Part V - Parliament • Article

Article 110 Simplified: Definition of “Money Bills”

A Money Bill is a high-speed law that deals only with taxes, government borrowing, or spending public money. Because it's about the people's money, the Lok Sabha (where the people's direct representatives sit) has total control over it. The Rajya Sabha can only suggest changes but cannot stop it.

Official Text

(1) 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). (2) 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. (3) 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. (4) There shall be endorsed on every Money Bill when it is transmitted to the Council of States 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.

Simple Meaning

Explain Like Ten

Imagine your school wants to change the fee rules. Only the class representatives we directly elected can suggest this rule. The principal (Speaker) has the final say on whether a rule is about school fees. That's a Money Bill!

Student Mode

Article 110 defines Money Bills. A bill is a Money Bill if it deals *only* with: (a) tax imposition/regulation, (b) government borrowing/guarantees, (c) custody/payments/withdrawals of Consolidated or Contingency Funds, (d) appropriation of money from the Consolidated Fund, (e) charging expenditure on the Consolidated Fund, (f) audit of accounts. It excludes fines, license fees, and local taxes. Under Article 110(3), the Speaker's decision is final and cannot be challenged in court (upheld in the Aadhaar Act case, though subject to judicial review under certain conditions).

Example

The 'Finance Bill' introduced every year with the Budget is a Money Bill. The Speaker of the Lok Sabha has the final power to decide if a bill is a Money Bill or not, and their decision cannot be challenged in court.

Key Takeaway

Money Bills ensure that the people's representatives have the final say on where the country's money goes.

FAQs

What makes a bill a Money Bill?

It must contain *only* provisions dealing with the matters listed in Article 110(1), such as imposition of taxes, government borrowing, or expenditure charged on the Consolidated Fund.

Can the Speaker's certification of a Money Bill be challenged in court?

Article 110(3) states the Speaker's decision is final. In the Aadhaar Case (KS Puttaswamy), the Supreme Court ruled that while the Speaker's decision is final, it is still subject to judicial review if it is a colorable exercise of power or constitutionally illegal.

What is the difference between a Money Bill and a Financial Bill?

All Money Bills are Financial Bills, but not all Financial Bills are Money Bills. Money Bills contain *only* the matters of Article 110(1) and require the Speaker's certification. Financial Bills (under Article 117) contain other legislative matters alongside financial ones.

Quiz

Which of the following is NOT a matter covered under Article 110 for Money Bills?

Answer: Imposition of fines or pecuniary penalties

Whose decision is final on whether a Bill is a Money Bill?

Answer: The Speaker of the Lok Sabha