Union Legislature - 2 | Indian Polity for UPSC CSE PDF Download

Exclusive Powers of the Rajya Sabha

State Subject: According to Article 249 of the Constitution, the Rajya Sabha has the authority to pass a resolution by a two-thirds majority, allowing Parliament to make laws on subjects listed in the State List when necessary in the national interest. This resolution enables Parliament to legislate on State List subjects even during normal circumstances. However, the resolution is valid for one year and can be renewed repeatedly.

• All-India Services: Under Article 312, the Rajya Sabha can establish an all-India service by passing a resolution with a two-thirds majority. If such a resolution is passed, Parliament is empowered to make laws for the creation of this service.
• Proclamation of Emergency: In the event that the Lok Sabha is dissolved at the time of proclaiming an emergency, the Rajya Sabha's approval is required for the proclamation. Additionally, the Rajya Sabha has the authority to impose a democratic check on the emergency powers exercised by the President.
• Removal of Vice-President: As per Article 67, the Rajya Sabha has the exclusive power to initiate the process of removing the Vice-President of India. The resolution for removal is sent to the Lok Sabha for approval only if it is passed by a majority in the Rajya Sabha.

Powers of both the Houses Compared:

• The powers of the two Houses of Parliament are not equal. In the case of money bills, the Lok Sabha has the final say. However, for non-money bills, both Houses have equal powers. Every non-money bill must be approved by both Houses, meaning the Lok Sabha cannot disregard the Rajya Sabha in this process. When there are disagreements between the two Houses, they are resolved through joint sittings. However, the Lok Sabha's decision prevails due to its larger numerical strength compared to the Rajya Sabha.
• There are also powers that are shared by both Houses, such as in the election and impeachment of the President of India, the election and removal of the Vice President, and constitutional amendments.

Legislative Procedure:

• The legislative procedure in Parliament varies for ordinary bills and money bills.

Ordinary Bill

• Ordinary bills, excluding Money or Financial Bills, can be introduced in either House of Parliament as per Article 107 of the Constitution.
• These bills must pass through both Houses before being presented for the President's assent.
• Bills can be introduced by a Minister or a private member. If a private member introduces the bill, they need to notify their intention and seek permission from the House, a process that is rarely opposed.
• Unless published earlier, bills are published in the official gazette shortly after their introduction.
• The act of introducing a bill is referred to as its first reading.

Motions After Introduction:

• Once a bill is introduced, the House has three options:
• Consideration: Take up the bill for further consideration.
• Committee Referral: Refer the bill to a Select Committee of the House or a Joint Committee comprising members from both Houses.
• Circulation: Circulate the bill to elicit opinions on it.
• At this stage, the general principles and provisions of the bill can be discussed, but detailed discussions on specifics are not permitted.

Referred to Select Committee:

• If a motion for circulation is adopted and the bill is circulated, the next step is to refer it to a Select or Joint Committee.
• This Committee examines the bill clause by clause, similar to how the two Houses of Parliament do.
• Committee members can propose amendments to various clauses.
• After thorough consideration, the Committee submits its report to the House members.

Consideration by the House:

• Upon receiving the Committee's report, the bill, as amended by the Committee, is presented for consideration by the House.
• Each clause of the bill is examined and put to a vote.
• During this stage, amendments can be proposed by the members.
• The presiding officer has the authority to decide which amendments can be moved, although this power is not always exercised.
• Once all clauses have been considered and voted on, the second reading of the bill concludes.
• The final or third reading stage occurs after all clauses (including amendments), schedules (if any), the enacting formula or preamble (if any), and the title of the bill have been put to a vote and agreed upon by the House.
• The third reading essentially signifies a motion for the bill's passage.
• After a bill is considered and passed by one House, it is sent to the other House for its concurrence, where it undergoes a similar procedure.
• The second House may either agree to the bill as is or return it with amendments for consideration.
• If the Rajya Sabha returns a bill with amendments to the Lok Sabha and the Lok Sabha agrees to these amendments, the bill is passed as amended, and a message to this effect is sent to the Rajya Sabha.
• In cases of disagreement between the two Houses on a bill (excluding Money Bills and Constitution Amendment Bills), the Constitution provides for a joint sitting of both Houses to decide the fate of the bill.

