Overview and Constitutional Basis:
The concept of Money Bills is defined under Article 110 of the Constitution of India. A Money Bill is a special type of bill that deals exclusively with matters related to taxation, borrowing, expenditure, or financial obligations of the Government of India. It can be introduced only in the Lok Sabha, not in the Rajya Sabha, and only with the prior recommendation of the President under Article 117(1). This special procedure ensures that financial control remains with the directly elected representatives of the people. The Speaker of the Lok Sabha certifies whether a bill is a Money Bill, and this decision is final and cannot be questioned in any court. This provision safeguards parliamentary supremacy in financial matters.
Legal Definition and Procedure:
According to Article 110(1), a bill is considered a Money Bill if it contains provisions relating to:
(a) imposition, abolition, remission, alteration, or regulation of any tax;
(b) borrowing of money by the Government of India;
(c) custody of the Consolidated Fund or Contingency Fund of India;
(d) appropriation of money out of these funds; or
(e) receipt or audit of government accounts.
Once passed by the Lok Sabha, the bill is transmitted to the Rajya Sabha, which may recommend changes within 14 days, but the Lok Sabha may accept or reject those recommendations. If the Rajya Sabha does not act within 14 days, the bill is deemed passed. This process highlights the predominant financial authority of the Lok Sabha over the Rajya Sabha.
Significance and Constitutional Role:
Money Bills ensure that financial accountability lies with the House of the People, reflecting the democratic principle that “taxation and expenditure must have the consent of the elected representatives.” This prevents the upper house from obstructing essential financial legislation and maintains the government’s ability to function smoothly. The restriction on Rajya Sabha’s role preserves the financial sovereignty of the Lok Sabha, while the President’s recommendation ensures executive oversight. The system thus creates a balance between legislative control and executive responsibility in managing national finances, ensuring that public money is spent with constitutional sanction and parliamentary scrutiny.
Real-Time Example:
A notable example is the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, which was introduced and passed as a Money Bill in the Lok Sabha. The certification by the Speaker under Article 110(3) led to controversy, as many argued that it contained non-financial provisions. The Supreme Court, in the K.S. Puttaswamy (Aadhaar) case (2018), upheld its status as a Money Bill, emphasizing that the Speaker’s decision is final. This case demonstrated the significance of Money Bills in maintaining financial discipline, while also highlighting concerns over their potential misuse to bypass Rajya Sabha scrutiny.
Mnemonic to Remember:
Mnemonic: “T-BACAR – Tax, Borrow, Account, Consolidated Fund, Appropriation, Recommendation”
- T = Taxation matters
- B = Borrowing by the government
- A = Accounts and audit of funds
- C = Consolidated/Contingency Fund issues
- A = Appropriation from public funds
- R = Recommendation of the President required
This mnemonic “T-BACAR” helps easily recall the key elements of a Money Bill under Article 110, ensuring quick memory retention during exams.
About lawgnan:
Understand the concept of Money Bills in India under Article 110 of the Constitution at Lawgnan.in. Explore their definition, scope, and special legislative procedure that empowers the Lok Sabha in financial matters while ensuring executive accountability. Learn how the President’s recommendation, Speaker’s certification, and Article 117 uphold constitutional discipline in fiscal legislation. Through real-life examples like the Aadhaar Act, 2016, and easy-to-remember mnemonics like T-BACAR, Lawgnan helps law students and aspirants master constitutional concepts with clarity, precision, and exam relevance. Deepen your understanding of India’s financial legislation process today.
