📘 Q.6 IAS Prelims 2023 — Polity & Governance: Finance Bill vs Money Bill
🧷 Authentic Classroom Explanation by IAS Monk
📍 The Question:
With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:
- When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
- When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
- 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
✅ Correct Answer: (a)
🔎 Curiosity Raiser (UPSC trap zone)
UPSC deliberately mixes Money Bill and Finance Bill to test whether you know the exact constitutional procedure, not surface similarity.
🧠 Core Concept Tested
Articles 110, 117 and 108 — Legislative procedure for financial legislation
🔍 Classroom Explanation (UPSC Prelims Focused)
Statement 1 ❌
- Only Money Bills (Article 110) restrict Rajya Sabha’s powers.
- Finance Bill (I) under Article 117(1) is treated like an ordinary bill.
- Hence, the statement is over-generalised and incorrect.
Statement 2 ✅
- For a Money Bill, Rajya Sabha:
- cannot amend or reject,
- can only make recommendations.
- Lok Sabha may accept or reject them.
Statement 3 ❌
- No joint sitting for Money Bills.
- For Finance Bills, joint sitting is possible but not mandatory.
- The phrase “becomes necessary” makes the statement incorrect.
📘 Enrich Notes (Prelims Value Add)
- Money Bill (Art. 110) → Lok Sabha supremacy, no joint sitting
- Finance Bill (Art. 117) → Two types; Finance Bill I follows ordinary procedure
- Joint Sitting (Art. 108) → Never for Money Bills
🧘♂️ IAS Monk Whisper
Procedure is power in disguise;
miss the procedure, miss the Constitution.
