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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legislative Process in India

In the Indian Parliament, which of the following is the correct definition of a Money Bill?

A Money Bill is one containing only provisions on matters such as taxation, government borrowing or expenditure from the Consolidated Fund of India. A Bill that merely has financial implications, or is introduced by the Finance Minister, does not become a Money Bill on that basis.

  1. AA Bill that contains only provisions dealing with matters such as taxation, borrowing by the Government or expenditure from the Consolidated Fund of IndiaCorrect
  2. BAny Bill that has some financial implication for the Government
  3. CAny Bill introduced by the Finance Minister on any subject
  4. DAny Bill that creates a new office with a salary payable by the Government

Explanation

Under Article 110, a Money Bill deals only with specified financial matters such as taxation, government borrowing and the Consolidated Fund. A Bill that merely has financial implications is a Financial Bill, not a Money Bill. The identity of the minister introducing it does not decide its character.

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