowances – Of the President, Judges, and other officials.
5️⃣ Any matter related to Money Bills – Any ancillary financial matters.
🔹 However, a bill is NOT a Money Bill if it deals with:
- Imposing fines or penalties.
- Payment for licenses or services.
- Regulating local taxes.
📌 Example:
- Finance Bills are presented every year with the Budget and include tax proposals.
3. Procedure for Passing a Money Bill
| Step | Procedure |
|---|---|
| Step 1: Introduction | Introduced ONLY in Lok Sabha on the recommendation of the President. |
| Step 2: Debate & Voting in Lok Sabha | Lok Sabha debates, votes, and passes the bill by a simple majority. |
| Step 3: Sent to Rajya Sabha | Rajya Sabha cannot reject or amend the bill but can recommend changes within 14 days. |
| Step 4: Final Approval by Lok Sabha | Lok Sabha accepts or rejects Rajya Sabha’s recommendations and passes the bill. |
| Step 5: Sent to the President | The President must give assent and cannot return a Money Bill. |
📌 Example:
- The Annual Budget is introduced as a Money Bill.
4. Role of Rajya Sabha in Money Bills
✅ Rajya Sabha cannot reject a Money Bill.
✅ Rajya Sabha can suggest amendments, but Lok Sabha is not bound to accept them.
✅ If Rajya Sabha does not act within 14 days, the bill is considered passed.
📌 Example: In 2017, the government passed the Aadhaar Act as a Money Bill, bypassing Rajya Sabha’s opposition.
5. Important Articles Related to Money Bills
| Article | Provision |
|---|---|
| Article 110 | Definition of Money Bill |
| Article 111 | President’s Assent to Bills |
| Article 112 | Annual Financial Statement (Budget) |
| Article 113 | Expenditure from the Consolidated Fund of India |
| Article 114 | Appropriation Bills |
| Article 117 | Special Provisions for Financial Bills |
6. Difference Between Money Bill & Financial Bill
| Feature | Money Bill (Article 110) | Financial Bill (Article 117) |
|---|---|---|
| Definition | Deals only with financial matters listed in Article 110. | Includes financial matters but also contains other provisions. |
| Introduction | Only in Lok Sabha | Can be introduced in either House |
| Rajya Sabha’s Role | Cannot reject or amend it. Can only suggest changes. | Can reject or amend the bill. |
| President’s Role | Must give assent (cannot return for reconsideration). | Can return for reconsideration. |
📌 Example:
- The Aadhaar Act (2016) was passed as a Money Bill.
- The GST Bill (2017) was a Financial Bill.
7. Controversies Related to Money Bills
1️⃣ Aadhaar Act (2016) – Passed as a Money Bill to bypass Rajya Sabha, leading to a Supreme Court case.
2️⃣ Finance Act (2017) – Government used a Money Bill to introduce changes in tribunals and appointments, raising constitutional concerns.
3️⃣ Judicial Review Issue – The Supreme Court has ruled that it can review whether a bill is a Money Bill.
📌 Example:
- K.S. Puttaswamy Case (2018) – Supreme Court questioned the passage of the Aadhaar Act as a Money Bill.
8. MCQs on Money Bills
1. Under which article is a Money Bill defined?
a) Article 107
b) Article 110
c) Article 112
d) Article 117
✅ Answer: b) Article 110
2. Where can a Money Bill be introduced?
a) Lok Sabha only
b) Rajya Sabha only
c) Either House
d) Supreme Court
✅ Answer: a) Lok Sabha only
3. What happens if Rajya Sabha does not return a Money Bill within 14 days?
a) The bill is rejected
b) The bill is considered passed
c) The bill is sent to the Supreme Court
d) The President can veto it
✅ Answer: b) The bill is considered passed
4. Which of the following is NOT a Money Bill?
a) Income Tax Bill
b) Appropriation Bill
c) Banking Regulation Bill
d) Finance Bill
✅ Answer: c) Banking Regulation Bill (It includes regulatory provisions, so it is a Financial Bill, not a Money Bill).
5. Can the President return a Money Bill for reconsideration?
a) Yes
b) No
c) Only if recommended by Rajya Sabha
d) Only if challenged in Supreme Court
✅ Answer: b) No
6. Who decides whether a bill is a Money Bill?
a) Prime Minister
b) President
c) Speaker of Lok Sabha
d) Chief Justice of India
✅ Answer: c) Speaker of Lok Sabha
7. Which article deals with the Annual Budget?
a) Article 110
b) Article 111
c) Article 112
d) Article 117
✅ Answer: c) Article 112
8. What is the maximum time Rajya Sabha can delay a Money Bill?
a) 7 days
b) 10 days
c) 14 days
d) 30 days
✅ Answer: c) 14 days
9. Conclusion
A Money Bill (Article 110) is a special category of bill dealing exclusively with financial matters. It is introduced only in Lok Sabha, with limited powers for Rajya Sabha. While it ensures a smooth passage of financial policies, it has been misused in recent years, leading to constitutional debates.
For competitive exams, understanding Money Bills, Financial Bills, and related articles is essential. Stay updated with recent legislative developments to strengthen your preparation! ✅📚
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