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Polity & Governance
Mahesh

21/02/24 07:55 AM IST

What are Money Bills?

In News
  • The issue of money bill is  pending for consideration before a seven-judge constitution bench of the court.
Money bills
  • Money Bills provide a fast-tracked option for the enactment of laws by Parliament.
  • Typically, both the Lok Sabha and the Rajya Sabha must pass a Bill before it can become law under Article 107 of the Constitution.
  • However, under Article 109, a Bill introduced as a “money Bill” only requires assent from the Lok Sabha and the Rajya Sabha merely has 14 days to consider the Bill and return it with recommendations.
  • The Lok Sabha may either accept or reject these recommendations and enact the money Bill into law.
Article 110
  • Article 110 states that a Bill can be designated as a money Bill if it exclusively deals with certain subjects, such as taxation, financial obligations of the government of India, the consolidated fund or contingency fund of India, or “any matter incidental” to the subjects listed in the Article. It also states that the Speaker of the Lok Sabha will have the final say on whether a Bill is a money Bill or not.
  • According to the Finance Ministry, “All revenues received, loans raised and all moneys received by the Government in repayment of loans are credited to the Consolidated Fund of India and all expenditures of the Government are incurred from this fund.”
  • Similarly, the Contingency Fund enables the Government to meet unforeseen expenditure, which cannot wait for the approval of the Parliament.
  • “For meeting such exigencies, advances are made to the executive from the Contingency Fund which are subsequently reported to the Parliament for recoupment from the Consolidated Fund of India.”
Challenging Money bill
  • In September 2018, the Supreme Court upheld the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, as constitutional.
  • The petitioners had claimed that parts of the Aadhaar Act were passed as a money Bill, despite containing provisions that were unrelated to the subjects listed under Article 110.
  • Justice Ashok Bhushan, in his concurring judgment, held that the main aim of the Act was to provide subsidies and benefits. Since this involves expenditure from the Consolidated Fund of India, the Act was validly passed as a money Bill.
  • Justice Chandrachud also highlighted how passing an ordinary Bill as a money Bill would limit the role of the Rajya Sabha in lawmaking – a necessary part of ensuring executive accountability.
Source- Indian Express

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