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

Table of Contents
1. Exclusive Powers of the Rajya Sabha
2. Powers of Both Houses Compared
3. Legislative Procedure
4. Money Bill
5. Financial Bill
6. Joint Sitting of Parliament
7. Financial Legislation in India
8. Appropriation Bill
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Exclusive Powers of the Rajya Sabha

State subjects (Article 249): The Rajya Sabha may, by a resolution supported by not less than two-thirds of the members present and voting, authorise Parliament to make laws on any matter in the State List if it is necessary or expedient in the national interest. Such a resolution empowers Parliament to legislate on a State List subject even during normal times. The authorisation remains in force for one year from the date of the resolution but may be renewed by further resolutions.

• All-India Services (Article 312): The Rajya Sabha can pass a resolution by a two-thirds majority to create an All-India Service. Once the resolution is passed, Parliament may make laws for the creation and regulation of such a service.
• Proclamation of Emergency: Where the Lok Sabha stands dissolved at the time a proclamation of emergency is made, the approval of the Rajya Sabha becomes necessary for the proclamation. The Rajya Sabha thereby acts as a democratic check when the Lok Sabha is not in session or is dissolved.
• Removal of the Vice-President (Article 67): The Rajya Sabha has the exclusive right to initiate the process for the removal of the Vice-President. If the Rajya Sabha passes the resolution for removal in the prescribed manner, the proposal is sent to the Lok Sabha for concurrence.

Powers of Both Houses Compared

The two Houses of Parliament-Lok Sabha (House of the People) and Rajya Sabha (Council of States)-share many powers but they are not identical in all respects. The Constitution gives special primacy to the Lok Sabha in certain financial matters.

• Money bills: The Lok Sabha has predominance. A Money Bill can be introduced only in the Lok Sabha and the Rajya Sabha cannot reject or amend it; it may only make recommendations.
• Ordinary (non-money) bills: For ordinary bills both Houses have similar legislative powers. A bill must be passed by both Houses. Where disagreement arises, the Constitution provides for a joint sitting to resolve the deadlock, though in practice the numerical strength of the Lok Sabha gives it an advantage at joint sittings.
• Shared constitutional functions: Both Houses participate in key constitutional processes such as removal/impeachment of high constitutional office-holders (President, judges in certain cases) and certain elections; both Houses must pass constitutional amendment bills separately with the special majorities required under Article 368.

Legislative Procedure

The passage of legislation in Parliament follows different procedures depending on the class of the bill. The main categories are ordinary bills and money/financial bills. The general stages for ordinary legislation are described below.

Ordinary Bill

• An ordinary bill (any bill other than a Money Bill or a Constitution Amendment Bill) may be introduced in either House of Parliament (Article 107).
• Introduction of a bill is commonly referred to as its first reading. Publication in the official gazette follows introduction unless the bill has already been published.
• Bills can be introduced by a Minister or by a private member. A private member must give prior notice of the intention to introduce the bill and seek permission of the House.

Motions and options after introduction:

• After introduction the House may decide to consider the bill forthwith, refer it to a Select Committee of the House or to a Joint Committee of both Houses, or circulate it for public opinion and stakeholders' comments.
• At the initial stage only general principles and objectives of the bill may be discussed; detailed clause-by-clause scrutiny is normally reserved for the committee stage or the clause-wise consideration stage in the House.

Committee examination:

• If referred, a Select Committee (or Joint Committee) examines the bill clause by clause and may gather evidence, call witnesses, and seek expert advice.
• The Committee may propose amendments and, after completion of its work, submits a report recommending adoption, amendment or rejection of clauses or the entire bill.

Consideration and voting in the House:

• On receipt of the Committee's report the bill is taken up for detailed consideration. Each clause is put to the vote and amendments may be moved and decided.
• The conclusion of clause-wise examination is described as the second reading.
• The third reading is the final stage: the House votes on the bill as a whole, including all accepted amendments, the enacting formula/preamble (if any) and the title. A motion for passing the bill is put and, if carried, the bill is passed by that House.
• After passage by one House the bill is transmitted to the other House for its concurrence. The second House may pass the bill as presented, pass it with amendments, or reject it.
• If the second House returns the bill with amendments the originating House may accept or reject those amendments. Persistent deadlock (excluding Money Bills and Constitution Amendment Bills) can be resolved by a joint sitting under Article 108.

Presidential assent:

• Once a bill is passed by both Houses it is submitted to the President for assent. On receiving the President's assent the bill becomes an Act of Parliament.
• For ordinary bills the President may assent, withhold assent, or return the bill (if it is not a Money Bill) with recommendations. If both Houses pass the bill again, with or without amendments, the President is required to give assent.

Money Bill

A bill is classified as a Money Bill under Article 110 of the Constitution if it deals exclusively with matters specified there. The subjects listed in Article 110 include:

• Taxation: Imposition, abolition, remission, alteration or regulation of any tax.
• Government borrowing: Regulation of borrowing of money by the Government.
• Fund custody: Custody of the Consolidated Fund of India or the Contingency Fund of India, and payments into or withdrawals from these funds.
• Appropriation: Appropriation of moneys out of the Consolidated Fund of India.
• Charged expenditure: Declaring any expenditure to be charged on the Consolidated Fund of India, or increasing the amount of such expenditure.
• Receipt and audit: 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 foregoing.

Speaker's authority on classification:

• Where a question arises whether a bill is a Money Bill, the decision of the Speaker of the Lok Sabha is final. The Speaker certifies the bill as a Money Bill and that certificate is conclusive for all purposes; it cannot be challenged in a court of law.

