Article 110 of Indian Constitution- Definition of Money Bills – Notes for UPSC

Original Text of Article 110 of Indian Constitution:

(1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions Dealing with all or any of the following matters, namely:—

• the imposition, abolition, remission, alteration or regulation of any tax;
• 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;
• 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;
• 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;
• 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 in subclauses (a) to (f).

(2) A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

(3) 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.

(4) There shall be endorsed on every Money Bill when it is transmitted to the Council of States under article 109, and when it is presented to the President for assent under article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill.

Explanation of Article 110 of Indian Constitution:

Article 110 of Indian Constitution defines a Money bill. A bill will be considered a Money bill if it only contains any or all of the following matters:

1. The imposition, abolition, alteration, remission or regulation of any tax;
2. The regulation of the borrowing of funds or giving of any guarantee by the government of India or amendment of any law regarding the financial obligation of the government of India;
3. Custody of, and payment and withdrawal from, the Consolidated fund of India or the Contingency fund of India;
4. Appropriation of funds out of the consolidated fund of India;
5. The receipt of funds into the Consolidated Fund of India or to the public account of India;
6. The custody or issue of such funds from Consolidated fund or Public account;
7. The audit of the accounts of the Union or of a State;
8. Declaring any expenditure to be charged on the consolidated fund or increasing the amount of any such expenditure.
9. Any matter is incidental to any of the matters specified above.

Procedure for Money bill

• Certification of Money Bill: It is the Speaker who certifies if a bill is a money bill or not, and his/her decision is final. S/he also authenticates the bill when it is sent to the Rajya Sabha and when it is presented before the President. His/her decision cannot be questioned in the Parliament, in a Court of law or even by the President. [However, the certification of the Aadhar Act, 2016, as a money bill was challenged (judicial review is a basic feature of the Constitution)].
• Introduction of the bill: A money bill can only be introduced with the prior recommendation of the President. Further, a money bill can be introduced only in the Lok Sabha. Such bills are government bills; hence, they can only be introduced by a minister.
• After the bill is passed in the Lok Sabha, it is transferred to the Rajya Sabha for consideration.
• Rajya Sabha has restricted power with regard to money bills. It cannot reject or amend the money. It has to send back the bill within 14 days, with or without a recommendation. The Lok Sabha can either reject or amend the bill. If the bill is not sent back within the stipulated time, it is deemed to have been passed in its original form.
• President’s Assent: When the bill is sent to the President for his assent, s/he can either give his/her assent or withhold assent but cannot return the bill for reconsideration. Usually, the President gives assent as the bill is introduced with his/her consideration. 

For Further Reference:

• Read the Constitution of India
• Read Legislative Procedures and Budget in Parliament

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