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Q68 (IAS/2024) Polity & Governance › Parliament › Money and finance bills Official Key

Which of the following statements are correct in respect of a Money Bill in the Parliament ? 1. Article 109 mentions special procedure in respect of Money Bills. 2. A Money Bill shall not be introduced in the Council of States. 3. The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it. 4. Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha. Select the answer using the code given below :

Result
Your answer: —  ·  Correct: C
Explanation

The correct answer is option C because statements 1, 2, and 3 are correct.

Article 109 mentions special procedure in respect of Money Bills[1], making statement 1 correct. A money bill can only be introduced in the Lok Sabha and a Money Bill shall not be introduced in the Council of States[3], confirming statement 2 is correct. The Rajya Sabha can either approve the bill or suggest changes but cannot reject it, as it cannot reject or [4]amend a money bill and can only make recommendations[5], making statement 3 correct.

However, statement 4 is incorrect. The Lok Sabha can either accept or reject all or any of the recommendations of the Rajya Sabha[5], and amendments to the bill suggested by Rajya Sabha may or may not be accepted by the Lok Sabha[6]. This means the Lok Sabha is not obligated to accept Rajya Sabha's suggestions. Therefore, only statements 1, 2, and 3 are correct, making option C the right answer.

Sources
  1. [1] Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > READ A CARTOON > p. 114
  2. [2] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
  3. [3] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 253
  4. [4] Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
  5. [5] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
  6. [6] Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
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Q. Which of the following statements are correct in respect of a Money Bill in the Parliament ? 1. Article 109 mentions special procedure i…
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10
Statement 1
Does Article 109 of the Constitution of India provide a special procedure for Money Bills in the Parliament of India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > READ A CARTOON > p. 114
Presence: 5/5
“Article 109 Special procedure in respect of Money Bills.—(1) A Money Bill shall not be introduced in the Council of States When a bill is passed by both Houses, it is sent to the President for his assent. The assent of the President results in the enactment of a bill into a law.”
Why this source?
  • Directly names Article 109 as 'Special procedure in respect of Money Bills'.
  • Begins the Article text with the rule that a Money Bill shall not be introduced in the Council of States, indicating a distinct procedure.
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
Presence: 4/5
“His/ her decision in this regard cannot be questioned in any court of law or in either House of Parliament or even the President. When a money bill is transmitted to the Rajya Sabha for recommendation and presented to the President for assent, the Speaker endorses it as a money bill. The Constitution lays down a special procedure for the passing of money bills in the Parliament. A money bill can only be introduced in the Lok Sabha and that top on the recommendation of the President. Every such bill is considered to be a government bill and can be introduced only by a minister.”
Why this source?
  • Explicitly states the Constitution lays down a special procedure for passing Money Bills in Parliament.
  • Specifies introduction rules (only in Lok Sabha, on President's recommendation), showing procedural distinctness.
Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 253
Presence: 4/5
“As pointed out earlier, this is one of the special powers of the Speaker. The following is the procedure for the passing of Money Bills in Parliament: A Money Bill shall not be introduced in the Council of States.”
Why this source?
  • Describes the procedure for passing Money Bills in Parliament and repeats that a Money Bill shall not be introduced in the Council of States.
  • Frames the limited role of the upper house, underscoring the special procedure.
Statement 2
Under the Constitution of India, can a Money Bill be introduced in the Council of States (Rajya Sabha) in the Parliament of India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
Presence: 5/5
“His/ her decision in this regard cannot be questioned in any court of law or in either House of Parliament or even the President. When a money bill is transmitted to the Rajya Sabha for recommendation and presented to the President for assent, the Speaker endorses it as a money bill. The Constitution lays down a special procedure for the passing of money bills in the Parliament. A money bill can only be introduced in the Lok Sabha and that top on the recommendation of the President. Every such bill is considered to be a government bill and can be introduced only by a minister.”
Why this source?
  • Explicitly states a money bill can only be introduced in the Lok Sabha, not the Rajya Sabha
  • Notes the Speaker endorses a bill as a Money Bill before transmission to the Rajya Sabha
  • Specifies introduction occurs on the recommendation of the President and by a minister
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
Presence: 5/5
“The ministry of women and child welfare may also be involved in it. Within the Parliament, a bill may be introduced in the Lok Sabha or Rajya Sabha by a member of the House (but often a minister responsible for the subject introduces the bill). A money bill can be introduced only in Lok Sabha. Once passed there, it is sent to the Rajya Sabha. A large part of the discussion on the bills takes place in the committees. The recommendation of the committee is then sent to the House. That is why committees are referred to as miniature legislatures.”
Why this source?
  • Directly declares a money bill can be introduced only in the Lok Sabha
  • Explains that after passage in Lok Sabha the bill is sent to the Rajya Sabha for consideration
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Unequal Status with Lok Sabha > p. 260
Presence: 5/5
“In the following matters, the powers and status of the Riljya Sabha are unequal to that of the Lok Sabha : • 1. A Money Bill can be introduced only in the Lok Sabha and not in the Rajya Sabha. • 2. The Lok Sabha cannot amend or reject a Money Bill. It should return the bill to the Lok Sabha within 14 days, either with recommendations or without recommendations. • 3. The Lok Sabha can either accept or reject all or any of the recommendations of the Rajya Sabha. In both cases, the money bill is deemed to have been passed by the two Houses. • 5.”
