Money Bill

                                                           Money Bill

Money bills as per the Indian Constitution (Article 110) should only consider provisions handling with the imposition, abolition, remission, alteration or regulation of any tax; the regulation of borrowings by the government of India and the regulation of the Consolidated Fund of India, including appropriation of moneys out of this fund. Simply put,  a money bill or supply bill is a  that primarily involves taxation or government spending (also identified as appropriation of money), instead of changes in public law. Money Bills can be introduced only in the Lok Sabha (Lower House) which is afterwards forwarded to the Rajya Sabha(Upper House) where the latter may or may not amend the same. The Lok Sabha Speaker approves the bill as a money bill before sending it to the upper house. This is to ensure Rajya Sabha doesn’t amend the bill by adding some non-money matters (identified as Financial Bill). Furthermore the resolution of the Speaker has to be complied by both the Houses. Recently the Insolvency and Bankruptcy Bill was introduced in the parliament as a Money Bill. The Rajya Sabha cannot oppose the Bill as it has no powers to amend the bill as explained above. Approving a bill as a money bill when its main principle is not run by Article 110 is an unconstitutional act.