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UPSC Prelims 2023GS1Polity & GovernanceParliamentary Procedures - Money Bill

Q1. With reference to Money Bill, consider the following statements:
1. All money bills are financial bills but not all financial bills are money bill.
2. Joint sitting for passing money bill is presided by the Speaker.
3. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
4. 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✓ Correct
C. All three
D. None

Detailed Solution

✓ Correct Answer: Option B

Statement 1 is correct: All Money Bills are a specific type of Financial Bill (Category I), but not all Financial Bills qualify as Money Bills. Financial Bills are broader and include provisions beyond those specified in Article 110.

Statement 2 is incorrect: Joint sittings of Parliament are not permissible for Money Bills. The Lok Sabha has overriding powers in this regard. Statement 3 is correct: When the Lok Sabha passes a Money Bill and transmits it to the Rajya Sabha, the Rajya Sabha can only make recommendations, which the Lok Sabha may or may not accept.

It cannot amend or reject the bill. Statement 4 is incorrect: As mentioned, no joint sitting is possible for Money Bills. While a joint sitting can be convened for Financial Bills (Category I) in case of a deadlock, it is not 'necessary' and Financial Bills (Category II) are treated like ordinary bills where a joint sitting is also possible but not mandatory. Therefore, two statements are correct.

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