Part V: The Union

Special Procedure in Respect of Money Bills

Article 109: Special Procedure in Respect of Money Bills

Overview of Article 109: Special Procedure in Respect of Money Bills

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(1) A Money Bill shall not be introduced in the Council of States.

(2) After a Money Bill has been passed by the House of the People it shall be transmitted to the Council of States for its recommendations and the Council of States shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the House of the People with its recommendations and the House of the People may thereupon either accept or reject all or any of the recommendations of the Council of States.

(3) If the House of the People accepts any of the recommendations of the Council of States, the Money Bill shall be deemed to have been passed by both Houses with the amendments recommended by the Council of States and accepted by the House of the People.

(4) If the House of the People does not accept any of the recommendations of the Council of States, the Money Bill shall be deemed to have been passed by both Houses in the form in which it was passed by the House of the People without any of the amendments recommended by the Council of States.

(5) If a Money Bill passed by the House of the People and transmitted to the Council of States for its recommendations is not returned to the House of the People within the said period of fourteen days, it shall be deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by the House of the People.

Explanations

Article 109 of the Constitution of India outlines the special procedure to be followed in relation to Money Bills, focusing on the role of both the Houses of Parliament—the House of the People (Lok Sabha) and the Council of States (Rajya Sabha). Money Bills, which primarily deal with the financial matters of the government, such as taxation, borrowing, and expenditure, must adhere to a unique legislative process that limits the role of the Council of States, enhancing the financial supremacy of the House of the People.

Clause-by-Clause Explanation

Clause (1): Introduction of Money Bills

This clause explicitly prohibits the introduction of a Money Bill in the Council of States (Rajya Sabha). According to Article 110, the exclusive power to introduce a Money Bill lies with the House of the People (Lok Sabha), reinforcing the Lok Sabha's central role in financial legislation.

Clause (2): Transmission and Recommendations by the Council of States

Once the House of the People passes a Money Bill, it is transmitted to the Council of States for its recommendations. The Council of States must return the Bill with its recommendations within fourteen days from the date it receives the Bill. Importantly, the House of the People has the discretion to accept or reject these recommendations, giving it the final authority over the Bill's content.

Clause (3): Acceptance of Recommendations

If the House of the People accepts any of the recommendations made by the Council of States, the Bill is considered to have been passed by both Houses with those amendments. This clause underscores the principle of cooperation between the Houses, while still preserving the primacy of the House of the People.

Clause (4): Rejection of Recommendations

If the House of the People does not accept the recommendations of the Council of States, the Bill is deemed passed in its original form, as passed by the House of the People. This clause further emphasizes the limited role of the Council of States in Money Bill legislation.

Clause (5): Deemed Passage of the Bill

In the event that the Council of States fails to return the Money Bill to the House of the People within the fourteen-day period, the Bill is automatically considered passed in the form originally passed by the House of the People. This provision ensures timely legislative action on financial matters, preventing any undue delays by the Council of States.

Real-Life Examples

  • In 2017, the Finance Bill, a critical Money Bill, was passed by the Lok Sabha and sent to the Rajya Sabha. The Rajya Sabha recommended several amendments, but the Lok Sabha chose to reject most of these, showcasing the limited influence of the Rajya Sabha in financial legislation.
  • In cases like the passing of the Goods and Services Tax (GST) Act, the role of the Rajya Sabha was largely consultative, with the Lok Sabha making the final decisions on its financial provisions.

Historical Significance

This provision stems from British parliamentary tradition, where the House of Commons holds supremacy in financial matters. It was incorporated into the Indian Constitution to prevent legislative delays and deadlocks over critical financial decisions. The framers drew from the Government of India Act, 1935, ensuring that elected representatives had the final say on economic policies.

Legislative History

Article 109 of the Indian Constitution, initially drafted and deliberated as article 89 of the Draft Constitution, was subsequently incorporated into the Indian Constitution on May 20,1949.

Debates and Amendments

During the debates on the Constitution, Shri T.T. Krishnamachari proposed an amendment to Article 89 (now Article 109) regarding the time allotted to the Council of States (Rajya Sabha) to review Money Bills passed by the House of the People (Lok Sabha). He suggested reducing the review period from "thirty days" to "twenty-one days," stating that even fourteen days would be sufficient for this purpose.

Dr. B.R. Ambedkar, acknowledging the importance of the amendment, accepted Shri T.T. Krishnamachari's proposal. He further advanced the suggestion by proposing a reduction to fourteen days, emphasizing the urgency of financial and budgetary matters. Dr. Ambedkar explained that while the Rajya Sabha has a limited financial role, unlike the British House of Lords, which has no financial authority, extending the review period beyond fourteen days would be excessive.

The Constituent Assembly, recognizing the importance of ensuring timely passage of Money Bills, accepted the amended article, reducing the review period to fourteen days. This provision was subsequently incorporated into the final text of the Indian Constitution.

References

  • The Constitution of India - Article 109, Special Procedure in Respect of Money Bills.
  • Constituent Assembly Debates - Debates surrounding Article 89 (Draft Article 89) on the procedure for Money Bills.
  • The Finance Bill, 2017 - A significant Money Bill reflecting the process outlined in Article 109.
  • The Constitution (One Hundred and First Amendment) Act, 2016 - The introduction of the Goods and Services Tax (GST) as a Money Bill.
  • The Government of India Act, 1935 - The predecessor legislation to the Indian Constitution, providing the framework for financial matters.
  • Indian Parliamentary Procedures - Rules and regulations concerning the legislative process, especially related to financial legislation.
Article 108 Article 110