Question map
Consider the following statements : 1. The Rajya Sabha has no power either to reject or to amend a Money Bill. 2. The Rajya Sabha cannot vote on the Demands for Grants. 3. The Rajya Sabha cannot discuss the Annual Financial Statement. Which of the statements given above is/are correct?
Explanation
**Explanation:**
Statement 1 is correct: The Rajya Sabha cannot reject or amend a money bill.[1] It can only make recommendations and must return the bill to the Lok Sabha within 14 days, whether with or without recommendations.[1]
Statement 2 is correct: Though the Rajya Sabha does not vote on the Demands for Grants, a new practice has been started since 1970, to discuss the working of few selected Ministries every year.[2] This confirms that the Rajya Sabha cannot vote on Demands for Grants.
Statement 3 is incorrect: The Annual Budget of the Government of India has to be laid before the Rajya Sabha as well and members have the right to discuss the same as in the Lok Sabha.[3] The Annual Financial Statement is the formal name for the budget, and the Rajya Sabha has the right to discuss it.
Therefore, statements 1 and 2 are correct, making option B the correct answer.
Sources- [1] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
- [2] https://cms.rajyasabha.nic.in/UploadedFiles/ElectronicPublications/RS_contribution_2022.pdf
- [3] https://cms.rajyasabha.nic.in/UploadedFiles/ElectronicPublications/RS_contribution_2022.pdf
PROVENANCE & STUDY PATTERN
Full viewThis is a foundational 'Sitter' from the static portion of Indian Polity. It tests the core constitutional asymmetry between the Lok Sabha and Rajya Sabha regarding financial powers. If you missed this, your reading of the 'Parliament' chapter in Laxmikanth or NCERT is superficial; these are non-negotiable basic facts.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Does the Rajya Sabha under the Constitution of India have the power to reject a Money Bill?
- Statement 2: Does the Rajya Sabha under the Constitution of India have the power to amend a Money Bill?
- Statement 3: Does the Rajya Sabha under the Constitution of India have the power to vote on the Demands for Grants?
- Statement 4: Does the Rajya Sabha under the Constitution of India have the power to discuss the Annual Financial Statement (Union Budget)?
- Explicitly states Rajya Sabha has restricted powers: it cannot reject or amend a Money Bill.
- Says Rajya Sabha can only make recommendations and must return the bill within 14 days.
- Notes Lok Sabha alone decides whether to accept or reject Rajya Sabha's recommendations.
- Specifically lists that Rajya Sabha cannot initiate, reject or amend money bills.
- Explains constitutional rationale linking financial control to Lok Sabha's primacy.
- States Rajya Sabha can approve or suggest changes but cannot reject a money bill.
- Adds that if Rajya Sabha takes no action within 14 days the bill is deemed passed.
- Explicitly states Rajya Sabha has restricted powers and 'cannot ... amend a money bill'.
- Describes Rajya Sabha role limited to making recommendations and returning bill within 14 days.
- States clearly that Rajya Sabha 'cannot initiate, reject or amend money bills'.
- Explains constitutional rationale linking financial control to Lok Sabha's primacy.
- Says Rajya Sabha can 'approve the bill or suggest changes but cannot reject it', implying only recommendatory changes not amendatory power.
- Notes that if Rajya Sabha takes no action within 14 days the bill is deemed passed, reinforcing limited role.
- Explicitly states the Rajya Sabha does not vote on Demands for Grants.
- Frames Rajya Sabha's role as deliberative rather than voting on financial demands, directly addressing the constitutional power questioned.
- Describes that Demands for Grants are taken up in the Lok Sabha and voted upon, implying the Lok Sabha (not Rajya Sabha) exercises the voting power.
- Shows procedural practice reinforcing that voting on Demands for Grants happens in the Lok Sabha.
States a rule that 'voting of demands for grants is the exclusive privilege of the Lok Sabha' and contrasts Rajya Sabha's role.
