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Article 109 of the Indian Constitution: Special procedure in respect of Money Bills

Part: V
Shorthand Notes: Money Bill - RS no power, 14 days recommend only, LS discretion

Article 109 of the Indian Constitution outlines the special procedure that must be followed for the passage of Money Bills. This article is crucial in defining the relationship between the two Houses of Parliament concerning financial legislation, placing specific restrictions on the power of the Rajya Sabha (Council of States) and vesting primary authority in the Lok Sabha (House of the People).

This special procedure ensures the timely passage of essential financial legislation like the Union Budget and taxation proposals, reflecting the principle that financial control should primarily rest with the directly elected representatives of the people in the Lok Sabha.

Original Text

Article 109. Special procedure in respect of Money Bills

(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.

(3) 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.

(4) 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.

(5) 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.

(6) 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.

Detailed Explanation

Article 109 lays down a specific process that Money Bills must follow, significantly different from the procedure for ordinary bills.

Clause (1): This clause unequivocally states that a Money Bill cannot be introduced in the Rajya Sabha. Introduction is the first stage of a bill’s journey in Parliament. This restriction means that all Money Bills must originate only in the Lok Sabha. This reflects the constitutional position that the power of the purse lies with the Lok Sabha, which is directly accountable to the electorate.

Clause (2): Once the Lok Sabha has passed a Money Bill, it is mandatory for the bill to be sent to the Rajya Sabha. While the Rajya Sabha cannot initiate or substantially amend a Money Bill, it is given an opportunity to review it and provide input.

Clause (3): This is a critical clause outlining the limited power of the Rajya Sabha regarding Money Bills.

  • The Rajya Sabha must return the Money Bill to the Lok Sabha within a strict time limit of fourteen days from the date it receives the bill.
  • The Rajya Sabha can only make recommendations regarding the bill; it cannot make amendments that are binding on the Lok Sabha.
  • Upon receiving the bill back with recommendations, the Lok Sabha has the absolute discretion to either accept or reject all or any of these recommendations.

Clause (4): If the Lok Sabha decides to accept any of the recommendations made by the Rajya Sabha, the Money Bill is then considered to have been passed by both Houses of Parliament. In this case, the final version of the bill includes the changes recommended by the Rajya Sabha and accepted by the Lok Sabha.

Clause (5): This clause deals with the scenario where the Lok Sabha chooses not to accept any of the recommendations made by the Rajya Sabha. In this instance, the Money Bill is deemed to have been passed by both Houses in the original form in which it was passed by the Lok Sabha, completely disregarding the Rajya Sabha’s recommendations.

Clause (6): This clause imposes a severe limitation on the Rajya Sabha’s ability to delay a Money Bill. If the Rajya Sabha fails to return the Money Bill to the Lok Sabha within the stipulated fourteen-day period, the bill is automatically deemed to have been passed by both Houses of Parliament at the expiry of those fourteen days. Crucially, it is deemed passed in the form in which it was originally passed by the Lok Sabha. This effectively prevents the Rajya Sabha from blocking or indefinitely delaying a Money Bill.

This entire procedure, as laid out in Article 109, underscores the pre-eminence of the Lok Sabha in matters of finance, aligning with the principle of responsible government where the executive is accountable to the lower house which controls government expenditure and revenue.

Detailed Notes

  • Introduction Restriction: A Money Bill shall not be introduced in the Council of States (Rajya Sabha). (Article 109(1)).
  • Exclusive Introduction: Money Bills must originate only in the House of the People (Lok Sabha).
  • Transmission: After being passed by the Lok Sabha, a Money Bill is transmitted to the Rajya Sabha for recommendations. (Article 109(2)).
  • Time Limit for RS: The Rajya Sabha must return the Money Bill within fourteen days of receipt. (Article 109(3)).
  • RS Power: The Rajya Sabha can only make recommendations, not amendments, on a Money Bill. (Article 109(3)).
  • Lok Sabha’s Discretion: The Lok Sabha has the power to accept or reject all or any of the recommendations made by the Rajya Sabha. (Article 109(3)).
  • Deemed Passage (LS Acceptance): If Lok Sabha accepts recommendations, the bill is deemed passed by both Houses with accepted amendments. (Article 109(4)).
  • Deemed Passage (LS Rejection): If Lok Sabha rejects recommendations, the bill is deemed passed by both Houses in the original form passed by the Lok Sabha. (Article 109(5)).
  • Deemed Passage (RS Delay): If Rajya Sabha does not return the bill within fourteen days, it is deemed passed by both Houses in the original Lok Sabha form at the end of the 14-day period. (Article 109(6)).
  • No Joint Sitting: Article 108 (Joint Sitting) is not applicable to Money Bills due to the special procedure outlined in Article 109.
  • Certification: A Money Bill must be certified as such by the Speaker of the Lok Sabha (as per Article 110(3)). The Speaker’s decision is final.
  • Limited RS Power: The Rajya Sabha has very limited power over Money Bills, primarily restricted to a delaying period of 14 days and the ability to offer non-binding recommendations.

Additional Comments

  • The definition of a Money Bill is provided in Article 110 of the Constitution. Article 109 specifically deals with the procedure after a bill has been certified as a Money Bill by the Speaker.
  • The special procedure for Money Bills is a significant instance of the Lok Sabha exercising pre-eminence over the Rajya Sabha in financial matters.
  • This procedure is designed to prevent the Rajya Sabha from impeding the government’s financial proposals and ensuring the smooth functioning of the fiscal administration.
  • The process for Financial Bills (Article 117) is different; while some Financial Bills also require Presidential recommendation for introduction (similar to Money Bills), the subsequent procedure may follow that of ordinary bills, giving the Rajya Sabha more power than with Money Bills.
  • The finality of the Speaker’s decision on whether a bill is a Money Bill is a crucial element linked to this article’s procedure.

Summary

Article 109 establishes a unique procedure for Money Bills in the Indian Parliament. It mandates that Money Bills can only be introduced in the Lok Sabha. After the Lok Sabha passes a Money Bill, it is sent to the Rajya Sabha. The Rajya Sabha must return the bill within fourteen days, providing only recommendations, which the Lok Sabha is free to accept or reject. If the Rajya Sabha does not return the bill within the fourteen-day limit, it is automatically deemed passed by both Houses in the form approved by the Lok Sabha. This procedure severely restricts the power of the Rajya Sabha over Money Bills, ensuring that financial legislation primarily reflects the will of the Lok Sabha.
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