Money Bill
WHY IN NEWS ?
Chief Justice of India said that a seven-judge bench will soon be set up to hear a batch of pleas challenging the Centre’s use of the money bill route to pass certain key legislations.
Finance Bill
- In a general sense, any Bill that relates to revenue or expenditure is a financial Bill.
- A money Bill is also a specific type of financial Bill, that must deal only with matters specified in Article 110 (1) (a) to (g).
- Financial bills are responsible for the fiscal matters such as government spending or revenue.
- It specifies the amount of money to be spent by the government and the way it is to be spent.
Money Bill
- Article 110 defines a money Bill as one containing provisions dealing with taxes, regulation of the government’s borrowing of money, and expenditure or receipt of money from the Consolidated Fund of India, among others.
- Article 109 delineates the procedure for the passage of such a Bill and confers an overriding authority on the Lok Sabha in the passage of money Bills.
- The Speaker certifies a Bill as a Money Bill, and the Speaker’s decision is final.
What is the difference between money Bills and financial Bills?
- While all Money Bills are Financial Bills, all Financial Bills are not Money Bills.
- g., the Finance Bill which only contains provisions related to tax proposals would be a Money Bill.
- While an ordinary Bill can originate in either house, a money Bill can only be introduced in the Lok Sabha, as laid down in Article 117 (1).
- Additionally, no one can introduce or move money Bills in the Lok Sabha, except on the President’s recommendation.
- Amendments relating to the reduction or abolition of any tax are exempt from the requirement of the President’s recommendation.
Background of the present case
- regarding the validity of PMLA
- In July 2022, a three-judge bench had upheld the PMLA and the vast powers of the ED.
- However, the bench had left the validity of amendments to the PMLA through the Money Bill route open for a larger Constitution bench to hear.
Aadhaar as money bill
- The first major challenge on whether a bill qualified to be a money bill under the Constitution was in the Aadhaar case.
- In a 4:1 majority, the Supreme Court in 2018, had ruled in favour of the government and had cleared the Aadhaar Act as a valid money bill under Article 110 of the Constitution.
Tribunal reform
- In November 2019, in Roger Matthew vs Union of India, the SC heard the challenge against tweaks in the service conditions of tribunal members which was also introduced as a money bill in the Finance Act, 2017.
- While a five judge bench of the court struck down the law as unconstitutional for interfering with judicial independence, it referred the money bill aspect to a larger constitution bench.
SOURCE – THE HINDU
