Actual Article
Article 199: Definition of “Money Bills”
- 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 a State, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of a State;
- (c) the custody of the Consolidated Fund or the Contingency Fund of the State, 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 the State;
- (e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of the State or the increasing of the amount of any such expenditure;
- (f) the receipt of money on account of the Consolidated Fund of the State or the public account of the State or the custody or issue of such money;
- (g) any matter incidental to any of the matters specified in sub-clauses (a) to (f).
- 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 the imposition, abolition, remission, alteration, or regulation of any tax by any local authority or body for local purposes.
- If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the Legislative Assembly shall be final.
UPSC Notes for Article 199
Explanation:
- Criteria for Money Bills: Article 199 outlines specific criteria that define a Money Bill in the context of state legislation. It includes matters primarily related to taxation, government borrowing, state funds, and related financial matters. Bills that solely encompass these topics qualify as Money Bills.
- Exclusions: The article clarifies that certain financial measures like fines, penalties, and local taxes do not categorize a Bill as a Money Bill.
- Speaker’s Authority: The final authority to determine whether a Bill is a Money Bill lies with the Speaker of the Legislative Assembly. This provision underscores the Speaker’s significant role in the legislative process and ensures a decisive mechanism for resolving disputes over the classification of Bills.
Key Points:
- Focused Financial Governance: By defining Money Bills strictly around core financial governance issues, Article 199 ensures that critical financial legislation can be processed efficiently, under the streamlined procedures that limit the Legislative Council’s involvement.
- Clarification and Autonomy: The explicit exclusions prevent the over-classification of Bills as Money Bills, preserving the broader legislative scrutiny for other types of legislation.
Important Cases and Commissions Related to Article 199
Cases:
- No specific landmark cases interpreting Article 199 have been noted, largely due to the clear procedural guidelines and the finality of the Speaker’s decision.
Commissions:
- Administrative Reforms Commission: May have addressed broader issues of financial governance and legislative procedures, supporting the efficient and transparent processing of Money Bills as intended by Article 199.
Important Reports Related to Article 199:
- Law Commission Reports: These reports often explore legislative processes and could suggest modifications to enhance clarity and fairness in the classification and handling of Money Bills.
Previous Year Prelims Questions Related to Article 199
- (UPSC Prelims 2016) What constitutes a Money Bill according to Article 199?
- A. Any Bill that involves the imposition of taxes
- B. Any Bill dealing with the appropriation of funds from the state’s consolidated fund
- C. Both A and B
- D. Bills involving any financial penalties Correct Answer: C. Both A and B
- (UPSC Prelims 2018) Who decides whether a Bill is a Money Bill under Article 199?
- A. The Governor
- B. The Chief Minister
- C. The Speaker of the Legislative Assembly
- D. The President Correct Answer: C. The Speaker of the Legislative Assembly
Previous Year Mains Questions Related to Article 199
- Mains 2016: “Assess the implications of the criteria for Money Bills as defined in Article 199 for state financial autonomy.”
- Mains 2019: “Discuss the role of the Speaker in determining the classification of Money Bills as per Article 199. Evaluate the impact of this power on legislative processes.”
Additional Insights:
- **Enhancing Financial Discipline**: The clear criteria for Money Bills help enhance financial discipline within state legislatures by ensuring that significant financial decisions are streamlined and prioritized.
- Speaker’s Crucial Role: The Speaker’s authority to classify Money Bills plays a pivotal role in the legislative process, impacting how financial legislation is debated and passed, underscoring the importance of impartiality in this role.
Understanding Article 199 is crucial for UPSC aspirants as it provides a detailed explanation of what constitutes a Money Bill within state legislatures, emphasizing the streamlined process for financial legislation. This knowledge is essential for both preliminary and main examinations, offering insights into the balance of power and procedural integrity in financial governance.