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Consider the following statements regarding the Money Bill:
  1. It can only be introduced in Lok Sabha.
  2. It must be passed by a special majority in the Parliament.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the Money Bill: It can onl...
The Lok Sabha recently passed the Finance Bill 2023 giving effect to tax proposals.
About Finance Bill:
  • Financial Bills are also called "Act for Appropriation of Funds for Appropriations".
  • Financial bills are responsible for fiscal matters such as government spending or revenue.
  • Financial bills are a component of the union budget. The Indian Constitution's Article 110(a) requires that a finance bill be presented together with the budget.
  • It proposes all the necessary legal changes required for the proposed tax adjustments.
  • When a question arises about whether a Finance bill is a money bill or not, the speaker of the house decides on the matter, and his decision shall be final in this regard.
What is a Money Bill?
  • Under Article 110(1), a Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government, and expenditure from or receipt to the Consolidated Fund of India.
  • Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.
  • Who decides if a Bill is a Money Bill? The Speaker certifies a Bill as a Money Bill, and the Speaker’s decision is final.
  • Passage of Money Bills:
  • A Money Bill may only be introduced in Lok Sabha on the recommendation of the President.
  • It must be passed in Lok Sabha by a simple majority of all members present and voting.
  • Following this, it may be sent to the Rajya Sabha for its recommendations, which Lok Sabha may reject if it chooses to. If such recommendations are not given within 14 days, it will be deemed to be passed by Parliament.
Hence only statement 1 is correct.
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Consider the following statements regarding the Money Bill: It can only be introduced in Lok Sabha. It must be passed by a special majority in the Parliament.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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