CONSTITUTIONAL PROVISIONS

• Article 110(1)(a) to (f): Defines a money Bill as a bill containing only provisions dealing with:
  • Taxation
  • Borrowing by the government
  • Custody of the consolidated fund or contingency fund and payment/withdrawal of money from such fund
  • Appropriation out of the consolidated fund
  • Expenditure charged on the consolidated fund
  • Receipt on account of the consolidated fund or public account or audit of accounts of the Union or States
• Article 110(1)(g): Includes any matter incidental to the above six matters.

Examples of Money Bills

• Finance Act
• Appropriation Act

Financial Bills

• Category I (Article 117): Contains any of the six matters mentioned in Article 110(1)(a) to (f) along with other matters.
• Category II (Article 117): Involves expenditures from the consolidated fund but does not contain any of the six matters.

PROCEDURE FOR A MONEY BILL

Introduction and Passage

• Introduction: Only in the Lok Sabha as per Article 109.
• Rajya Sabha Role: Can only provide recommendations within 14 days, which may or may not be accepted by the Lok Sabha.

Historical Context

• UK Influence: Originated in the UK where the 1911 Parliament Act curtailed the powers of the House of Lords over the Budget, making it passable only by the House of Commons.

Certification

• Role of Speaker: The Speaker of Lok Sabha certifies a Bill as a money Bill.

ISSUES AND JUDICIAL REVIEW

Aadhaar Act (2016)

• Contentious Certification: The Aadhaar Act was passed as a money Bill due to Section 7, which involved expenditure from the consolidated fund.
• Supreme Court Verdict: Upheld the classification with a majority of 4:1, but with a dissenting opinion from the current Chief Justice of India.

Finance Act (2017)

• Controversial Amendments: Passed as a money Bill, including amendments for tribunal reorganization.
• Rojer Mathew vs. South Indian Bank (2019): Five-judge Bench struck down these amendments and called for a larger Bench to authoritatively define money Bills.

RECOMMENDATIONS

• Judicial Clarification: Need for a seven-judge Bench for an authoritative judgment on money Bills.
• Speaker’s Role: Importance of upholding the spirit of the definition while certifying a money Bill.

CONCLUSION

• Special Procedure Justification: Money Bills require special procedures due to their crucial role in financial governance and administration.
• Way Forward: Ensuring precise and transparent certification of money Bills, along with judicial clarity, to maintain the integrity of legislative processes.