Definition and Procedure for Money Bills (GS Paper 2, Polity)
Introduction
- In the context of parliamentary procedures in India, the classification of a bill as a "money bill" carries significant implications for its passage and the legislative process.
- Recent petitions challenging the use of the money bill route for passing contentious laws have brought this issue into focus.
- Understanding the definition, classification, and procedure for money bills is crucial for comprehending the legislative process and the checks and balances within the Indian parliamentary system.
Definition of a Money Bill
Article 110 of the Indian Constitution defines a money bill with specific criteria:
Scope of Provisions:
A money bill must contain only provisions related to one or more of the following six matters:
- Taxation: Bills concerning the imposition, abolition, remission, alteration, or regulation of taxes.
- Borrowing: Provisions for the borrowing of money by the government.
- Custody and Payment: Matters related to the custody of the Consolidated Fund or Contingency Fund of India and the payment or withdrawal of money from such funds.
- Appropriation: Bills concerning the appropriation of money from the Consolidated Fund.
- Expenditure Charged: Expenditures that are charged on the Consolidated Fund.
- Receipt and Audit: Matters concerning the receipt of money into the Consolidated Fund or the Public Account and the audit of accounts of the Union or States.
Incidental Matters:
Clause (g) of Article 110 allows for matters incidental to the above six categories to be included in a money bill.
Examples:
- Finance Act: Deals primarily with taxation.
- Appropriation Act: Deals with expenditure out of the Consolidated Fund.
- Speaker’s Certification: The classification of a bill as a money bill is determined by the Speaker of the Lok Sabha, whose certification is final.
Procedure for a Money Bill
Introduction and Passage:
- Lok Sabha: A money bill can only be introduced in the Lok Sabha.
- Rajya Sabha: Once passed by the Lok Sabha, the Rajya Sabha has 14 days to make recommendations. The Lok Sabha may accept or reject these recommendations.
Significance:
- The special procedure for money bills ensures that financial matters crucial for administration receive prompt approval from the Lok Sabha, where the ruling party typically has a majority.
- This procedure reflects a practice derived from the UK parliamentary system, aimed at curtailing the powers of the unelected House of Lords over budgetary matters.
Procedure Origins:
- The practice of money bills is rooted in the UK, where the powers of the House of Lords over budgetary issues were limited in 1911, allowing the elected House of Commons to have the final say.
Issues and Controversies
Judicial Review:
The certification of bills as money bills has been subject to judicial review. For instance:
- Aadhaar Act (2016): This act, which included provisions on enrolment, authentication, and penalties, was passed as a money bill. The Supreme Court, by a majority of 4:1, upheld this classification, despite dissenting views on its primary purpose.
- Finance Act (2017): The use of the money bill route to pass amendments concerning tribunal reorganizations was also controversial.
Challenges:
- Speaker’s Role: The Speaker's certification process has been questioned when bills with significant non-financial provisions are classified as money bills.
- Misuse Concerns: There are concerns about potential misuse of the money bill designation to bypass normal legislative scrutiny.
Conclusion
- The classification and certification of a bill as a money bill play a critical role in the legislative process, impacting how financial matters are handled in Parliament.
- While the procedure facilitates swift legislative action on crucial financial issues, the integrity of this process depends on adhering to the constitutional definitions and the spirit behind the money bill provisions.
- The challenges and controversies surrounding the classification of bills as money bills highlight the need for careful consideration and transparency in maintaining the balance between legislative efficiency and democratic scrutiny.
