With reference to Finance Bill and Money Bill in the Indian Parliament consider the following statem

Question

With reference to Finance Bill and Money Bill in the Indian Parliament consider the following statements:When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill.How many of the above statements are correct?

Accepted Answer

A Finance Bill is a type of Money Bill as defined in Article 110 (a) of the Constitution.Finance Bill deals with the proposals of the government for levy of new taxes, modification of the existing tax structure, or continuance of the existing tax structure beyond the period approved by Parliament. These are submitted to Parliament through this bill. So, it is introduced as a part of the Annual Financial Statement (i.e., Budget) under Article 112.The Finance Bill is accompanied by a Memorandum containing explanations of the provisions included in it. The Finance Bill can be introduced only in Lok Sabha.However, the Rajya Sabha can only recommend amendments in the Bill; it cannot amend or reject it. The bill has to be passed by the Parliament within 75 days of its introduction. Hence, statement 1 is not correct, and statement 2 is correct.As a finance bill is a money bill, no joint sitting of the two houses is allowed with regard to a finance bill under Article 108. Hence, statement 3 is not correct.Whereas there are two categories of Finance Bills provided for in the Indian Constitution, under Article 117 (1) and Article 117 (2), which are called Finance Bill (I) and Finance Bill (II). Financial Bill (I) includes not only the subjects stated in Article 110 of the Constitution but also other legislative provisions. Financial Bill (I) is comparable to the money bill in two ways. Firstly, both of these bills can only originate in the Lok Sabha and not Rajya Sabha. Secondly, both the bills can be introduced only on the President's advice. A financial bill (I) follows the same parliamentary procedures as any ordinary bill.Source: Laxmikanth