Actual Article
Article 110: Definition of Money Bills
- Definition:
- 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 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).
- Exclusion Clause:
- 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 licenses 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.
- Certification by Speaker:
- 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.
- There shall be endorsed on every Money Bill when it is transmitted to the Council of States (Rajya Sabha) 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.
UPSC Notes for Article 110
Explanation:
- Definition of Money Bill:
- A Bill is deemed to be a Money Bill if it contains provisions related to specific financial matters such as taxation, borrowing, Consolidated Fund, appropriation of money, and matters incidental to these.
- Exclusion Clause:
- A Bill is not considered a Money Bill if it deals solely with fines, fees for licenses, services rendered, or local taxation.
- Speaker’s Certification:
- The Speaker of the Lok Sabha has the final authority to decide whether a Bill is a Money Bill. The Speaker’s certification is required on every Money Bill when it is sent to the Rajya Sabha and when it is presented to the President for assent.
Key Points:
- Clear Definition: Specifies the matters that constitute a Money Bill, providing clarity on what qualifies as a Money Bill.
- Speaker’s Authority: The Speaker’s decision on whether a Bill is a Money Bill is final, ensuring a definitive and authoritative classification.
- Legislative Efficiency: The clear definition and certification process facilitate the efficient handling of financial legislation.
Important Cases and Commissions Related to Article 110
Cases:
- Mohd. Saeed Siddiqui vs. State of UP (2014): The Supreme Court upheld the Speaker’s authority to decide whether a Bill is a Money Bill, reinforcing the finality of the Speaker’s decision.
- Raja Ram Pal vs. Hon’ble Speaker, Lok Sabha (2007): Highlighted the powers and privileges of the Speaker, indirectly emphasizing the Speaker’s role in certifying Money Bills.
Commissions:
- Sarkaria Commission: Analyzed Centre-State financial relations and the definition and handling of Money Bills.
- National Commission to Review the Working of the Constitution (NCRWC) (2002): Suggested reforms to ensure clarity and transparency in the classification and handling of Money Bills.
Previous Year Prelims Questions Related to Article 110
- (UPSC Prelims 2016) Which of the following provisions are included in the definition of a Money Bill under Article 110?
- A. Imposition of taxes
- B. Regulation of borrowing by the government
- C. Appropriation of money from the Consolidated Fund of India
- D. All of the above Correct Answer: D. All of the above
- (UPSC Prelims 2018) Who has the final authority to decide whether a Bill is a Money Bill or not?
- A. The President
- B. The Prime Minister
- C. The Speaker of the Lok Sabha
- D. The Chairman of the Rajya Sabha Correct Answer: C. The Speaker of the Lok Sabha
Previous Year Mains Questions Related to Article 110
- Mains 2017: “Discuss the significance of the Speaker’s authority in certifying Money Bills under Article 110. How does this authority impact the legislative process?”
- Mains 2019: “Analyze the definition of Money Bills under Article 110. How does this definition ensure clarity and efficiency in financial legislation?”
Additional Insights:
- Ensuring Financial Control: The clear definition of Money Bills under Article 110 ensures that critical financial matters are handled with focused legislative procedures.
- Authority of the Speaker: The Speaker’s certification provides a definitive classification, preventing disputes and ensuring smooth legislative functioning.
- Exclusions for Clarity: By excluding fines, fees, and local taxes from the definition, Article 110 ensures that only substantial financial matters are treated as Money Bills.
Understanding Article 110 is crucial for UPSC aspirants as it provides a clear definition of Money Bills and outlines the authoritative role of the Speaker in their classification. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions governing financial legislation within India’s parliamentary system.