Consider the following statements about Money Bills:

Question

Consider the following statements about Money Bills:

1. The introduction of Money Bills cannot occur in the Rajya Sabha

2. The Rajya Sabha does not have the power to amend or reject it

3. The procedure for Money Bills includes the provision for a joint sitting of Parliament.

How many of the statement/s given above is/are correct?

1. A. Two (Correct answer)
2. B. One
3. C. All three
4. D. None of the above

Correct Answer

Option A — Two

Detailed Solution & Explanation

The correct answer is Two.

Key Points

• Statement 1 is correct. A Money Bill cannot be introduced in the Rajya Sabha. It may be introduced only in the Lok Sabha, and only on the recommendation of the President.
• Statement 2 is correct. The Rajya Sabha can neither amend nor reject a Money Bill. It may only make recommendations, and must return the bill within 14 days. The Lok Sabha is free to accept or reject those recommendations; if the Rajya Sabha does not return it in time, the bill is deemed passed by both Houses.
• Statement 3 is incorrect. There is no provision for a joint sitting in the case of a Money Bill. A joint sitting under Article 108 exists to resolve deadlock over an ordinary bill, and deadlock over a Money Bill is impossible by design, since the Rajya Sabha has no power to block it.
• Two of the three statements are correct.

Additional Information

• Article 110 defines a Money Bill. A bill is a Money Bill only if it deals exclusively with all or any of these: the imposition, abolition, remission, alteration or regulation of any tax; the regulation of borrowing by the Government of India; the custody of the Consolidated Fund or Contingency Fund; the appropriation of moneys out of the Consolidated Fund; declaring any expenditure to be charged on the Consolidated Fund; the receipt of money on account of the Consolidated Fund or the public account; or any matter incidental to these.
• The Speaker's certificate is final. If a question arises whether a bill is a Money Bill, the decision of the Speaker of the Lok Sabha is conclusive and is endorsed on the bill when it is transmitted to the Rajya Sabha or presented to the President.
• The President can either assent to or withhold assent from a Money Bill, but cannot return it for reconsideration — since it was introduced with the President's own recommendation.
• Distinguish Money Bills from Financial Bills. All Money Bills are Financial Bills, but not all Financial Bills are Money Bills. Financial Bills of Category I (Article 117(1)) contain Money Bill matters plus other matters — introduced only in the Lok Sabha on the President's recommendation, but otherwise treated as ordinary bills, so the Rajya Sabha can amend or reject them and a joint sitting is possible. Category II (Article 117(3)) involves expenditure from the Consolidated Fund and can begin in either House.
• Article 108 joint sittings have been convened only three times: for the Dowry Prohibition Bill (1961), the Banking Service Commission (Repeal) Bill (1978), and the Prevention of Terrorism Bill (2002).