Part VI: The State Legislature

Article 199: Definition of Money Bills

Original Article:

Article 199. Definition of "Money Bills":

(1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely:

(a) the imposition, abolition, remission, alteration or regulation of any tax;

(b) the regulation of the borrowing of money or the giving of any guarantee by the State, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the State;

(c) the custody of the Consolidated Fund or the Contingency Fund of the State, the payment of moneys into or the withdrawal of moneys from any such Fund;

(d) the appropriation of moneys out of the Consolidated Fund of the State;

(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of the State, or the increasing of the amount of any such expenditure;

(f) the receipt of money on account of the Consolidated Fund of the State or the public account of the State or the custody or issue of such money; or

(g) any matter incidental to any of the matters specified in sub-clauses (a) to (f).

(2) A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

(3) If any question arises whether a Bill introduced in the Legislature of a State which has a Legislative Council is a Money Bill or not, the decision of the Speaker of the Legislative Assembly of such State thereon shall be final.

(4) There shall be endorsed on every Money Bill when it is transmitted to the Legislative Council under Article 198, and when it is presented to the Governor for assent under Article 200, the certificate of the Speaker of the Legislative Assembly signed by him that it is a Money Bill.

Explanations:

Article 199 of the Indian Constitution provides a clear definition of what constitutes a Money Bill. It outlines the specific financial matters that qualify a Bill as a Money Bill, the exclusions, and the final authority of the Speaker in determining its status. This ensures clarity and uniformity in the legislative process, particularly for financial legislation.

Clause-by-Clause Breakdown:

Clause (1) – Matters Included in a Money Bill:

This clause lists the financial matters that define a Money Bill, including taxation, state borrowing, custody of state funds, and appropriation of funds. Any Bill dealing exclusively with these matters qualifies as a Money Bill.

Clause (2) – Exclusions from Money Bills:

Bills that impose fines, fees, or taxes by local bodies do not qualify as Money Bills, ensuring that the definition is strictly limited to state-level financial matters.

Clause (3) – Speaker’s Authority:

The Speaker of the Legislative Assembly has the final authority to decide whether a Bill is a Money Bill, and this decision cannot be challenged.

Clause (4) – Certification of Money Bills:

Every Money Bill must carry a certification from the Speaker, confirming its status as a Money Bill, during its transmission and presentation stages.

Historical Significance:

Article 199 draws from the British parliamentary system, where financial legislation is subject to specific rules to prevent delays and disputes. By clearly defining Money Bills and centralizing authority with the Speaker, this Article ensures smooth legislative processes for financial matters.

Legislative History:

Article 199 was originally presented as Article 174 in the Draft Constitution. It was debated on June 10, 1949, with discussions emphasizing the need for a precise definition of Money Bills to prevent conflicts between legislative houses.

Debates and Deliberations:

During the debates, Dr. B. R. Ambedkar highlighted the importance of clearly defining Money Bills to ensure that financial legislation proceeds without undue delays or disputes. Shri H. V. Kamath raised concerns about potential misuse of the Speaker’s authority but acknowledged the necessity of a streamlined process for financial matters. The provision for Speaker’s final authority was retained to ensure decisiveness in financial legislation.

References:

• Constitution of India, Article 199.
• Constituent Assembly Debates, June 10, 1949.
• Comparative Legislative Processes, 2022.