UPSC Prelims 2023 · Question 17 of 97

UPSC Prelims 2023 question on Finance Bill vs Money Bill

With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:

1. When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
2. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
3. 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?

  1. Only one
  2. Only two
  3. All three
  4. None
Show answer

Answer: A. Only one

Verdict

Only statement 2 is correct → Option (a) Only one.

Statement by statement

Statement 1 – INCORRECT: A Finance Bill is a type of Money Bill as defined in Article 110(a) of the Constitution. The Finance Bill can be introduced only in Lok Sabha. The Rajya Sabha can only recommend amendments in the Bill; it cannot amend or reject it. The bill has to be passed by Parliament within 75 days of its introduction.

Statement 2 – CORRECT: When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.

Statement 3 – INCORRECT: As a finance bill is a money bill, no joint sitting of the two houses is allowed with regard to a finance bill under Article 108.

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