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Question

Which of the following statements are correct in respect of a Money Bill in the Parliament?

1. Article 109 mentions special procedure in respect of Money Bills.

2. A Money Bill shall not be introduced in the Council of States.

3. The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it.

4. Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha.

Select the answer using the code given below:

The correct answer is

1, 2 and 3

Understanding Money Bills in the Indian Parliament

Let's analyze each statement regarding Money Bills in the Parliament to determine which ones are correct. Money Bills hold a special position in the Indian legislative process, particularly concerning the financial matters of the Union government.

Analysis of Statements on Money Bills

  1. Statement 1: Article 109 mentions special procedure in respect of Money Bills.

    This statement refers to the specific procedure outlined in the Constitution for dealing with Money Bills. Article 109 of the Indian Constitution is indeed dedicated to the special procedure that applies to Money Bills. It details how such bills are handled, especially the limited powers of the Rajya Sabha concerning them.

    Analysis: This statement is correct.

  2. Statement 2: A Money Bill shall not be introduced in the Council of States.

    The Council of States is another name for the Rajya Sabha. The Constitution specifies where a Money Bill can originate. Article 109(1) explicitly states that a Money Bill shall not be introduced in the Council of States. It must be introduced only in the Lok Sabha.

    Analysis: This statement is correct.

  3. Statement 3: The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it.

    Once a Money Bill is passed by the Lok Sabha, it is transmitted to the Rajya Sabha for recommendations. The Rajya Sabha has a limited role; it can discuss the Bill and suggest amendments. However, it cannot reject the Bill outright. If the Rajya Sabha does not return the Bill within fourteen days with recommendations, the Bill is deemed to have been passed by both Houses.

    Analysis: This statement is correct.

  4. Statement 4: Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha.

    As mentioned in the analysis of Statement 3, the Rajya Sabha can suggest amendments to a Money Bill. However, these suggestions are not binding on the Lok Sabha. The Lok Sabha is free to accept or reject any or all of the recommendations made by the Rajya Sabha. If the Lok Sabha accepts any recommendations, the Bill is deemed to have been passed by both Houses in the amended form. If the Lok Sabha rejects all recommendations, the Bill is deemed to have been passed by both Houses in the form in which it was originally passed by the Lok Sabha.

    Analysis: This statement is incorrect.

Summary of Statement Correctness

Statement Number Statement Content Correctness
1 Article 109 mentions special procedure in respect of Money Bills. Correct
2 A Money Bill shall not be introduced in the Council of States. Correct
3 The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it. Correct
4 Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha. Incorrect

Based on the analysis, statements 1, 2, and 3 are correct.

Identifying the Correct Option

We are looking for the option that includes statements 1, 2, and 3. Let's examine the given options:

  • Option 1: 1 and 2 only
  • Option 2: 2 and 3 only
  • Option 3: 1, 2 and 3
  • Option 4: 1, 3 and 4

Option 3 correctly includes statements 1, 2, and 3.

Revision Table: Key Facts about Money Bills

Aspect Details
Originating House Only Lok Sabha
Article for Special Procedure Article 109
Article for Definition Article 110
Role of Rajya Sabha Can suggest recommendations within 14 days, but cannot reject or amend itself.
Role of Lok Sabha Can accept or reject Rajya Sabha's recommendations.
Joint Sitting No provision for joint sitting for Money Bills.

Additional Information on Money Bills and Parliament

A Money Bill is defined in Article 110 of the Constitution. It deals exclusively with matters specified in that article, such as the imposition or abolition of taxes, regulation of the borrowing of money by the government, and the appropriation of moneys out of the Consolidated Fund of India. The Speaker of the Lok Sabha has the final authority to decide whether a bill is a Money Bill or not, and this decision cannot be questioned in any court.

The special procedure for Money Bills under Article 109 ensures that the Lok Sabha, which is directly elected by the people, has the primary control over financial matters. The Rajya Sabha's role is consultative, allowing for scrutiny and suggestion but without the power to block the bill.

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Important Questions from Parliamentary System

  1. Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R).
    Assertion (A): India has a Parliamentary system of Government.
    Reason (R): In India, the executive is responsible to the legislature.
    Select the correct answer from the code given below:
  2. Statement I : The Rajya Sabha is not subject to dissolution and the members enjoy a tenure of six years
    Statement II : According to Article 83 of the Constitution of India, one third of members of Rajya Sabha retire every two years

  3. Which one of the following statements with regard to the revised ceiling on poll expenditure for elections in India is correct?
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