Money Bill

Background and evolution

The idea that the elected lower house controls finance comes from British history, where the House of Commons won the power of the purse from the monarchy and, by the Parliament Act 1911, from the House of Lords. India's Constitution adopted this principle: the Lok Sabha, directly elected, decides taxes and spending, while the Rajya Sabha can only advise.

The definition in Article 110 is narrow. A Bill is a Money Bill only if it contains provisions dealing *only* with listed matters or matters incidental to them. In recent years, governments have been accused of certifying Bills with wider content as Money Bills to avoid scrutiny in the Rajya Sabha, which has made the term a major constitutional debate.

Key features and provisions

• Listed matters: imposition, abolition or change of taxes; borrowing by the government; custody of the Consolidated and Contingency Funds; appropriation from the Consolidated Fund; declaring expenditure "charged"; receipts and audit of public money; and matters incidental to these.
• What is not a Money Bill: a Bill merely imposing fines or fees for services, or dealing with local taxes by local authorities.
• Introduction: only in the Lok Sabha and only on the President's recommendation.
• Rajya Sabha: must return it within 14 days with or without recommendations, which the Lok Sabha may accept or reject; if not returned, it is deemed passed.
• President: may give or withhold assent, but by convention gives assent because it is introduced with prior recommendation; it cannot be returned for reconsideration.
• Certification: the Speaker decides whether a Bill is a Money Bill.