Actual Article
Article 207: Special provisions as to financial Bills
- A Bill or amendment shall not be deemed to be a Money Bill by reason only that it provides for the imposition, abolition, remission, alteration, or regulation of any tax by any local authority or body for local purposes.
- 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: the imposition, abolition, remission, alteration or regulation of any tax; 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; 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; the appropriation of moneys out of the Consolidated Fund of the State; 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; 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; or any matter incidental to any of the matters specified in sub-clause (a) to (f).
- 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 207
Explanation:
- Definition and Scope: Article 207 provides clear guidelines on what constitutes a Money Bill within a state’s legislative framework. It emphasizes that a Bill that includes specific financial measures, particularly those affecting state finances directly, qualifies as a Money Bill.
- Exclusions: The article specifically excludes from the definition of Money Bills those financial measures that pertain only to local authorities or bodies for local purposes, such as local taxes or financial activities.
- Authority of the Speaker: Similar to Article 199, this article vests the final authority to determine whether a Bill is a Money Bill in the Speaker of the Legislative Assembly. This underscores the Speaker’s pivotal role in the legislative process regarding financial legislation.
Key Points:
- Clarification on Local Financial Measures: By excluding local financial measures from the definition of Money Bills, Article 207 ensures that state-level legislative oversight focuses on broader state financial matters rather than local fiscal issues.
- Central Role of the Speaker: The Speaker’s authority to classify a Bill as a Money Bill reinforces the procedural integrity and central oversight of financial legislation in the state assembly.
Important Cases and Commissions Related to Article 207
Cases:
- No specific landmark cases interpreting Article 207 have been noted, as this article involves straightforward legislative definitions and procedural roles typically followed without judicial intervention.
Commissions:
- Administrative Reforms Commission: Might have considered the delineation and clarity of financial legislation roles to enhance legislative efficiency and accountability.
Important Reports Related to Article 207:
- Law Commission Reports: May include discussions on the classification of financial legislation and its impact on state governance, suggesting improvements for clarity and procedural efficiency.
Previous Year Prelims Questions Related to Article 207
- (UPSC Prelims 2016) What is the role of the Speaker in the context of Money Bills as specified in Article 207?
- A. To introduce Money Bills in the legislature
- B. To decide whether a Bill is a Money Bill
- C. To vote on Money Bills
- D. To amend Money Bills Correct Answer: B. To decide whether a Bill is a Money Bill
- (UPSC Prelims 2018) Which of the following would not make a Bill a Money Bill under Article 207?
- A. Regulation of state taxes
- B. Regulation of taxes by local bodies for local purposes
- C. Appropriation of funds from the state’s Consolidated Fund
- D. Custody of the state’s Contingency Fund Correct Answer: B. Regulation of taxes by local bodies for local purposes
Previous Year Mains Questions Related to Article 207
- Mains 2016: “Discuss the significance of the exclusion of local authority taxes from the definition of Money Bills as outlined in Article 207.”
- Mains 2019: “Evaluate the impact of the Speaker’s authority to classify Bills as Money Bills on the legislative process in state assemblies as per Article 207.”
Additional Insights:
- Fiscal Responsibility and Governance: Article 207 helps maintain fiscal responsibility by defining the scope and process for handling Money Bills, ensuring that significant state financial decisions are subject to rigorous legislative control and oversight.
- **Balancing Local and State Financial Autonomy**: The exclusion of local financial measures supports the autonomy of local governance, allowing local bodies to manage their financial matters independently from state oversight, unless specifically legislated otherwise.
Understanding Article 207 is crucial for UPSC aspirants as it elucidates the definitions and processes surrounding Money Bills in state legislatures, highlighting the checks and balances involved in state fiscal management. This knowledge is essential for both preliminary and main examinations, offering insights into the procedural aspects of financial governance at the state level.