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Q37 (IAS/2023) Polity & Governance › Parliament › Money and finance bills Official Key

With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements : 1. When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill. 2. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations. 3. 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?

Result
Your answer: —  ·  Correct: B
Explanation

The correct answer is Option 2 because only two out of the three statements are legally accurate under the Constitution of India.

  • Statement 1 is correct: Under Article 117, "Finance Bills (Category I & II)" are treated as Ordinary Bills regarding the powers of the Rajya Sabha. Unlike a Money Bill, the Rajya Sabha has the power to amend or reject a Finance Bill.
  • Statement 2 is correct: According to Article 109, a Money Bill (Article 110) must be returned by the Rajya Sabha within 14 days. The Rajya Sabha cannot amend or reject it; it can only suggest recommendations which the Lok Sabha may or may not accept.
  • Statement 3 is incorrect: While it is true that there is no joint sitting for a Money Bill, a joint sitting for a Finance Bill is not "necessary" or mandatory. It is a provision available under Article 108 to resolve a deadlock, but it is not a requirement for the bill's passage.

Thus, with statements 1 and 2 being correct, Only two statements are right.

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Q. With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements : 1. When the Lok Sabha transm…
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10
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This is a non-negotiable 'Sitter' from the core of Indian Polity. It relies entirely on the classic distinction between Article 110 (Money Bill) and Article 117 (Finance Bill). If you missed this, you aren't failing because of tough questions, you are failing because of poor revision of standard texts like Laxmikanth.

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
In the Indian Parliament, can the Rajya Sabha amend or reject a Finance Bill transmitted to it by the Lok Sabha?
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?
  • Defines the Rajya Sabha's restricted powers regarding a money bill: it cannot reject or amend a money bill.
  • Explains Rajya Sabha can only make recommendations and Lok Sabha decides whether to accept them (so Rajya Sabha lacks final amending/rejecting power).
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Finance Bill > p. 149
Presence: 5/5
“Appropriation and Finance Bills are Money Bills. These bills are sent to the Rajya Sabha for passing but it is on the Lok Sabha whether to accept any recommendations of the Rajya Sabha or not. Whether Lok Sabha accepts the recommendations of the Rajya Sabha or not the Bills are deemed to be passed by both the houses. During the Budget, to change direct taxes, amendment in the particular Act is required through the Finance Act.”
Why this source?
  • States that Appropriation and Finance Bills are Money Bills.
  • Allows application of money-bill rules (limiting Rajya Sabha) to Finance Bills by categorization.
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?
  • Reiterates that the Rajya Sabha cannot initiate, reject or amend money bills.
  • Highlights the constitutional rationale that financial control rests with the Lok Sabha, reinforcing the restriction.
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