Who Decides Whether a Bill is a Money Bill?

In India, the power to determine whether a bill is a Money Bill rests with the Speaker of the Lok Sabha, the lower house of the Indian Parliament. Furthermore, this power is in Article 110(3) of the Indian Constitution. The Speaker’s decision on whether a bill is a Money Bill is final, which means that the decision cannot be challenged in Court. Additionally, determining the classification of a Bill is important because Money Bills enjoy special privileges during the Legislative process. Thus, this guarantees the smooth passage of bills about the Government’s monetary matters. Read on to learn about where the Money Bill Originates from as well as if the Aadhaar Act is a Money Bill or not.

Where does the Money Bill Originate?

Unlike other bills introduced in either House of Parliament, Money Bills can only originate in the Lok Sabha. 

• This sole right is in Article 110(1) of the Indian Constitution.
  • The reason for this is to empower the Directly Elected House (Lok Sabha) with direct control over Government finances.

• Notably, the President’s recommendation is compulsory before a Money Bill can be introduced in the Lok Sabha.
  • This guarantees that the Government, led by the Prime Minister, agrees with the suggested monetary legislation.

• Even though the Rajya Sabha cannot initiate money bills, it has the power to suggest amendments.
  • However, the Lok Sabha is not obligated to accept these suggestions. 
  • The Rajya Sabha must return the Money Bill with or without recommendations within 14 days, after which the Lok Sabha can pass the Bill with or without the suggested changes.

Also Read: What is Question Hour in Parliament?

Is the Aadhaar Act a Money Bill?

The classification of the Aadhaar Act of 2016 as a Money Bill is a debated issue. 

• The Government argued it fell under Article 110(1)(c), (d), and (e), which deal with Government spending, public debt, and financial matters.
  • This allowed it to bypass the Rajya Sabha and be passed solely by the Lok Sabha under Article 112.

• However, critics argue the Aadhaar Act goes beyond just finances and impacts citizen privacy.
  • Justice Chandrachud, dissenting in the Supreme Court of Inda judgement, held this view. 
  • The debate highlights the anticipation between the quick passage of financial legislation and proper legislative scrutiny (usually provided by the Rajya Sabha).

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