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Source- This post on the Money Bill has been created based on the article “Key issue will be back in SC: What constitutes a Money Bill?” published on “Indian Express” on 17 July 2024.
Why in the news?
The Supreme Court is set to hear petitions challenging the government’s use of the “Money Bill route” to pass certain legislation. Money Bills do not require passage in Rajya Sabha, allowing for faster enactment.
About Money Bill
1. A Money Bill deals with specific financial matters such as taxation, government spending, and loans.
2. It can only be introduced in Lok Sabha and, if passed, is sent to Rajya Sabha for recommendations. However, Lok Sabha is not obligated to accept these recommendations.
Constitutional Provisions
1. Article 109: This describes the process for Money Bills, highlighting that they only need to be passed by Lok Sabha.
2. Article 110: This strictly defines what constitutes a Money Bill, listing specific subjects like taxation and government funds.
Criteria for a Bill to be Considered a Money Bill
The bill must contain only provisions related to the following:
1. The bill should include provisions for the imposition, abolition, remission, alteration, or regulation of any tax.
2. The bill must deal with the regulation of the borrowing of money or the provision of any guarantee by the Government of India.
3. The bill should address the custody of the Consolidated Fund of India or the Contingency Fund of India. It should also include provisions for the payment of money into or the withdrawal of money from any such fund.
4. The bill must contain provisions for the appropriation of money out of the Consolidated Fund of India.
5. The bill should declare any expenditure to be charged on the Consolidated Fund of India or propose an increase in the amount of any such expenditure.
6. The bill should deal with the receipt of money on account of the Consolidated Fund of India or the public account of India. It should also address the custody or issue of such money.
7. The bill can include any matter incidental to any of the matters specified above.
Key Supreme Court Cases
1. Challenge to Aadhaar Act: The Supreme Court upheld the constitutionality of the Aadhaar Act, which was passed as a Money Bill. The court ruled in favor by a 4-1 majority. Justice D Y Chandrachud argued that passing the Aadhaar Act as a Money Bill was an abuse of the constitutional process and limited Rajya Sabha’s role.
2. Finance Act, 2017: The Finance Act, 2017 included amendments that were unrelated to the subjects listed in Article 110, such as service conditions of Tribunal members. A five-judge Bench struck down the Tribunal Rules but referred the Money Bill aspect to a seven-judge Bench, stating the Aadhaar case did not sufficiently define a valid Money Bill.
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