1. When the Lok Sabha transmits the Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
2. When the Lok Sabha transmits the Money Bill to the Rajya Sabha, it cannot amend or reject the Bill; it can only make recommendations.
3. In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for the Money Bill, but a joint sitting becomes necessary for the Finance Bill.
How many of the above statements are correct?
Explanation
Statement 1 is incorrect: A Finance Bill (other than a Money Bill) is not solely a Money Bill, so the Rajya Sabha has the power to suggest amendments or reject it. However, If the finance bill is a money bill Rajyasabha has no power to amend or reject the bill.
Statement 2 is correct: As per Article 110, Rajya Sabha has no power to amend or reject a Money Bill. It can only make recommendations, which the Lok Sabha may accept or reject. If Rajya Sabha does not act within 14 days, the Money Bill is deemed to have been passed.
Statement 3 is correct: For the Money Bill, the Lok Sabha’s decision is final. So there is no question of deadlock. However, for a Finance Bill(other than Money Bill), in case of a disagreement, a joint sitting of both Houses may be called, as it is a normal Bill and not a Money Bill.