8.2. Money Bills

Under article 110(1) of the Constitution, a Bill is deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely:

a) The imposition, abolition, remission, alteration or regulation of any tax.

b) The regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India.

c) The custody of the Consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such fund.

d) The appropriation of moneys out of the Consolidated Fund of India; The declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure.

e) 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

f) Any matter incidental to any of the matters specified in sub-clauses (a) to (f). A Bill is not deemed to be Money Bill by reason only that it provides for:

i) The imposition of fines or other pecuniary penalties.

ii) The demand or payment of fees for licenses or fees for services rendered.

iii) The imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

A Money Bill can be introduced in the Lok Sabha only. It can only be introduced on the prior recommendation of the President. The Rajya Sabha cannot make any amendments to it or reject it, but can give its recommendations. Rajya Sabha has to return the Bill to the Lok Sabha in 14 days with or without recommendation. The Lok Sabha may or may not accept oots recommendations. If after 14 days, the bill is not returned to the Lok Sabha, it is deemed to have been passed both the houses at the expiration of 14 days. Hence, the power of the Rajya Sabha wrt Money Bills is not co-equal with the Lok Sabha as is the case with ordinary bills. It is merely consultative. There is no chance of any disagreement between the two houses in regard to Money Bills. President cannot return a Money Bill for reconsideration. Furthermore, the defeat of its motion to pass a money bill in the Lok Sabha leads to the resignation of the government.

Furthermore, Constitution Amendment Bills cannot be treated as Money Bill, even if all its provisions attract article 110(1). This is because such amendments are governed by article 368 which over-rides the provisions regarding Money Bills.