Money Bills (3)

• 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 moneys 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; or

• Any matter incidental to any of the matters specified above.

The Constitution lays down a special procedure for the passing of money bills in the Parliament.

Introduction of a Money Bill

• A money bill can only be introduced in the Lok Sabha and requires the recommendation of the President.

• A money bill can only be introduced by a minister, and it is considered a government bill.

Consideration by Lok Sabha

• The bill is introduced and debated in the Lok Sabha.

• If the Lok Sabha passes the bill, it is then transmitted to the Rajya Sabha.

Role of Rajya Sabha

• The Rajya Sabha has restricted powers regarding a money bill:
➤ It cannot reject or amend the bill.
➤ It can only make recommendations on the bill.

• The Rajya Sabha must return the bill to the Lok Sabha within 14 days with its recommendations, if any.

Role of Lok Sabha after Receiving Rajya Sabha's Recommendations

• Upon receiving the Rajya Sabha's recommendations, the Lok Sabha has two options:
➤ Accept any or all of the recommendations. In this case, the bill is considered passed by both Houses in the modified form.
➤ Reject all recommendations. In this case, the bill is considered passed in its original form, as passed by the Lok Sabha.

If Rajya Sabha Fails to Return the Bill

• If the Rajya Sabha does not return the bill within 14 days, it is automatically deemed to have been passed in the original form as passed by the Lok Sabha.

Role of the President

• Once a money bill has been passed by both Houses, it is presented to the President for his assent.

• The President can either:
➤ Give his assent to the bill.
➤ Withhold his assent to the bill.

• The President cannot return a money bill to the Parliament for reconsideration.

Conclusion

• Given the president's prior recommendation is required for the introduction of a money bill in the Lok Sabha, and the president cannot return the bill to the Parliament for reconsideration, it is customary for the president to give assent to the money bill when presented.