1) Which of the following is/are true regarding Financial Bill (I)?
1) Financial bill (I) contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110.
2) Financial bill (I) can only be introduced in the Lok Sabha on the recommendation of the President but can be rejected by the Rajya Sabha.
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
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Answer
Explanation
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ANSWER: Only 2
Explanation:
- A financial bill (I) is a bill that contains not only any or all the matters mentioned in Article 110, but also other matters of general legislation. For instance, a bill that contains a borrowing clause, but does not exclusively deal with borrowing.
- In two respects, a financial bill (I) is similar to a money bill—(a) both of them can be introduced only in the Lok Sabha and not in the Rajya Sabha, and (b) both of them can be introduced only on the recommendation of the president.
- In all other respects, a financial bill (I) is governed by the same legislative procedure applicable to an ordinary bill. Hence, it can be either rejected or amended by the Rajya Sabha (except that an amendment other than for reduction or abolition of a tax cannot be moved in either House without the recommendation of the president).
- A financial bill (II) contains provisions involving expenditure from the Consolidated Fund of India, but does not include any of the matters mentioned in Article 110.
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2) How many types of financial bills are there?
a. 3
b. 2
c. 4
d. 1
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Answer
Explanation
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ANSWER: 3
Explanation:
- Financial bills are those bills that deal with fiscal matters, that is, revenue or expenditure. However, the Constitution uses the term ‘financial bill’ in a technical sense.
- Financial bills are of three kinds:
1. Money bills—Article 110
2. Financial bills (I)—Article 117 (1)
3. Financial bills (II)—Article 117 (3)
- This classification implies that money bills are simply a species of financial bills. Hence, all money bills are financial bills but all financial bills are not money bills.
- Only those financial bills are money bills which contain exclusively those matters which are mentioned in Article 110 of the Constitution.
- These are also certified by the Speaker of Lok Sabha as money bills. The financial bills (I) and (II), on the other hand, have been dealt with in Article 117 of the Constitution.
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