A student could treat this as a general rule to check the Constitution or Rules of Procedure for explicit allocation of voting power on demands to Lok Sabha only.
Explains that in Rajya Sabha there is only a general discussion on the budget and it 'does not vote on the Demand for Grants'.
Use this pattern (discussion-only role) and compare it with Lok Sabha practice (voting) across constitutional provisions to infer institutional limits on Rajya Sabha.
Gives a constitutional rationale: Lok Sabha has superior financial/control powers because it is directly elected; Rajya Sabha is thereby denied certain money powers.
A student could combine this principle with the specific budgeting practices to reason that voting on grants would likely be among those restricted to Lok Sabha.
Notes 'Vote-on-Account' and says the Constitution has authorized the Lok Sabha to make grants in advance, highlighting a financial power explicitly ascribed to Lok Sabha.
Apply this example of a Lok Sabha financial prerogative to test whether other grant-related votes (Demands for Grants) are similarly allocated.
Describes other kinds of grants (excess grants, vote of credit, exceptional grant) being 'voted by the Lok Sabha' indicating a pattern that voting on financial appropriations is a Lok Sabha function.
Extend this pattern to hypothesize that Demands for Grants, as a core appropriation exercise, would follow the same Lok Sabha-voting rule and verify against procedural/constitutional text.
- Explicitly states the Annual Budget must be laid before the Rajya Sabha.
- States Rajya Sabha members have the right to discuss the Budget though they cannot vote on Demands for Grants.
- Cites Article 112 which requires the President to lay the Annual Financial Statement before both Houses of Parliament.
- Implies Rajya Sabha, being one of the 'both Houses', receives the Annual Financial Statement and can therefore consider it.
Explicitly states that after the budget speech the budget is laid before the Rajya Sabha which can only discuss it and has no power to vote on the demands for grants.
A student could combine this with Article 112 wording (that budget is 'Annual Financial Statement') to infer Rajya Sabha's discussion role applies to that document.
Repeats the rule that Rajya Sabha may discuss the budget but cannot vote on demands for grants, indicating a consistent procedural pattern.
Use this repeated procedural pattern to check parliamentary rules/standing orders for discussion schedules in Rajya Sabha.
Says in Rajya Sabha there is only a General Discussion on the budget and it does not vote on Demands for Grants; also notes estimates charged on Consolidated Fund can be discussed in either House.
A student could cross-reference which parts of the Annual Financial Statement are 'demands for grants' versus 'charged' to see what Rajya Sabha discussion would cover.
Explains presentation procedure: budget presented in Lok Sabha, then 'presented in the Rajya Sabha', and that budget discussion occurs in two stages including general discussion.
Combine this procedure with the timing (presentation in Rajya Sabha after Lok Sabha) to infer scope and limits of Rajya Sabha discussion on the Annual Financial Statement.
Notes that so much of the estimates as relate to other expenditure shall be submitted as demands for grants to the House of the People, and that in practice presentation is followed by a general discussion in both Houses.
A student could use this to distinguish what items require Lok Sabha assent and therefore assess which parts Rajya Sabha discussion might be limited to.
- Bullet 1. [THE VERDICT]: Sitter. Direct hit from Laxmikanth (Chapter: Parliament > Money Bill & Budget in Parliament) and NCERT Class XI (Legislature).
- Bullet 2. [THE CONCEPTUAL TRIGGER]: 'Bicameralism & Financial Accountability'. The specific theme is the 'Unequal Status of Rajya Sabha' in financial matters.
- Bullet 3. [THE HORIZONTAL EXPANSION]: Memorize the specific exclusions: (1) Cut Motions (LS only), (2) Vote on Account (LS only), (3) Charged Expenditure (Discussed by both, Voted by neither), (4) Finance Bill Category I (Intro in LS, but RS can reject/amend), (5) Finance Bill Category II (Same as Ordinary Bill).
