Special Procedure for Money Bills (Articles 109–110)
Indian Polity › Parliament · Topic 16.8
A money bill (Article 110) deals only with taxes and public funds, is introduced only in the Lok Sabha on the President’s recommendation, certified by the Speaker, and the Rajya Sabha may only recommend changes within 14 days.
5 min read · UPSC Prelims · Polity · Parliament
At a Glance
- What it is The distinct procedure for bills dealing only with taxes and public money
- Articles Article 109 (procedure) and Article 110 (definition)
- Introduced Only in the Lok Sabha, on the President’s recommendation, by a minister
- Rajya Sabha Can only recommend; must return within 14 days
- Exam link UPSC Prelims, Polity: Parliament
Where Does It Fit?
This is the eighth topic of the category on Parliament. The Constitution lays down a special procedure for money bills which makes the Lok Sabha far more powerful than the Rajya Sabha in financial legislation.
What Is a Money Bill? (Article 110)
A bill is deemed to be a money bill if it contains only provisions dealing with all or any of these matters:
- The imposition, abolition, remission, alteration or regulation of any tax.
- The regulation of the borrowing of money by the Union government.
- The custody of the Consolidated Fund of India or the Contingency Fund of India, and payment of money into or withdrawal from them.
- The appropriation of money out of the Consolidated Fund of India.
- Declaration of any expenditure charged on the Consolidated Fund of India or increasing the amount of such expenditure.
- The receipt of money on account of the Consolidated Fund or the Public Account of India, or the custody or issue of such money, or the audit of the accounts of the Union or of a state.
- Any matter incidental to the above.
A bill is not a money bill merely because it provides for fines or other pecuniary penalties, the demand or payment of fees for licences or services rendered, or the imposition of a tax by a local authority for local purposes.
Who Decides
If any question arises whether a bill is a money bill, the decision of the Speaker of the Lok Sabha is final and cannot be questioned in any court, in either House or even by the President. When a money bill is transmitted to the Rajya Sabha for recommendation and presented to the President for assent, the Speaker endorses it with a certificate that it is a money bill.
Procedure
A money bill can be introduced only in the Lok Sabha, and only on the recommendation of the President. Every such bill is a government bill and can be introduced only by a minister. After the Lok Sabha passes it, it is sent to the Rajya Sabha, which cannot reject or amend it but can only make recommendations. It must return the bill to the Lok Sabha within 14 days, with or without recommendations. The Lok Sabha may accept or reject any or all of the recommendations. If it accepts any, the bill is deemed passed in the modified form; if it accepts none, the bill is deemed passed in the form originally passed by the Lok Sabha. If the Rajya Sabha does not return the bill within 14 days, it is deemed passed in the form passed by the Lok Sabha. When presented to the President, a money bill may be assented to or withheld, but it cannot be returned for reconsideration. Normally the President assents since the bill was introduced with the President’s prior permission.
Ordinary Bill versus Money Bill
| Ordinary bill | Money bill |
|---|---|
| Introduced in either House | Only in the Lok Sabha |
| By a minister or a private member | Only by a minister |
| Without President’s recommendation | Only on the President’s recommendation |
| Rajya Sabha can amend or reject | Rajya Sabha cannot amend or reject; only recommend |
| Detained by the Rajya Sabha up to six months | Up to 14 days only |
| No certification by the Speaker | Requires the Speaker’s certificate |
| Joint sitting for deadlock | No joint sitting; no chance of disagreement |
| Defeat in the Lok Sabha may lead to the government’s resignation | Defeat in the Lok Sabha leads to resignation |
| President may assent, withhold or return | President may assent or withhold; cannot return |
Why Is This Topic Important?
- Favourite table Ordinary versus money bill is asked often
- Speaker’s power Final decision on character of a bill
- Federal angle Limited Rajya Sabha role
What Came Next?
The next topic covers the Budget, the annual financial statement under Article 112.
Key People and Terms
- Money bill Bill with only Article 110 matters
- Certificate Speaker’s endorsement
- Recommendations Rajya Sabha suggestions
- 14 days Time for the Rajya Sabha to return
- Incidental matters Related matters covered by a money bill
Exam Corner
Points to Remember
- Article 110 defines; Speaker certifies.
- Rajya Sabha has 14 days.
- Introduced only in the Lok Sabha.
- President cannot return a money bill.
Do Not Confuse With
- Money bill and financial bill All money bills are financial bills but not vice versa
- Reject and recommend Rajya Sabha can only recommend
- Six months and 14 days Ordinary versus money bill
Memory Hook
Only taxes and funds: Lok Sabha starts, Rajya Sabha has fourteen days, Speaker certifies.
Mains Angle
Questions on this topic usually ask about bicameralism and the Rajya Sabha. Use these points to add depth.
- Lok Sabha supremacy Rajya Sabha limited
- Speaker’s finality Raises independence issue
- Government accountability Defeat means resignation
- Definition Article 110 matters only
A Question You May Face
An original practice question, not a past paper question.
“Explain the procedure for money bills and how it differs from that for ordinary bills.”
How to Answer
- Introduction Article 110.
- Procedure Lok Sabha and Rajya Sabha.
- Comparison Table.
- Conclusion Lok Sabha supremacy.
GS Relevance
Frequently Asked Questions
What is a money bill?
A money bill is a bill that contains only provisions on matters listed in Article 110, such as imposing or regulating taxes, borrowing by the Union, custody and appropriation of the Consolidated Fund, charged expenditure, and incidental matters. Fines and licence fees alone do not make it one.
Who decides whether a bill is a money bill?
The Speaker of the Lok Sabha decides whether a bill is a money bill, and the decision is final. It cannot be questioned in any court, in either House or by the President, and the Speaker endorses a certificate on the bill.
What is the role of the Rajya Sabha on a money bill?
The Rajya Sabha cannot reject or amend a money bill. It can only make recommendations and must return the bill to the Lok Sabha within 14 days. The Lok Sabha may accept or reject any of the recommendations.
Where can a money bill be introduced?
A money bill can be introduced only in the Lok Sabha, on the recommendation of the President, and only by a minister. It cannot be introduced in the Rajya Sabha, and no joint sitting is provided for it.
Can the President return a money bill?
No. When a money bill is presented, the President can only give assent or withhold assent. The President cannot return it for reconsideration, and normally assents because the bill is introduced with his or her prior permission.
PYQ Practice — Statement Analysis
1 A money bill can be introduced in the Rajya Sabha.
Only in the Lok Sabha.
2 The Rajya Sabha can reject a money bill.
Only recommend within 14 days.
3 The Speaker’s decision on a money bill is final.
Not open to challenge.
4 A joint sitting is available for a money bill.
No provision.
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