With reference to the 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?
- A.Only one
- B.Only two
- C.All three
- D.None
▶ Answer & Explanation
Correct answer: B. Only two
The Constitution grants different powers to the Rajya Sabha concerning Money Bills and Finance Bills. For Money Bills, the Rajya Sabha's role is limited to suggesting amendments, which the Lok Sabha is not bound to accept, and it cannot reject the bill. However, for Finance Bills (which may include provisions of Money Bills but also other financial matters), the Rajya Sabha possesses powers similar to ordinary bills, including the ability to amend or reject them. Disagreements on Money Bills do not involve joint sittings, but joint sittings can be convened for Finance Bills if a deadlock occurs.
Source: UPSC gs1 2023