Part VI - The States • Article

Article 198 Simplified: Special procedure in respect of Money Bills

Article 198 lays down the special rules for Money Bills in a bicameral State Legislature. A Money Bill can only be introduced in the Assembly (never the Council). Once the Assembly passes it, the Bill goes to the Council for recommendations within 14 days. The Assembly can accept or reject those recommendations—but the Bill passes either way. If the Council sits on it for 14 days without response, the Bill is deemed passed as the Assembly sent it. The Council's role is advisory only.

Official Text

(1) A Money Bill shall not be introduced in a Legislative Council. (2) After a Money Bill has been passed by the Legislative Assembly of a State having a Legislative Council, it shall be transmitted to the Legislative Council for its recommendations, and the Legislative Council shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the Legislative Assembly with its recommendations, and the Legislative Assembly may thereupon either accept or reject all or any of the recommendations of the Legislative Council. (3) If the Legislative Assembly accepts any of the recommendations of the Legislative Council, the Money Bill shall be deemed to have been passed by both Houses with the amendments recommended by the Legislative Council and accepted by the Legislative Assembly. (4) If the Legislative Assembly does not accept any of the recommendations of the Legislative Council, the Money Bill shall be deemed to have been passed by both Houses in the form in which it was passed by the Legislative Assembly without any of the amendments recommended by the Legislative Council. (5) If a Money Bill passed by the Legislative Assembly and transmitted to the Legislative Council for its recommendations is not returned to the Legislative Assembly within the said period of fourteen days, it shall be deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by the Legislative Assembly.

Simple Meaning

Explain Like Ten

The State Budget contains the government's spending plans—this is a Money Bill. Article 198 says only the elected Assembly can introduce Money Bills (not the Council). The Council gets 14 days to suggest improvements. But whether the Assembly accepts or ignores those suggestions, the Money Bill passes. If the Council doesn't even reply in 14 days, it passes automatically. The Assembly has total control over state finances.

Student Mode

Article 198 mirrors Article 109 (Money Bills in Parliament). The key sequence: (1) Money Bill introduced only in Assembly; (2) after Assembly passes it, transmitted to Council; (3) Council has 14 days to return with recommendations; (4) Assembly may accept or reject any recommendation; (5) if Council doesn't return within 14 days, Bill deemed passed in Assembly's form. The Council has no veto power over Money Bills.

Example

When Bihar's Assembly passes its annual State Budget (a Money Bill), the Budget goes to the Legislative Council for recommendations. Even if the Council suggests cuts to certain departments, the Assembly can simply reject all suggestions and pass it unchanged. If the Council takes no action within 14 days, the Budget becomes law automatically.

Key Takeaway

Article 198 gives the Assembly full control over Money Bills; the Council can only advise, never block financial legislation.

FAQs

Can the Legislative Council introduce a Money Bill?

No. Article 198(1) expressly prohibits introduction of a Money Bill in the Legislative Council. It can only be introduced in the Legislative Assembly.

What if the Assembly rejects all of the Council's recommendations on a Money Bill?

The Money Bill is deemed passed in the form in which the Assembly originally passed it. The Assembly is under no obligation to accept any of the Council's recommendations.

Quiz

Within how many days must the Legislative Council return a Money Bill to the Assembly under Article 198?

Answer: 14 days

What happens if the Council does not return a Money Bill within 14 days under Article 198?

Answer: The Bill is deemed passed in the Assembly's form