MONEY
BILL - POLITY
News: What are Money Bills and why are they the
subject of a constitutional challenge?
What's
in the news?
●
Although the Supreme Court struck down the
electoral bond scheme as unconstitutional earlier this month, it did not
clarify one aspect of the challenge - the use of the money Bill route by the
government to pass key legislation.
Money
Bill:
●
A money bill is defined in Article 110 of the Constitution as
"a proposed law containing primarily provisions dealing with all or any of
the topics specified therein."
Features
of Money Bill:
●
The
imposition, abolition, remission, alteration or regulation of any tax.
●
The regulation of the borrowing of money
by the Union government.
●
The custody of the Consolidated Fund of
India or the contingency fund of India, the payment of money into or the
withdrawal of money from any such fund.
●
The appropriation of money out of the
Consolidated Fund of India.
●
Declaration of any expenditure charged on
the Consolidated Fund of India or
increasing the amount of any such expenditure.
●
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.
●
Any matter incidental to any of the
matters specified above.
Exceptions:
Bill is not 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.
Passage
of Money Bill:
●
Unlike Ordinary Bills, Money Bills are
introduced only in Lok Sabha on the
President's recommendation, which is mandatory.
●
The bill, introduced in the Lok Sabha on
the President's recommendation, is referred to as a government bill.
●
It should be noted that all government
bills are introduced only by the
minister.
●
After the bill is passed by the Lok Sabha,
it is sent to the Rajya Sabha, which has only limited authority. It has no
authority to reject or amend the bill.
●
There is no possibility of disagreement,
hence there is no provision for a joint
sitting regarding money bills.
●
The Lok
Sabha speaker certifies the bill as a money bill and his decision is final
in this regard.
●
The President's consent is required when
the bill has passed both houses. He can either give assent or withhold assent
but cannot send a bill for reconsideration.
●
Following the President's approval, the
bill becomes an act and is published in the Indian Statute Book.
Note:
●
Rajya
Sabha is required to return the bill within 14 days, with or without amendment
recommendations.
●
If it does not return the bill within the
specified time frame, it is presumed to have been passed.
●
The amendments may or may not be accepted
by the Lok Sabha.