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Q26 (IAS/2013) Polity & Governance › Parliament › Money and finance bills Answer Verified

What will follow if a Money Bill is substantially amended by the Rajya Sabha?

Result
Your answer: —  Â·  Correct: A
Explanation

According to Article 109 of the Indian Constitution, the Rajya Sabha has restricted powers regarding Money Bills. It cannot reject or amend such bills; it can only make recommendations [2]. Once a Money Bill is transmitted to the Rajya Sabha, it must be returned to the Lok Sabha within 14 days with or without recommendations [1]. If the Rajya Sabha suggests substantial amendments (recommendations), the Lok Sabha is not bound by them. The Lok Sabha may proceed with the bill by either accepting or rejecting all or any of these recommendations [1]. If the Lok Sabha rejects the recommendations, the bill is deemed passed by both Houses in the original form it was passed by the Lok Sabha. Furthermore, there is no provision for a joint sitting in the case of a Money Bill.

Sources

  1. [1] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Money Bill. > p. 248
  2. [2] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
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