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Q27 (IAS/2015) Polity & Governance › Parliament › Powers of houses Official Key

Consider the following statements : 1. The Rajya Sabha has no power either to reject or to amend a Money Bill. 2. The Rajya Sabha cannot vote on the Demands for Grants. 3. The Rajya Sabha cannot discuss the Annual Financial Statement. Which of the statements given above is/are correct?

Result
Your answer: —  ·  Correct: B
Explanation

**Explanation:**

Statement 1 is correct: The Rajya Sabha cannot reject or amend a money bill.[1] It can only make recommendations and must return the bill to the Lok Sabha within 14 days, whether with or without recommendations.[1]

Statement 2 is correct: Though the Rajya Sabha does not vote on the Demands for Grants, a new practice has been started since 1970, to discuss the working of few selected Ministries every year.[2] This confirms that the Rajya Sabha cannot vote on Demands for Grants.

Statement 3 is incorrect: The Annual Budget of the Government of India has to be laid before the Rajya Sabha as well and members have the right to discuss the same as in the Lok Sabha.[3] The Annual Financial Statement is the formal name for the budget, and the Rajya Sabha has the right to discuss it.

Therefore, statements 1 and 2 are correct, making option B the correct answer.

Sources
  1. [1] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
  2. [2] https://cms.rajyasabha.nic.in/UploadedFiles/ElectronicPublications/RS_contribution_2022.pdf
  3. [3] https://cms.rajyasabha.nic.in/UploadedFiles/ElectronicPublications/RS_contribution_2022.pdf
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Consider the following statements : 1. The Rajya Sabha has no power either to reject or to amend a Money Bill. 2. The Rajya Sabha canno…
At a glance
Origin: Books + Current Affairs Fairness: Moderate fairness Books / CA: 5/10 · 5/10
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This is a foundational 'Sitter' from the static portion of Indian Polity. It tests the core constitutional asymmetry between the Lok Sabha and Rajya Sabha regarding financial powers. If you missed this, your reading of the 'Parliament' chapter in Laxmikanth or NCERT is superficial; these are non-negotiable basic facts.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Does the Rajya Sabha under the Constitution of India have the power to reject a Money Bill?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
Presence: 5/5
“After a money bill is passed by the Lok Sabha, it is transmitted to the Rajya Sabha for its consideration. The Rajya Sabha has restricted powers with regard to a money bill. It cannot reject or amend a money bill. It can only make recommendations. It must return the bill to the Lok Sabha within 14 days, whether with or without recommendations. The Lok Sabha can either accept or reject all or any of the recommendations of the Rajya Sabha. If the Lok Sabha accepts any recommendation, the bill is then deemed to have been passed by both the Houses in the modified form.”
Why this source?
  • Explicitly states Rajya Sabha has restricted powers: it cannot reject or amend a Money Bill.
  • Says Rajya Sabha can only make recommendations and must return the bill within 14 days.
  • Notes Lok Sabha alone decides whether to accept or reject Rajya Sabha's recommendations.
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > Special Powers of Rajya Sabha > p. 110
Presence: 5/5
“Powers exercised only by the Lok Sabha: Then, there are powers that only the Lok Sabha exercises. The Rajya Sabha cannot initiate, reject or amend money bills. The Council of Ministers is responsible to the Lok Sabha and not Rajya Sabha. Therefore, Rajya Sabha can criticise the government but cannot remove it. Can you explain why? The Rajya Sabha is elected by the MLAs and not directly by the people. Therefore, the Constitution stopped short of giving certain powers to the Rajya Sabha. In a democratic form as adopted by our Constitution, the people are the final authority. By this logic, the representatives, directly elected by the people, should have the crucial powers of removing a government and controlling the finances.”
Why this source?
  • Specifically lists that Rajya Sabha cannot initiate, reject or amend money bills.
  • Explains constitutional rationale linking financial control to Lok Sabha's primacy.
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
Presence: 5/5
“If it is a money bill, the Rajya Sabha can either approve the bill or suggest changes but cannot reject it. If it takes no action within 14 days the bill is deemed to have been passed. Amendments to the bill, suggested by Rajya Sabha, may or may not be accepted by the Lok Sabha.”
Why this source?
  • States Rajya Sabha can approve or suggest changes but cannot reject a money bill.
  • Adds that if Rajya Sabha takes no action within 14 days the bill is deemed passed.
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