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Prelims 2023 · Q37 · Money Bills & budget

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

  1. 1.When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
  2. 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. 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?

Show answer

Answer: B. Statement 1 is correct: a Finance Bill that is not a Money Bill is treated like an ordinary bill, so the Rajya Sabha can amend or reject it. Statement 2 is correct: for a Money Bill, the Rajya Sabha can only make recommendations within 14 days (Article 109). Statement 3 is wrong: there is no joint sitting for a Money Bill, but for a Finance Bill a joint sitting is only possible, not 'necessary'; the President may call one under Article 108. So only two.

Watch for: The word 'necessary' in statement 3 is the catch; a joint sitting is optional under Article 108.

Why the other options are wrong
  • A. Wrong because statements 1 and 2 are both correct.
  • C. Wrong because a joint sitting is never compulsory.
  • D. Wrong because statements 1 and 2 are correct.

Source to check: Constitution of India, Articles 108, 109, 110 and 117

Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.