- Bullet 4. [THE STRATEGIC METACOGNITION]: Do not just memorize 'RS is weak'. Map the Budget Cycle (Presentation -> General Discussion -> Scrutiny -> Voting on Grants -> Appropriation -> Finance Bill). Mark exactly where RS enters and exits. RS enters at 'General Discussion' and exits before 'Voting on Grants'.
All provided references emphasize that Rajya Sabha cannot reject or amend money bills and only has a recommendatory role.
High-yield for polity questions: explains bicameral asymmetry on financial matters and is frequently tested in UPSC prelims/mains; links to executive responsibility and Lok Sabha primacy. Prepare by memorising the limited functions and contrasts with ordinary/financial bills, and practise answer framing for constitutional rationale.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
- Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > Special Powers of Rajya Sabha > p. 110
Multiple references mention the constitutionally fixed 14-day period for Rajya Sabha to return a money bill, after which it is deemed passed.
Memorable procedural fact often asked in objective and descriptive questions; connects to procedures for bill passage and differences between Money and Finance Bills. Learn via timeline charts and compare with other legislative timeframes.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
- Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
References note the Speaker certifies a bill as a Money Bill and that this certification affects Rajya Sabha's consultative role.
Crucial for understanding legal/constitutional finality on bill classification — often appears in case-law or procedure-based questions. Study Article 110-related provisions, the Speaker's role, and implications for legislative disputes.
- Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 254
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
Multiple references assert Rajya Sabha cannot amend (or reject/initiate) Money Bills and is limited to recommendations.
High-yield constitutional fact often tested in UPSC polity questions about bicameral differences and financial control; connects to topics on parliamentary powers, confidence & budgetary control. Learn authoritative lines from the Constitution (Article 110 and procedure) and practice scenario questions distinguishing Money vs other Bills.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
- Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > Special Powers of Rajya Sabha > p. 110
Sources state Rajya Sabha must return a Money Bill within 14 days and may only make recommendations, which Lok Sabha may accept or reject.
Procedural detail frequently used in application/MCQ and mains answers about legislative process; helps answer timing, deemed-passage, and conflict-resolution questions. Memorise timelines and the Lok Sabha's finality on acceptance to handle procedural scenario items.
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
- Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Unequal Status with Lok Sabha > p. 260
Evidence notes Money Bills are certified (Article 110) by the Speaker and can be introduced only in Lok Sabha, underscoring Lok Sabha's primacy.
Critical for questions on legislative competence and constitutional safeguards; links to judicial review and controversies over classification. Study Article 110 provisions, Speaker's role, and case-law/instances where certification was contested.
- Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 254
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Unequal Status with Lok Sabha > p. 260
Multiple references state that voting of demands for grants is the exclusive privilege of the Lok Sabha and that Rajya Sabha has no power to vote them.
High-yield for questions on parliamentary financial powers: connects directly to budgetary procedure, appropriation and control of public finances. Frequently tested in mains and prelims when asking about differences between the two Houses' powers. Prepare by memorising constitutional/procedural distinctions and practising application-based MCQs.
- Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Stages in Enactment > p. 253
- Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 253
The 'Guillotine' Procedure. Since RS cannot vote on Demands for Grants, the procedure of 'Guillotine' (grouping undiscussed demands for voting on the last day) is an exclusive practice of the Lok Sabha. A future question may ask if the Guillotine is applied in the Rajya Sabha.
Apply the 'Responsibility Principle'. The Govt is responsible ONLY to the Lok Sabha (Art 75). Financial power (stopping money) is the ultimate power to remove a Govt. Therefore, RS cannot have the power to VOTE or REJECT money, as that would imply a power to bring down the Govt. However, 'Discussion' does not threaten the Govt's survival, so Statement 3 (saying RS cannot discuss) defies the logic of a deliberative democracy.
Mains GS-2 (Federalism vs Democracy): The weakness of the Rajya Sabha (Council of States) in finance highlights that India prioritizes 'People's Representation' (Lok Sabha) over 'Federal Representation' (Rajya Sabha) in money matters, unlike the US Senate which has equal financial powers.