Presidential Assent:

• Once a bill has been passed by both Houses of Parliament, it is submitted to the President for approval.
• Upon receiving the President's assent, the bill becomes an Act of Parliament.
• In the case of a Money Bill, the President's assent is mandatory. However, for other types of bills, the President has the option to withhold assent and return the bill with recommendations.
• If both Houses pass the bill again, with or without amendments, the President is obliged to give his assent.

Money Bill

• Taxation: Imposition, abolition, remission, alteration, or regulation of any tax.
• Government Borrowing: Regulation of borrowing money by the Government.
• Fund Custody: The custody of the Consolidated Fund or the Contingency Fund of India, and the payment of moneys into or the withdrawal of moneys from these funds.
• Money Appropriation: Appropriation of moneys out of the Consolidated Fund of India.
• Expenditure Declaration: Declaring any expenditure to be charged on the Consolidated Fund of India or increasing the amount of such expenditure.
• Receipt and Audit of Money: Receipt of money on account of the Consolidated Fund of India or the public account of India, custody or issue of such money, or audit of the accounts of the Union or of a State.
• Incidental Matters: Any matter incidental to the above-mentioned points.

Speaker's Authority on Money Bills:

• When there is a dispute regarding whether a Bill qualifies as a Money Bill, the decision made by the Speaker of the House of the People (Lok Sabha) is considered final. This means that once the Speaker certifies a Bill as a Money Bill, this classification cannot be challenged in a court of law, in either House of Parliament, or by the President of India.

Procedure for Passing Money Bills

Introduction in the House of the People:

• A Money Bill cannot be introduced in the Council of States (Rajya Sabha). It must be introduced in the House of the People (Lok Sabha).

Transmission to the Council of States:

• After the House of the People passes the Money Bill, it is sent to the Council of States along with the Speaker’s certificate confirming it as a Money Bill.

Role of the Council of States:

• The Council of States cannot reject or amend the Money Bill. It can only make recommendations.
• The Council of States has 14 days to return the Bill to the House of the People with its recommendations.

House of the People’s Decision:

• If the House of the People accepts any of the Council of States' recommendations, the Money Bill is considered passed by both Houses with the accepted amendments.
• If the House of the People does not accept any recommendations, the Money Bill is deemed passed in the form it was originally passed by the House of the People.

Time Limit for Council of States:

If the Council of States does not return the Money Bill within 14 days, it is considered passed by both Houses in the form it was passed by the House of the People.

Financial Bill

Financial Bills and Their Classes

A Financial Bill is any bill related to revenue or expenditure. However, in a technical sense, this term has a specific meaning in the Constitution.

Types of Financial Bills

• Money Bills: Only those Financial Bills that receive the certificate from the Speaker of the House of the People are considered Money Bills. The Speaker's decision on whether a bill falls under Article 110 is final and cannot be questioned.
• Financial Bills of the First Class: These bills contain matters specified in Article 110 but also include other provisions. For example, a bill that has a taxation clause but is not solely about taxation.
• Financial Bills of the Second Class: Any ordinary bill that includes provisions involving expenditure from the Consolidated Fund falls into this category.

Comparison of Different Classes of Bills

• Money Bill: A Money Bill cannot be introduced in the Council of States and can only be introduced with the President's recommendation. The Council of States cannot amend or reject a Money Bill; it can only suggest amendments.
• Financial Bill of the First Class: A Financial Bill of the first class shares similarities with a Money Bill, such as not being introducible in the Council of States and requiring the President's recommendation. However, the Council of States has the power to reject or amend this Financial Bill, unlike a Money Bill. The Council of States must pass this Bill through three readings, and in case of disagreement between the two Houses, a joint sitting is called.
• Money Bills are exempt from the provisions related to a joint sitting.
• Ordinary Bill Involving Expenditure: A Bill that involves expenditure but does not include matters specified in Article 110 is an ordinary Bill. It can be initiated in either House, and the Council of States has full power to reject or amend it. However, it must not be passed in either House without the President's recommendation. Unlike Money Bills and Financial Bills of the first class, the President's recommendation is not required for its introduction but must be obtained before consideration. Other than this requirement, a Bill involving expenditure follows the same procedure as an ordinary Bill, including provisions for a joint sitting in case of disagreement between the two Houses.

Joint Sitting of Parliament

When there is a deadlock between the two Houses of Parliament regarding a Bill, the Constitution provides a mechanism for resolving the disagreement through a joint sitting of both Houses.

