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?

QUESTION

Hard

Indian Polity

Prelims 2023

With reference to Finance Bill and Money Bill in the Indian Parliament consider the following statements:

When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
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?

Select an option to attempt

Explanation

The Finance Bill is a part of the Union Budget, stipulating all the legal amendments required for the changes in taxation proposed by the finance minister. As per Article 110 of the Constitution of India, the Finance Bill is a Money Bill.
Statement 1 is correct: Though the finance bill shares certain similarities with the money bill, it can be rejected or amended by the Rajya Sabha.
Statement 2 is correct: It is true that Money bills cannot be amended or rejected by the Rajya Sabha. The Rajya Sabha should return the bill with or without recommendations, which may be accepted or rejected by the Lok Sabha
Statement 3 is incorrect: In case of disagreements, a joint sitting may be summoned by the President (becomes necessary is incorrect).