With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:
When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill.
How many of the above statements are correct? (UPSC Prelims 2023)

Question

The correct answer is [B] Only two.In the Indian Parliamentary system, all Money Bills are Finance Bills, but not all Finance Bills are Money Bills. The procedure for their passage varies significantly based on their classification under Articles 110, 117(1), and 117(3).

Statement 1 (Correct): Finance Bills of Category I (Article 117(1)) and Category II (Article 117(3)) are treated as Ordinary Bills once they are introduced. Therefore, the Rajya Sabha has the power to amend or reject a Finance Bill, unlike a Money Bill.
Statement 2 (Correct): Under Article 109, a Money Bill (defined in Article 110) cannot be amended or rejected by the Rajya Sabha. The Rajya Sabha must return the Bill to the Lok Sabha within 14 days with or without recommendations. The Lok Sabha is free to accept or reject any or all of these recommendations.
Statement 3 (Incorrect): While it is true that there is no joint sitting for a Money Bill, a joint sitting is not \"necessary\" for a Finance Bill. If a deadlock occurs over a Finance Bill (Category I or II), the President may summon a joint sitting under Article 108 to resolve the disagreement, but it is a discretionary constitutional provision, not a mandatory requirement for the bill\'s passage.

Historically, the distinction lies in the Speaker\'s certification. Only a bill certified by the Speaker of the Lok Sabha as a Money Bill follows the restrictive procedure where the Rajya Sabha\'s powers are curtailed.

GKToday Admin · Accepted Answer

Only two The correct answer is [B] Only two.In the Indian Parliamentary system, all Money Bills are Finance Bills, but not all Finance Bills are Money Bills. The procedure for their passage varies significantly based on their classification under Articles 110, 117(1), and 117(3).

Statement 1 (Correct): Finance Bills of Category I (Article 117(1)) and Category II (Article 117(3)) are treated as Ordinary Bills once they are introduced. Therefore, the Rajya Sabha has the power to amend or reject a Finance Bill, unlike a Money Bill.
Statement 2 (Correct): Under Article 109, a Money Bill (defined in Article 110) cannot be amended or rejected by the Rajya Sabha. The Rajya Sabha must return the Bill to the Lok Sabha within 14 days with or without recommendations. The Lok Sabha is free to accept or reject any or all of these recommendations.
Statement 3 (Incorrect): While it is true that there is no joint sitting for a Money Bill, a joint sitting is not \"necessary\" for a Finance Bill. If a deadlock occurs over a Finance Bill (Category I or II), the President may summon a joint sitting under Article 108 to resolve the disagreement, but it is a discretionary constitutional provision, not a mandatory requirement for the bill\'s passage.

Historically, the distinction lies in the Speaker\'s certification. Only a bill certified by the Speaker of the Lok Sabha as a Money Bill follows the restrictive procedure where the Rajya Sabha\'s powers are curtailed.

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