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Article 110: Money Bill Defined



  Jun 12, 2024

Money Bill, as specified in Article 110 of the Indian Constitution:



(b) The regulation of borrowing: This refers to laws governing how the Indian government can borrow money,including issuing bonds or taking loans from domestic or international sources. It also covers any guarantees the government might provide for such borrowings.

(c) The custody of funds: This includes laws concerning the management and control of the Consolidated Fund of India (the primary government account) and the Contingency Fund (for urgent, unforeseen expenditures). It covers deposits, withdrawals, and overall safeguarding of these funds.

(d) Appropriation of money: This involves laws that authorize specific amounts of money to be spent from the Consolidated Fund of India for various government programs, projects, and services.

(e) Expenditure charged on the Consolidated Fund: This refers to certain expenditures that are automatically authorized by the Constitution and do not require annual approval by Parliament. This category includes salaries of the President, judges, and other constitutional authorities, as well as interest payments on debt. Laws in this category deal with declaring new expenditures as "charged" or increasing existing ones.
(f) Receipt and custody of money: This includes laws governing the collection of money into the Consolidated Fund or the Public Account of India, as well as the custody, issue, and audit of such funds.
It's important to note that a bill is considered a Money Bill only if it exclusively deals with these matters and no others. If a bill contains provisions on other topics, it is categorized as a Financial Bill instead.

FAQs

Q: What is a Money Bill?

A: A Money Bill is a draft law introduced in the Lok Sabha (Lower House of Parliament) that exclusively deals with financial matters as specified in Article 110 of the Indian Constitution. These matters include taxation, government expenditure, regulation of borrowing, etc.

Q: Which articles of the Indian Constitution deal with Money Bills?

Article 109: Outlines the special procedure for Money Bills, emphasizing the Lok Sabha's dominance and the Rajya Sabha's limited role (14-day window for recommendations).
Article 110: Defines what constitutes a Money Bill, specifying the six exclusive categories of financial matters it can address.
Article 111: Details the President's limited options with Money Bills, which are either to assent (approve) or withhold assent (reject).
Article 117: Specifies that a Money Bill can only be introduced in the Lok Sabha on the recommendation of the President.

Q: Why does the Lok Sabha have primacy over Rajya Sabha in matters of Money Bills?

A: The Lok Sabha, being directly elected by the people, has greater authority over financial matters based on the principle of "No Taxation without Representation."

Q: Can the Rajya Sabha reject a Money Bill?

A: No, the Rajya Sabha can only recommend amendments within 14 days as per Article 109. If it fails to return the bill within this period, it is deemed passed.

Q: What is the role of the Speaker of the Lok Sabha in the Money Bill process?

A: The Speaker certifies whether a bill is a Money Bill and has the final say on this matter as per Article 110(3).

Q: Is the Speaker's decision on Money Bills subject to judicial review?

A: Yes, despite the Speaker's final say, the Supreme Court can review the decision if it involves substantive illegality rather than just procedural irregularity.

Q: What is the difference between a Money Bill and a Financial Bill?

A: A Money Bill deals exclusively with financial matters as defined in Article 110, while a Financial Bill may contain both financial and non-financial provisions.

Q: Can a Constitution Amendment Bill be considered a Money Bill?

A: No, even if a Constitution Amendment Bill deals with financial matters, it is not considered a Money Bill because it amends the Constitution itself, not ordinary law.

Q: What are some recent controversies regarding Money Bills?

A: There have been debates on whether certain bills,like the Finance Act of 2017 and the Aadhaar Act of 2016, were correctly certified as Money Bills, raising concerns about the bypassing of Rajya Sabha scrutiny. These controversies highlight the importance of upholding the constitutional provisions and spirit of Money Bills.




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