Money Bills:

• In the case of Money Bills, the House of the People (Lok Sabha) has the final authority to pass the Bill. The Council of States (Rajya Sabha) can only make recommendations for amendments.
• If there is a disagreement over a Money Bill, the House of the People can override the Council of States.

Other Bills (Including Financial Bills):

• For all other Bills, including Financial Bills, a joint sitting is convened to resolve the disagreement between the two Houses.
• The President can notify the intention to summon both Houses for a joint sitting in case of disagreement if:

1. The Bill is rejected by the other House.
2. The Houses have disagreed on the amendments to be made to the Bill.
3. More than six months have passed since the Bill was received by the other House without it being passed.

A joint sitting cannot be called if the Bill has lapsed due to the dissolution of the House of the People. However, once the President notifies the intention to hold a joint sitting, the subsequent dissolution of the House of the People does not prevent the joint sitting from taking place.

The joint sitting is presided over by the Speaker of the House of the People. If the Speaker is absent, a person determined by the Rules of Procedure made by the President (in consultation with the Chairman of the Council of States and the Speaker of the House of the People) will preside.

There are restrictions on the amendments that can be proposed at the joint sitting:

• If the Bill has been rejected or not returned by the other House after its passage in one House, only amendments necessary due to the delay in passage can be proposed.
• If the deadlock is due to amendments proposed by the other House, both amendments necessary due to the delay and other relevant amendments can be proposed.

If the Bill, with any agreed amendments, is passed by a majority of the total members present and voting in the joint sitting, it is considered passed by both Houses.

It is important to note that the procedure for a joint sitting, as outlined in Article 108, applies only to ordinary legislation and does not extend to constitutional amendment Bills, which are governed by Article 368(2) and must be passed separately by each House with the special majority specified.

Financial Legislation in India

According to Article 112 of the Indian Constitution, at the start of each financial year, the President is required to present a statement of the estimated receipts and expenditure of the Government of India for that year. This statement is known as the "annual financial statement" or the "Budget." The annual financial statement outlines the government's estimated income and spending and details how the government plans to meet its expenditure.

The estimates of expenditure in the annual financial statement are divided into two categories:

1. Expenditure Charged on the Consolidated Fund of India: This includes sums required to meet expenditure that the Constitution specifies as charged upon the Consolidated Fund of India. These estimates are not subject to a vote in Parliament, although each House can discuss these estimates.
2. Other Expenditure: This category includes sums required for other expenditure proposed to be made from the Consolidated Fund of India. These estimates are submitted in the form of demands for grants to the House of the People (Lok Sabha). The House of the People has the authority to assent, refuse to assent, or assent to a demand with a reduction in the specified amount. No demand for a grant can be made without the recommendation of the President.

After the annual financial statement is presented, both Houses of Parliament engage in a general discussion of the statement. At this stage, no motion is moved, and the Budget is not put to a vote. The Council of States (Rajya Sabha) has no further involvement with the annual financial statement beyond this general discussion.

The voting on the grants, which are the demands for expenditure made by the government, is the exclusive responsibility of the House of the People. After the general discussion, estimates are submitted in the form of demands for grants on specific heads, and the House votes on each of these heads.

Once the grants are approved by the House of the People, they, along with the expenditure charged on the Consolidated Fund of India, are incorporated into an Appropriation Bill. The Appropriation Bill provides the legal authority for withdrawing these sums from the Consolidated Fund of India.

Similarly, the taxing proposals outlined in the budget are included in another Bill known as the Annual Finance Bill. Both the Appropriation Bill and the Annual Finance Bill are classified as Money Bills, and therefore, the special procedure pertaining to Money Bills must be followed for their passage.

Appropriation Bill 

Money can only be withdrawn from the Consolidated Fund with the approval of an Appropriation Act. Here's how the process works:

• Once the House of the People (Lok Sabha) votes on the demands for grants, a Bill is introduced.
• This Bill aims to authorize the appropriation of funds from the Consolidated Fund of India to cover:
• (i) The grants approved by the House of the People.
• (ii) The expenditure that is charged on the Consolidated Fund of India.

Passage as a Money Bill:

The Appropriation Bill is treated as a Money Bill. This means:

• No amendments can be proposed in either House of Parliament that would:
• Change the amount or the purpose of any grant approved by the House of the People.
• Alter the amount of any expenditure charged on the Consolidated Fund.

Constitutional Reference:

This process is outlined in Article 114 of the Constitution of India.