Explained |
Polity |
Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure
Introduction
- Against the backdrop of significant judicial pronouncements, including recent decisions on the electoral bond scheme and the Aadhaar Act, the Supreme Court grapples with a pivotal question: the delineation of a money Bill.
Why discuss this?
- The ongoing examination before a seven-judge constitution bench highlights the crucial need to define the scope of a money Bill and its broader implications.
- This issue carries substantial weight for legislative efficiency and constitutional adherence.
What are Money Bills?
|
Description |
| About |
A financial legislation exclusively dealing with revenue, taxation, government expenditures, and borrowing. |
| Constitutional Basis |
- Article 109: Specifies special procedure for Money Bills.
- Article 110(1): Specifies matters related to taxation, borrowing, and appropriation of funds.
- Article 110(3): Grants the Speaker of the Lok Sabha the final decision on whether a bill qualifies as a Money Bill.
|
| Procedure |
- Introduction in Lok Sabha with the President’s recommendation.
- Consideration and passage in Lok Sabha.
- Transmission to Rajya Sabha for recommendations (no amendments).
- Return to Lok Sabha for consideration of recommendations.
- Acceptance or rejection of recommendations by Lok Sabha.
- Assent by the President without the power to return for reconsideration.
|
| Criteria for a Money Bill |
- Imposition, abolition, or regulation of taxes.
- Regulation of borrowing or giving guarantees by the Government of India.
- Custody of the Consolidated Fund or the Contingency Fund of India.
- Appropriation of money from the Consolidated Fund of India.
- Declaration of any expenditure as expenditure charged on the Consolidated Fund of India.
- Receipt of money into or out of the Consolidated Fund of India or the public account of India.
- Any matter incidental to the specified criteria.
|
| Decision Authority |
Speaker of the Lok Sabha has the final decision on whether a bill qualifies as a Money Bill. |
| President’s Role |
President can either accept or reject a Money Bill but cannot return it for reconsideration. |
| Joint Sitting |
No provision for Joint sitting for the passage such Bill. |
Key Legal Precedents
[1] Prevention of Money Laundering Act (PMLA) Amendments:
- Amendments introduced since 2015 to the PMLA expanded the Enforcement Directorate’s powers, triggering concerns over their passage as Money Bills.
- Critics argue that such significant alterations should have undergone standard parliamentary scrutiny involving both houses.
[2] Finance Act of 2017:
- The Finance Act of 2017, designated as a Money Bill, attracted scrutiny for purportedly aiming to reshape appointments to 19 crucial judicial tribunals.
- Allegations surfaced suggesting a deliberate manoeuvre to enhance executive authority over these tribunals by categorizing the Act as a Money Bill.
- Additionally, changes within the Act relaxed qualifications and experience prerequisites for staffing these pivotal judicial entities, raising concerns of dilution.
[3] Aadhaar Act, 2016:
- The Supreme Court’s 2018 ruling upheld the validity of the Aadhaar Act as a Money Bill, despite lingering legal and procedural uncertainties.
- The government’s argument hinged on the Act’s nexus to subsidies disbursed from the Consolidated Fund of India, justifying its classification as a Money Bill.
- However, the verdict prompted calls for a comprehensive reevaluation, reflecting lingering doubts over the Act’s classification and its implications for parliamentary oversight.
Legal Implications
- Parliamentary Bypass: By categorizing crucial amendments as Money Bills, the standard legislative process involving both houses of Parliament is bypassed, limiting comprehensive scrutiny and deliberation.
- Eroding Rajya Sabha Scrutiny: Critics argue that such amendments, which often encompass far-reaching implications, should undergo thorough examination and debate in both the Lok Sabha and the Rajya Sabha.
- Hasty Lawmaking: Designating important legislations as Money Bills undermines the role of the Rajya Sabha, curtailing its authority in the lawmaking process.
- Against Democratic-Ethos: This erosion of parliamentary oversight raises concerns about the equitable distribution of legislative power and the preservation of democratic principles.
- Lack of Judicial Scrutiny: The judiciary plays a crucial role in adjudicating the legality and constitutional conformity of categorizing amendments as Money Bills.
Future Prospects
- Impending Legal Clarity: The anticipated verdict by the seven-judge bench holds the potential to reshape legislative dynamics, potentially paving the way for renewed challenges against contentious enactments.
- Judicial Review: The judiciary’s vigilance in scrutinizing the validity of money Bills underscores its commitment to upholding constitutional principles and safeguarding legislative integrity.
- Democratic Accountability: The evolving jurisprudence surrounding money Bills epitomizes the judiciary’s role in navigating complex constitutional nuances, ensuring robust legislative frameworks and institutional accountability.
Conclusion
- As the legal saga unfolds, the apex court’s forthcoming pronouncement holds profound implications for India’s legislative landscape and institutional accountability, heralding a new chapter in the nation’s constitutional journey.
Try this PYQ:
Q. Regarding the Money Bill, which of the following statements is not correct? (CSP 2018)
(a) A bill shall be deemed to be a Money Bill if it contains only provisions relating to the imposition, abolition, remission, alteration or regulation of any tax.
(b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
(c) A Money Bill is concerned with the appropriation of money out of the Contingency Fund of India.
(d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.
Post your answers here.