Procedure for Passing Money Bills

• Introduction: A Money Bill must be introduced in the House of the People (Lok Sabha) only, on the recommendation of the President.
• Transmission to Rajya Sabha: After the Lok Sabha passes a Money Bill the Speaker endorses it with a certificate and the bill is transmitted to the Rajya Sabha.
• Rajya Sabha's role: The Rajya Sabha may suggest recommendations but cannot amend or reject a Money Bill. It must return the bill within 14 days with any recommendations it wishes to make.
• Lok Sabha's choice: The Lok Sabha may accept or reject any or all recommendations of the Rajya Sabha. If the Lok Sabha does not accept the recommendations the bill is deemed to have been passed in the form originally passed by the Lok Sabha.
• Deemed passage: If the Rajya Sabha does not return the Money Bill within 14 days, it is deemed to have been passed by both Houses in the form passed by the Lok Sabha.
• Presidential assent: On passage by the House(s), the bill is presented to the President for assent; a Money Bill requires the President's assent to become law.

Financial Bill

The term Financial Bill is used in practice to refer to bills that deal with the revenues and expenditures of the Government. Constitutionally, such bills are distinguished into classes to clarify procedure and powers of the Houses.

Types of Financial Bills

• Money Bills: Those bills which fall strictly within Article 110 are Money Bills. They enjoy special procedure and limited Rajya Sabha powers.
• Financial Bills of the First Class: These bills include provisions relating to matters in Article 110 but also contain other provisions not strictly confined to Article 110. They require the President's recommendation for introduction or consideration, and they follow the ordinary legislative procedure; the Rajya Sabha may amend or reject such bills, and in case of deadlock a joint sitting may be summoned.
• Financial Bills of the Second Class: These are ordinary bills which involve expenditure of moneys from the Consolidated Fund of India but do not contain the specific matters enumerated in Article 110. Such bills require the President's recommendation before they are considered by either House.

Comparison of Classes

• Money Bill: Must be introduced in the Lok Sabha; Rajya Sabha may only recommend; joint sitting procedure does not apply.
• Financial Bill (First Class): Contains matters mentioned in Article 110 as well as other provisions; requires President's recommendation; Rajya Sabha has greater powers than in the case of Money Bills and its amendments may lead to negotiation or a joint sitting.
• Ordinary Bill involving expenditure (Second Class): Is treated as an ordinary bill but the President's recommendation is required for consideration because it involves withdrawal from the Consolidated Fund of India; both Houses have their normal powers in respect of passage and amendment.

Joint Sitting of Parliament

Where a deadlock arises between the two Houses over non-Money Bills, the Constitution provides for a joint sitting under Article 108. The salient features are:

• A joint sitting may be summoned by the President if: the Bill has been rejected by the other House; the Houses have disagreed on the amendments to be made; or more than six months have elapsed since the Bill was referred to the other House without its being passed.
• A joint sitting cannot be called for a Money Bill. A joint sitting also cannot be used to pass a Constitution Amendment Bill, which must be passed separately by each House with the special majority required under Article 368.
• The joint sitting is presided over by the Speaker of the Lok Sabha. If the Speaker is absent, the person to preside is appointed as per the Rules of Procedure of Parliament.
• There are restrictions on amendments at a joint sitting depending on the nature of the disagreement: where the other House has rejected the Bill or has not returned it, only amendments necessary because of the delay may be moved; where the other House has proposed amendments, other relevant amendments may also be allowed.
• A Bill is deemed passed if it is adopted by a majority of the total members present and voting in the joint sitting; such passage is treated as passage by both Houses.

Financial Legislation in India

Annual financial statement (Budget) - Article 112: At the beginning of each financial year the President causes to be laid before both Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, known as the annual financial statement or the Union Budget. The estimates of expenditure in the Budget are classified as follows:

1. Expenditure charged on the Consolidated Fund of India: These are sums which the Constitution specifies must be charged on the Consolidated Fund and which are not subject to vote in Parliament; however, both Houses may discuss them.
2. Other expenditure (voted expenditure): These are demands for grants presented to the Lok Sabha. The Lok Sabha votes on these demands and may assent, refuse, or reduce the amounts. No demand for a grant can be made without the recommendation of the President.

After the Budget is presented, both Houses may take part in a general discussion of the annual financial statement; however, detailed voting on demands for grants is the exclusive responsibility of the Lok Sabha. Once the Lok Sabha passes the demands for grants, the amounts approved (together with expenditure charged on the Consolidated Fund) are provided for by passing the Appropriation Bill. Tax proposals in the Budget are normally included in the Annual Finance Bill. Both the Appropriation Bill and the Annual Finance Bill are treated as Money Bills and follow the special procedure laid down for Money Bills.

Appropriation Bill

An Appropriation Bill authorises withdrawal of specified sums from the Consolidated Fund of India for expenditure approved by Parliament.

• After the Lok Sabha votes the demands for grants, the government introduces an Appropriation Bill to appropriate the amounts authorised by the demands and to provide for expenditure charged on the Consolidated Fund of India.
• The Appropriation Bill is treated as a Money Bill (Article 114). Under the Money Bill procedure no amendments may be moved in either House which would change the amount or the purpose of any grant or alter the amount of any expenditure charged on the Consolidated Fund.
• Only after the Appropriation Act is in place may money be withdrawn from the Consolidated Fund of India for the purposes authorised in the Act.