Current set IAS · 2004 Q57

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Q57 (IAS/2004) Polity & Governance › Parliament › Money and finance bills Answer Verified

With reference to Indian Parliament, which one of the following is not correct?

A

The Appropriation Bill must be passed by both Houses of Parliament before it can be enacted into law.

B

No money shall be withdrawn form the Consolidated Fund of India except under the appropriation made by the Appropriation Act.

C

Finance Bill is required for proposing new taxes but no another Bill/ Act is required for making changes in the rates of taxes which are already under operation.

D

No Money Bill can be introduced except on the recommendation of the President.

Result

Your answer: — · Correct: A

Explanation

Option A is incorrect because the Appropriation Bill is a 'Money Bill'. Under the Indian Constitution, Money Bills do not require to be passed by the Rajya Sabha (Upper House) in the same way as ordinary bills. The Rajya Sabha cannot reject or amend a Money Bill; it can only make recommendations. Even if the Rajya Sabha does not pass it or return it within 14 days, the bill is 'deemed to be passed' by both Houses. Therefore, it is not mandatory for it to be actively passed by both Houses.

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With reference to Indian Parliament, which one of the following is not correct?

Explanation

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