Why this source?
  • States as a point of unequal status that a Money Bill can be introduced only in the Lok Sabha and not in the Rajya Sabha
  • Adds the Rajya Sabha's role is limited (cannot amend/reject; returns within 14 days)
Statement 3
Under the Constitution of India, is the Rajya Sabha in the Parliament of India limited to approving a Money Bill or suggesting amendments and not empowered to reject a Money Bill?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
Presence: 5/5
“If it is a money bill, the Rajya Sabha can either approve the bill or suggest changes but cannot reject it. If it takes no action within 14 days the bill is deemed to have been passed. Amendments to the bill, suggested by Rajya Sabha, may or may not be accepted by the Lok Sabha.”
Why this source?
  • Explicitly says Rajya Sabha can approve or suggest changes but cannot reject a money bill.
  • Mentions the 14-day period after which inaction leads to the bill being deemed passed, reinforcing limited Rajya Sabha powers.
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
Presence: 5/5
“After a money bill is passed by the Lok Sabha, it is transmitted to the Rajya Sabha for its consideration. The Rajya Sabha has restricted powers with regard to a money bill. It cannot reject or amend a money bill. It can only make recommendations. It must return the bill to the Lok Sabha within 14 days, whether with or without recommendations. The Lok Sabha can either accept or reject all or any of the recommendations of the Rajya Sabha. If the Lok Sabha accepts any recommendation, the bill is then deemed to have been passed by both the Houses in the modified form.”
Why this source?
  • States Rajya Sabha has restricted powers: it cannot reject or amend a money bill and can only make recommendations.
  • Explains Lok Sabha may accept or reject Rajya Sabha's recommendations, confirming Rajya Sabha cannot unilaterally block a money bill.
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > Special Powers of Rajya Sabha > p. 110
Presence: 5/5
“Powers exercised only by the Lok Sabha: Then, there are powers that only the Lok Sabha exercises. The Rajya Sabha cannot initiate, reject or amend money bills. The Council of Ministers is responsible to the Lok Sabha and not Rajya Sabha. Therefore, Rajya Sabha can criticise the government but cannot remove it. Can you explain why? The Rajya Sabha is elected by the MLAs and not directly by the people. Therefore, the Constitution stopped short of giving certain powers to the Rajya Sabha. In a democratic form as adopted by our Constitution, the people are the final authority. By this logic, the representatives, directly elected by the people, should have the crucial powers of removing a government and controlling the finances.”
Why this source?
  • Lists powers exercised only by the Lok Sabha and asserts Rajya Sabha cannot initiate, reject or amend money bills.
  • Links this restriction to the principle of Lok Sabha's primacy in financial matters, supporting the claim of limited Rajya Sabha power.
Statement 4
Under the Constitution of India, are amendments to a Money Bill suggested by the Rajya Sabha required to be accepted by the Lok Sabha in the Parliament of India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
Presence: 5/5
“If it is a money bill, the Rajya Sabha can either approve the bill or suggest changes but cannot reject it. If it takes no action within 14 days the bill is deemed to have been passed. Amendments to the bill, suggested by Rajya Sabha, may or may not be accepted by the Lok Sabha.”
Why this source?
  • Explicitly says Rajya Sabha can suggest changes but cannot reject a money bill.
  • Directly states amendments/recommendations by Rajya Sabha 'may or may not be accepted by the Lok Sabha.'
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 248
Presence: 5/5
“After a money bill is passed by the Lok Sabha, it is transmitted to the Rajya Sabha for its consideration. The Rajya Sabha has restricted powers with regard to a money bill. It cannot reject or amend a money bill. It can only make recommendations. It must return the bill to the Lok Sabha within 14 days, whether with or without recommendations. The Lok Sabha can either accept or reject all or any of the recommendations of the Rajya Sabha. If the Lok Sabha accepts any recommendation, the bill is then deemed to have been passed by both the Houses in the modified form.”
Why this source?
  • States Rajya Sabha cannot amend or reject a money bill and can only make recommendations.
  • Makes clear the Lok Sabha 'can either accept or reject all or any of the recommendations' of Rajya Sabha.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Finance Bill > p. 149
Presence: 4/5
“Appropriation and Finance Bills are Money Bills. These bills are sent to the Rajya Sabha for passing but it is on the Lok Sabha whether to accept any recommendations of the Rajya Sabha or not. Whether Lok Sabha accepts the recommendations of the Rajya Sabha or not the Bills are deemed to be passed by both the houses. During the Budget, to change direct taxes, amendment in the particular Act is required through the Finance Act.”
Why this source?
  • Notes Appropriation and Finance Bills are money bills sent to Rajya Sabha for consideration.
  • Specifies that it is for the Lok Sabha to accept or reject any recommendations made by the Rajya Sabha.
Pattern takeaway: UPSC loves the 'Parliament' chapter. They focus on procedural nuances where the two Houses differ. The trap is usually a subtle swap of 'May' vs 'Shall' or 'Can' vs 'Cannot'. Precision in constitutional language is non-negotiable here.
How you should have studied
  1. [THE VERDICT]: Absolute Sitter. Direct lift from Laxmikanth (Ch: Parliament) and NCERT Class XI (Indian Constitution at Work, Ch: Legislature).
  2. [THE CONCEPTUAL TRIGGER]: The 'Legislative Procedure' theme, specifically the asymmetry of power between Lok Sabha and Rajya Sabha regarding Financial Administration.
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Money Bill Trinity': Article 109 (Procedure), Article 110 (Definition), Article 111 (Assent). Contrast this with Financial Bill Type I (Art 117(1)) and Type II (Art 117(3)). Note the Joint Sitting applicability (Art 108)—allowed for Financial Bills, banned for Money Bills.
  4. [THE STRATEGIC METACOGNITION]: The examiner tests 'Modal Verbs' in Polity. Statement 4 uses 'have to be accepted' (compulsion). In Money Bills, the Lok Sabha's will is supreme. Always check if a statement implies the Rajya Sabha can 'dictate' terms on money; if yes, it's false.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Article 109 — Special procedure for Money Bills
💡 The insight

