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Article 110 of the Indian Constitution: Definition of 'Money Bills'

Part: V
Shorthand Notes: Money Bill Definition, Speaker's Certificate

Introduction

Article 110 of the Indian Constitution is a crucial provision, specifically defining what constitutes a “Money Bill.” This definition is of paramount importance as it determines the legislative procedure a bill must follow, particularly in the context of the Parliament of India. Money Bills are subject to a distinct process, including the exclusive power of the Lok Sabha and a limited role for the Rajya Sabha. Understanding the parameters set out in Article 110 is essential for comprehending the financial legislative landscape in India.

Original Text

110. Definition of “Money Bills”.

(1) For the purposes of this Chapter, 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 relating to the financial obligations of that Government;

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

(d) the appropriation of money 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 any tax or levy 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 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 also 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.

Detailed Explanation

Article 110 provides a precise definition of a “Money Bill.” It specifies the exclusive subject matter that a bill must contain to be classified as a Money Bill. This definition is crucial because the procedure for a Money Bill is different from that of an ordinary bill. The Lok Sabha has significant power over Money Bills; the Rajya Sabha’s role is limited.

Key Components of Article 110:

  • Definition of Money Bill (Clause 1): This clause exhaustively lists the matters that a bill must deal with to be considered a Money Bill. These matters primarily relate to financial aspects like taxation, government borrowing, custody of funds, appropriation of money, and related areas. The list is comprehensive.
  • Exceptions (Clause 2): This clause provides exceptions to the definition of Money Bill. It clarifies that a bill is not automatically a Money Bill simply because it imposes fines, demands fees for licenses/services, or relates to local taxes/levies.
  • Speaker’s Decision (Clause 3): This is a very important aspect. It states that the Speaker of the Lok Sabha has the final authority to decide whether a bill is a Money Bill or not. This decision is not subject to judicial review. This power is crucial because it determines which legislative process a bill must follow.
  • Speaker’s Certificate (Clause 4): When a bill is certified as a Money Bill by the Speaker, it must be endorsed with a certificate signed by the Speaker. This certificate accompanies the bill when it is sent to the Rajya Sabha (under Article 109) and when presented to the President for assent (under Article 111). This certificate acts as a formal acknowledgement of its status.

Detailed Notes

  • Definition of Money Bill: The article provides an exhaustive list of matters that a bill must deal with to be classified as a Money Bill.
    • Imposition, abolition, remission, alteration, or regulation of any tax.
    • Regulation of government borrowing and guarantees.
    • Custody of the Consolidated Fund and Contingency Fund.
    • Payment into or withdrawal from these Funds.
    • Appropriation of money out of the Consolidated Fund.
    • Declaring expenditure as charged on the Consolidated Fund.
    • Receipt, custody, and audit of money.
    • Any matter incidental to the above.
  • Exceptions: Certain provisions don’t automatically make a bill a Money Bill.
    • Imposition of fines or pecuniary penalties.
    • Demand for fees for licenses or services.
    • Provisions for local taxes.
  • Speaker’s Decision: The Speaker of the Lok Sabha’s decision on whether a bill is a Money Bill is final.
  • Speaker’s Certificate: A signed certificate from the Speaker is required on every Money Bill when transmitted to the Rajya Sabha and presented to the President.

Additional Comments

  • The Speaker’s decision is based on the content of the Bill. This reinforces the importance of the definition provided in Article 110(1).
  • The limited role of the Rajya Sabha in Money Bills is a significant characteristic of the Indian parliamentary system.
  • The definition of Money Bill is crucial for ensuring that financial matters are handled with proper procedure and transparency. It also addresses the core principle of parliamentary supremacy in financial matters, with the Lok Sabha holding greater power in financial legislation than the Rajya Sabha.
  • The power given to the Speaker is a significant one, giving them authority over what is considered a “money bill.” This power is a reflection of the importance of financial matters and their need for efficient parliamentary handling.
  • The Speaker’s decision on classifying a Bill as a Money Bill is subject to judicial review, as established by the Supreme Court.

Summary

Article 110 defines what constitutes a “Money Bill,” specifying subject matters relating to taxation, government borrowing, and financial matters. It states the Speaker of the Lok Sabha’s decision is final on whether a bill qualifies, and requires a certificate from the Speaker on all such bills.
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