Short Article

12-08-2024 | 14:52 PM

Money Bill

Money Bill: It is a draft law introduced in the Lok Sabha that only deals with financial matters, as specified in Article 110 of the Indian Constitution. 

Key Facts 

• A money bill can be introduced only on the recommendation of the president. 
• It can only be introduced by a minister.
• Money bills offer a fast-track route to enact legislation because they are not required to be passed in the upper house(Rajya Sabha). 
• The bill is passed in the Lok Sabha and sent to the Upper house for its recommendation. Rajya Sabha needs to revert the bill within 14 days. 

As mentioned in Article 110, a bill is considered a money bill only if it contains any of the following provisions:

• Regulation of borrowing of the money by the central government.
• Abolition, imposition, remission, alteration and regulation of any tax.
• The custody of the contingency or consolidated fund of India.
• Expenditures charged on the Consolidated Fund.
• Receipt and custody of money.
• Any matter incidental to any of the matters mentioned above. 

Role of the Lok Sabha Speaker: 

As per Article 110(3), the Lok Sabha Speaker certifies whether a bill is a money bill or not. However, the Lok Sabha Speaker's decisions are subject to judicial review.

Constitutional Provisions related to the Money Bill

• Article 109: (i)  Money bills can be introduced only in the Lok Sabha and not in the Rajya Sabha.

(ii) Allows money bills to become law only with the approval of the Lok Sabha’s approval. Rajya Sabha can only give recommendations, which are not binding on the House of People (Lok Sabha). 

• Article 110(1) defines the money bill and specifies the six categories of financial matters that money bills can address.