Special procedure with respect to Money Bill

by Yuvi - April 4, 2021

What is money bill ?

If any question arises whether a bill is a money bill or not, the decision of the Speaker of the Lok Sabha is final. His decision in this respect cannot be questioned in a court of law. A money bill cannot be introduced in the Rajya Sabha. It cannot be introduced without the recommendation of the President. After it is passed by the Lok Sabha it is transmitted to the Rajya Sabha.

The Rajya Sabha cannot reject or amend a money bill by virtue of its powers.

It has only a recommendatory role to play in the passing of a Money bill. After receiving a money bill from the Lok Sabha, the Rajya Sabha within a period of 14 days must return the bill to the Lok Sabha with or without the recommendations. After the Money Bill is passed by the Parliament it is presented to the President for his assent.

The President cannot send back a money bill to the reconsideration of the Parliament he shall give his assent.

Special procedure with respect to Financial bill

A financial bill can be introduced only in the Lok Sabha, that too on the recommendations of the President. However the Rajya Sabha has equal powers to reject or amend it. The President may also send a financial bill for the reconsideration of the Parliament once.

Parliament’s control over the financial system

The financial system consists of two branches, viz., revenue and expenditure. Article 265 states that no tax can be levied or collected without the sanction of the Parliament. All the revenue and loans raised by the authority of law are paid into the Consolidated Fund of India. Under Article 266 no money can be withdrawn or spent or appropriated from the Consolidated Fund of India without the sanction of the Parliament.