Question
With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:
1. When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
2. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
3. In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for money bill, but a joint sitting becomes necessary for Finance bill.
How many of the above statements are correct?
Correct Answer — B
Explanation
The correct option is B (Only two).
- Crucial Clarification on Terminology: UPSC evaluated the term “Finance Bill” strictly as a constitutional “Financial Bill” under Article 117, rather than the annual budget bill certified under Article 110.
- Statement 1 is correct: Under Article 117, once a Financial Bill is transmitted to the Rajya Sabha, it is treated like an ordinary bill. The Rajya Sabha has full powers to amend or reject it.
- Statement 2 is correct: Under Article 109, the Rajya Sabha has strictly limited powers regarding a Money Bill (Article 110). It cannot amend or reject the bill; it can only return it with recommendations within 14 days.
- Statement 3 is incorrect: A joint sitting under Article 108 is an enabling power—the President may summon both Houses to resolve a deadlock. It is an optional presidential discretion, so it never “becomes necessary” (mandatory) for a Financial Bill.
Therefore, only two statements (1 and 2) are correct.