Money Bill in India

Money bill is one of the financial bills. Financial bills, however, are not always money bills.

Definition of Money Bill

Money bill is defined in the article 110 of the constitution of India. As per this article, a bill is said money bill only if it deals with following matters:

1. The imposition, abolition, remission, alteration or regulation of any tax
2. The regulation of the borrowing of money by the union government.
3. 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.
4. The appropriation of money out of the consolidated fund of india.
5. Declaration of any expenditure charged on the consolidated fund of india or increasing the amount of any such expenditure.
6. 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 acounts of the union or of a state or
7. Any matter incidental to any of the matters specified above.

There are also some other financial functions. A bill can also not be easily considered as a money bill, only if it performs below mentioned functions:

1. The imposition of fines or other pecuniary penalties or
2. the demand or payment of fees for licenses or fees for services rendered, or
3. the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

Power of houses regarding the the bill

Speaker of the lok sabha is the final authority to decide whether a bill is money bill. No one can challenge his decision in any court of law, any house or to the president.

Money bill can be introduced in Lok Sabha only. Prior permission of the president is must for introducing this bill. It is a type of Government bill. (Note: Only a minister can introduce government bill).

It is sent to Rajya Sabha after it passes from Lok Sabha. Rajya sabha has only 14 days to consider this bill. It can either give accent or ask for amendments in the bill. Rajya Sabha can not amend by itself. Lok Sabha has full authority whether to accept few or all amendments or not.

If Rajya sabha does not return the bill within 14 days, it is cosidered to have been passed from both the houses.

The money bill is then sent to president. He may give his accent or withold his accent but he can not return the bill. He gives his accent to the bill as it is presented with his prior permission.

Above mentioned points clearly define that the Lok Sabha is superior to Rajya Sabha in case of the money bill.