WHAT IS MONEY BILL? WHAT IS THE LEGISLATIVE PROCEDURE FOR ITs INTRODUCTION IN THE PARLIAMENT?

WHAT IS MONEY BILL? WHAT IS THE LEGISLATIVE PROCEDURE FOR ITs INTRODUCTION IN THE PARLIAMENT?

By K P C Rao.,

 LL.B., FCS., FICWA.

Practicing Company Secretary

kpcrao.india@gmail.com

1.      WHAT IS MONEY BILL?

In the Westminster system (and, colloquially, in the United States), a money bill or supply bill is a bill that solely concerns taxation or government spending (also known as appropriation of money), as opposed to changes in public law.

Article 110 (1) of the Indian Costitution defines that a Money Bill is a Bill which contains only provisions with respect to all or any of the specified matters.

2.      DEFINITION OF “MONEY BILLS” (ARTICLE 110)

    (1)  For the purposes of this  Chapter [Chapter V], a Bill shall be deemed to be a Money Bill if it contains only provisions  dealing with all or any of the following matters, namely:—

(a)  the imposition, abolition, remission, alteration or regulation of  any tax;

(b)  the regulation of the borrowing of money or the giving of any  guarantee by the Government of India, or the amendment of the law with  respect to any financial obligations undertaken or to be undertaken by  the Government of India;

(c)  the custody of the Consolidated Fund or the Contingency Fund of  India, the payment of moneys into or the withdrawal of moneys from any  such Fund;

(d)  the appropriation of moneys out of the Consolidated Fund of  India;

(e)  the declaring of any expenditure to be expenditure charged on the  Consolidated Fund of India or the increasing of the amount of any such  expenditure;

(f)   the receipt of money on account of the Consolidated Fund of India  or the public account of India or the custody or issue of such money or  the audit of the accounts of the Union or of a State; or

(g)  any matter incidental to any of the matters specified in sub-clauses (a) to (f).

    (2)  A Bill shall not be deemed to be a Money Bill by reason only that it  provides for the imposition of fines or other pecuniary penalties, or for the  demand or payment of fees for licences or fees for services rendered, or by  reason that it provides for the imposition, abolition, remission, alteration or  regulation of any tax by any local authority or body for local purposes.

    (3)  If any question arises whether a Bill is a Money Bill or not, the  decision of the Speaker of the House of the People thereon shall be final.

    (4)  There shall be endorsed on every Money Bill when it is transmitted  to the Council of States under article 109, and when it is presented to the  President for assent under article 111, the certificate of the Speaker of the  House of the People signed by him that it is a Money Bill.

3.      DISTINCTION BETWEEN MONEY BILLS, FINANCIAL BILLS AND BILLS INVOLVING EXPENDITURES 

A Money Bill is a Bill which contains only matters mentioned Article 110 (1).  A Financial Bill, apart from dealing with one or more of the matters mentioned in Article 110(1) deals with other matters also. Thus a Financial Bill is a Money Bill to which provisions of general legislations are also added apart from one or more matters of Article 110 (1). Thus, all Money Bills are financial Bills but all financial bills are not Money Bills.

4.      LEGISLATIVE PROCEDURE [ARTICLE 107]

      (a)  Provisions as to introduction and passing of Bills (Article 107)

(1)  Subject to the provisions of articles 109 and 117 with respect to Money Bills and other financial Bills, a Bill may originate in either House of Parliament.

(2)  Subject to the provisions of articles 108 and 109, a Bill shall not be deemed to have been passed by the Houses of Parliament unless it has been  agreed to by both Houses, either without amendment or with such amendments  only as are agreed to by both Houses.

(3)  A Bill pending in Parliament shall not lapse by reason of the   prorogation of the Houses.

(4)  A Bill pending in the Council of States which has not been passed by   the House of the People shall not lapse on a dissolution of the House of the People.

(5)  A Bill which is pending in the House of the People, or which having  been passed by the House of the People is pending in the Council of States,  shall, subject to the provisions of article 108, lapse on a dissolution of the  House of the People.

     (b)  Special procedure in respect of Money Bills (Article 109)

(1)  A Money Bill shall not be introduced in the Council of States.

(2)  After a Money Bill has been passed by the House of the People it shall be transmitted to the Council of States for its recommendations and the Council of States shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the House of the People with its  recommendations and the House of the People may thereupon either accept or  reject all or any of the recommendations of the Council of States.

(3)  If the House of the People accepts any of the recommendations of the   Council of States, the Money Bill shall be deemed to have been passed by both Houses with the amendments recommended by the Council of States and accepted by the House of the People.

(4)  If the House of the People does not accept any of the recommendations of the Council of States, the Money Bill shall be deemed to have been passed by both Houses in the form in which it was passed by the House of the People without any of the amendments recommended by the Council of States.

(5)  If a Money Bill passed by the House of the People and transmitted to the Council of States for its recommendations is not returned to the House of the People within the said period of fourteen days, it shall be deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by the House of the People.

5.      CONCLUSION

In the light of the aforesaid discussion, the proposed Andhra Pradesh Reorganisation Bill, 2013 is a Money Bill with in the meaning of Article 110 of the Constitution of India, as it containes the provision dealing with the matters specified in sub-clauses (a) to (f) of the Article 110 and more particularly concerned with (i) the appropriation of moneys out of the Consolidated Fund of  India; and (ii) the declaring of any expenditure to be expenditure charged on the  Consolidated Fund of India or the increasing of the amount of any such  expenditure i.e.,

Andhra Pradesh Reorganisation Bill, 2013  

Certain expenditure to be charged on Consolidated Fund (clause 67) “All sums payable by the State of Andhra Pradesh or by the State of Telangana, as the case may be, to the other State, or by the Central Government to the successor States, by virtue of the provisions of this Act, shall be charged on the Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated Fund of India.” is attracting the provisions of Article 110 of the Constitution of India.

Contrary to the specific provisions under Article 109(1) of the Constitution of India, the Center has initially announced to introduce the Bill in the Council of States (Rajya Sabha).This has created a lot of controvesy within the UPA and from the opposition. Thereafter, the Center (Home Ministry) has changed its stand and introduced the Andhra Pradesh Reorganisation Bill, 2014 in the House of the People (Lok Sabha) on February 13, 2014. The Bill was passed by the Lok Sabha on Feb 18, 2014 and by Rajya Sabha on Feb 20, 2014. The Bill is published in the official Gazette after the   assent of the President of India, Pranab Mukherjee on 1 March 2014 and became Andhra Pradesh Reorganisation Act, 2014 paving the way for creation of the country's 29th state by splitting Andhra Pradesh.  Appointed day of the New State is notified as 2nd June, 2014. 

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[Published in 'Circuit', monthly journal of ICAI, Hyderabad during  March, 2014]