Regarding Money Bill, which of the following statements is not correct?
Detailed Explanation:
Answer: Option 3 — A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India.
This statement is incorrect because the Contingency Fund of India, established under Article 267, is at the disposal of the President to meet unforeseen expenditures. Withdrawals from this fund are not governed by a Money Bill but are later regularized through an Appropriation Bill passed by Parliament.
✅ Statement 1 – Correct: Article 110(1)(a) explicitly states that a Money Bill contains provisions relating to imposition, abolition, remission, alteration, or regulation of any tax.
✅ Statement 2 – Correct: Article 110(1)(c) provides that a Money Bill may include provisions regarding the custody of the Consolidated Fund of India or the Contingency Fund of India.
❌ Statement 3 – Incorrect: Appropriation of money from the Contingency Fund is not governed by a Money Bill; it is under the President's disposal and later regularized through an Appropriation Bill.
✅ Statement 4 – Correct: Article 110(1)(d) states that provisions regarding borrowing of money or giving of guarantees by the Government of India fall within the scope of a Money Bill.
📝 Short Notes: Money Bill (Article 110)
| Aspect | Details |
|---|---|
| Constitutional Provision | Article 110 of the Indian Constitution defines Money Bills |
| Scope (Article 110(1)) | (a) Imposition, abolition, remission, alteration, or regulation of any tax (b) Regulation of borrowing of money or giving of guarantees by Government of India (c) Custody of Consolidated Fund/Contingency Fund of India (d) Appropriation of moneys out of Consolidated Fund of India (e) Declaration of expenditure as charged on Consolidated Fund (f) Receipt of money on account of Consolidated Fund/Public Account (g) Any matter incidental to these matters |
| Certification | Speaker of Lok Sabha certifies whether a bill is a Money Bill or not (final and conclusive) |
| Introduction | Can only be introduced in Lok Sabha (not in Rajya Sabha) |
| Rajya Sabha's Role | Can only make recommendations within 14 days; Lok Sabha may accept or reject them |
| President's Assent | Required, but President cannot withhold assent (unlike ordinary bills) |
| Contingency Fund | Established under Article 267; at President's disposal for unforeseen expenditure; withdrawals regularized later by Appropriation Bill (not Money Bill) |
Question 4 of 7 Budget and Financial Procedures
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