MONEY BILL
WHY IN NEWS ?
- Recently Chief Justice of India DY Chandrachud said that a seven judge bench will soon be set up to hear a batch of pleas challenging the Centre’s use of the money bill route to pass certain key legislations.
MORE ABOUT THE NEWS :
- The decision is aimed at addressing the controversy around Money Bills after the government introduced legislation like the Aadhaar Bill and even amendments to the Prevention of Money Laundering Act as Money Bills, apparently to circumvent the Rajya Sabha where it did not have majority.
- However, the court in the Aadhaar case had said that the Speaker’s decision will be subject to judicial scrutiny.
WHAT IS A MONEY BILL ?
- Under Article 110(1), a Bill is deemed to be a money Bill if it deals only with matters specified in Article 110 (1) (a) to (g).
- It deals with taxation, borrowing by the government and appropriation of money from the Consolidated Fund of India among others.
- A money Bill can only be introduced in Lok Sabha and does not need the consent of Rajya Sabha.
- According to Article 110 (3) of the Constitution, “if any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final.”
ABOUT FINANCE BILL:
- In a general sense, any Bill that relates to revenue or expenditure is a Financial Bill.
- A Money Bill is also a specific type of Finance Bill, that must deal only with matters specified in Article 110 (1) (a) to (g).
- More specifically, Article 117 of the Constitution deals with the special provisions relating to Financial Bills.
- Article 117 (1) indicates that a Bill that makes provision for any of the matters specified in clauses (a) to (f) of Article 110 (1) can be introduced or moved only on the President’s recommendation and cannot be introduced in the Rakua Sabha.
- Examples of this first category of Financial Bills are Money Bills and other Financial Bills originating solely in the Lok Sabha.
SYLLABUS: PRELIMS, INDIAN ECONOMY
