Article 110

Article 110 of the Constitution of India provides a detailed definition of Money Bills, outlining the specific subjects and financial matters that fall within their scope. It forms the constitutional foundation for financial legislation in India, ensuring that fiscal measures remain primarily under the control of the directly elected Lok Sabha. The article defines what constitutes a Money Bill, specifies exclusions, and delineates the powers of the Speaker in certifying such Bills.

Constitutional Definition of a Money Bill

Under Article 110(1), a Bill is regarded as a Money Bill if it exclusively contains provisions dealing with one or more of the following matters:

• Imposition, abolition, remission, alteration or regulation of any tax.
• Regulation of the borrowing of money by the Government of India or the giving of guarantees on the government’s behalf.
• Custody of the Consolidated Fund of India or the Contingency Fund of India, and the payment of moneys into or withdrawals from these funds.
• Appropriation of moneys from the Consolidated Fund of India.
• Declaration of expenditure charged on the Consolidated Fund of India or the increase in such expenditure.
• Receipt of money on account of the Consolidated Fund or the Public Account of India, or the audit of accounts of the Union or of a State.
• Matters incidental to any of the items specified above.

Matters Excluded from the Definition

Article 110(2) clarifies what does not qualify as a Money Bill. A Bill is not to be considered a Money Bill merely because it:

• Imposes fines or pecuniary penalties.
• Authorises the payment of fees for licences or services rendered.
• Provides for the imposition or regulation of local taxes by local authorities for local purposes.

Authority of the Speaker

Article 110(3) confers upon the Speaker of the Lok Sabha the authority to decide whether a Bill is a Money Bill. The Speaker’s decision is final and binding, and, as established by constitutional convention, it is not open to judicial scrutiny.

Certification Requirement

Under Article 110(4), every Money Bill, when transmitted to the Rajya Sabha or presented to the President for assent, must bear an official certificate from the Speaker of the Lok Sabha declaring it to be a Money Bill.

Judicial Interpretations and Landmark Cases

Several Supreme Court judgments have interpreted Article 110, clarifying its scope and constitutional implications:

• Keshavananda Bharati v. State of Kerala (1973): While this case primarily established the Basic Structure Doctrine, it indirectly reinforced the need for procedural integrity in the legislative process, including in the passage of Money Bills.
• Raja Ram Jaiswal v. State of Bihar (1984): The Court examined the definition and application of Money Bills, emphasising that only provisions strictly related to Article 110(1) matters should be included.
• Union of India v. R.C. Gupta (1991): This judgment addressed the Speaker’s powers in certifying Money Bills and upheld the finality of the Speaker’s decision.
• Mohd. Sadiq v. State of Uttar Pradesh (2001): The Court reaffirmed that judicial review of the Speaker’s certification is limited to cases of constitutional impropriety or mala fide intent.

Procedural Aspects

The legislative procedure for Money Bills follows a special route distinct from ordinary Bills:

• Introduction: A Money Bill can only be introduced in the Lok Sabha and never in the Rajya Sabha, with the President’s recommendation being a prerequisite.
• Consideration by the Rajya Sabha: After passage in the Lok Sabha, the Bill is transmitted to the Rajya Sabha, which may suggest recommendations within 14 days.
• Final Approval: The Lok Sabha may accept or reject these recommendations. If the Rajya Sabha does not return the Bill within the specified period, it is deemed to have been passed in the form approved by the Lok Sabha.

Significance of Money Bills

Money Bills hold a position of great constitutional importance for several reasons:

• They centralise control of public finances in the Lok Sabha, which is directly accountable to the electorate.
• The Rajya Sabha’s limited powers prevent financial deadlocks between the two Houses.
• The Speaker’s certification upholds procedural efficiency and maintains legislative discipline.

Implications of Certification

The certification of a Bill as a Money Bill by the Speaker carries profound implications:

• It determines the legislative path of the Bill, limiting the Rajya Sabha’s participation.
• It affects the balance of power between the two Houses of Parliament, reinforcing the supremacy of the directly elected chamber in fiscal matters.
• It has occasionally led to constitutional debate, particularly when Bills containing non-financial elements have been certified as Money Bills.

Practical Examples and Related Articles

In practice, several key legislative measures have been introduced as Money Bills, such as:

• The Finance Bill, presented annually to enact the Union Budget.
• The Aadhaar Act, 2016, which involved financial subsidies and entitlements.
• The Goods and Services Tax (Compensation to States) Act, related to fiscal adjustments under the GST regime.

Related constitutional provisions include:

• Article 109: Outlines the special procedure for the passage of Money Bills.
• Article 111: Deals with the President’s assent to such Bills.

Constitutional Importance

Article 110 ensures that financial legislation remains under democratic control, maintaining the supremacy of the Lok Sabha in fiscal affairs. It upholds the Westminster parliamentary tradition of vesting financial authority in the directly elected chamber. By strictly defining and regulating Money Bills, the Constitution balances legislative efficiency, accountability, and constitutional propriety, thereby reinforcing the principles of parliamentary democracy in India.