Part VI: The State Legislature

Article 198: Special Procedure in Respect of Money Bills

Original Article:

Article 198. Special Procedure in Respect of Money Bills:

(1) A Money Bill shall not be introduced in a Legislative Council.

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

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

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

(5) If a Money Bill passed by the Legislative Assembly and transmitted to the Legislative Council for its recommendations is not returned to the Legislative Assembly 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 Legislative Assembly.

Explanations:

Article 198 of the Indian Constitution outlines the distinct procedure for Money Bills in states with a bicameral legislature, emphasizing the Legislative Assembly's supremacy over the Legislative Council in financial matters. This special procedure ensures that financial legislation is passed efficiently and without unnecessary delays.

Clause-by-Clause Breakdown:

Clause (1) – Introduction in Legislative Assembly:

Money Bills can only be introduced in the Legislative Assembly, not in the Legislative Council, ensuring financial matters are initiated by the directly elected representatives.

Clause (2) – Council's Recommendations:

After passage in the Legislative Assembly, Money Bills are sent to the Council for recommendations. The Council must return its recommendations within fourteen days, allowing limited influence over financial matters.

Clause (3) – Acceptance of Recommendations:

If the Assembly accepts any Council recommendations, the Bill is deemed passed with the accepted amendments.

Clause (4) – Rejection of Recommendations:

If the Assembly rejects the Council's recommendations, the Bill is deemed passed in its original form.

Clause (5) – Automatic Passage:

If the Council does not return the Bill within fourteen days, it is deemed passed in the Assembly's original form, ensuring no delay in financial legislation.

Historical Significance:

The procedure for Money Bills in Article 198 reflects the framers’ intention to maintain legislative efficiency and prevent procedural delays in financial matters. It draws from the British parliamentary tradition, where the Lower House has supremacy in financial matters.

Legislative History:

Article 198, originally introduced as Article 173 in the Draft Constitution, was debated on 10th June, 1949. Amendments clarified timelines and the Council's limited role, ensuring alignment with democratic principles.

Debates and Deliberations:

During the Constituent Assembly debates, Dr. B. R. Ambedkar emphasized the need for a time-bound process for Money Bills, preventing undue delays. Shri T. T. Krishnamachari proposed reducing the Council's consideration period to fourteen days, ensuring timely passage. Members like Shri H. V. Kamath raised concerns about balancing efficiency with the Council's advisory role, but the majority supported the streamlined approach.

References:

• Constitution of India, Article 198.
• Constituent Assembly Debates, June 10, 1949.
• Legislative Processes in Indian States, 2021.