UPSC Prelims 2023 – Question 37

Q 37. With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements: 

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

2. When the Lok Sabha transmits the 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 

Correct Answer: Option (a) 

• A Finance Bill is a Money Bill as defined in Article 110 of the Constitution. Whereas a Financial Bill is an ordinary bill as it apart from dealing with money matters also deals with non-money matters. The Finance Bill is accompanied by a Memorandum containing explanations of the provisions included in it. The Finance Bill can be introduced only in Lok Sabha. However, the Rajya Sabha can only recommend amendments in the Bill. The bill has to be passed by the Parliament within 75 days of its introduction. Hence, statement 1 is not correct and statement 2 is correct. 
• As a finance bill is a money bill so no joint sitting of the two houses is allowed with regard to a finance bill under Article 108. Hence, statement 3 is not correct. 

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