Article 109 is the constitutional provision that designates a distinct procedure for Money Bills in Parliament.

High-yield for legislative procedure questions; directly tests knowledge of constitutional article numbering and special financial procedures. Connects to questions on bill classification and passage in Parliament, and enables elimination in MCQs about which Article covers Money Bill procedures.

📚 Reading List :
  • Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > READ A CARTOON > p. 114
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 253
🔗 Anchor: "Does Article 109 of the Constitution of India provide a special procedure for Mo..."
📌 Adjacent topic to master
S1
👉 Money Bills must be introduced only in Lok Sabha
💡 The insight

The rule that Money Bills cannot be introduced in the Council of States and must originate in the House of the People is central to the special procedure.

Crucial for UPSC questions on differences between Houses and bill origination; links to broader topics like parliamentary powers and legislative checks. Useful for scenario questions asking which house can introduce or amend financial legislation.

📚 Reading List :
  • Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > READ A CARTOON > p. 114
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 253
🔗 Anchor: "Does Article 109 of the Constitution of India provide a special procedure for Mo..."
📌 Adjacent topic to master
S1
👉 Limited role of Rajya Sabha/Legislative Councils on Money Bills
💡 The insight

The upper house has restricted powers (recommendation only, time-limited) when a Money Bill is transmitted to it.

Important for comparative questions on bicameral powers and financial supremacy of Lok Sabha; aids in answering questions on amendment/rejection powers and timelines for Money Bills. Connects to state legislature parallels where councils have similar restricted powers.

📚 Reading List :
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 259
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 33: State Legislature > Money Bills > p. 343
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 253
🔗 Anchor: "Does Article 109 of the Constitution of India provide a special procedure for Mo..."
📌 Adjacent topic to master
S2
👉 Venue of Introduction of Money Bills
💡 The insight

Money Bills must be introduced only in the Lok Sabha and cannot be introduced in the Rajya Sabha.

High-yield constitutional detail frequently tested on legislative procedure and division of powers between Houses. Connects to distinctions between Money Bills and Ordinary Bills and to questions about parliamentary supremacy and checks on finance. Mastering this helps answer procedural and comparative questions on Union and state legislatures.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
  • Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 5: LEGISLATURE > HOW DOES THE PARLIAMENT MAKE LAWS? > p. 113
🔗 Anchor: "Under the Constitution of India, can a Money Bill be introduced in the Council o..."
📌 Adjacent topic to master
S2
👉 Speaker's Certification of Money Bills
💡 The insight

The Speaker of the Lok Sabha certifies a bill as a Money Bill before it is transmitted to the Rajya Sabha, and that certification is final.

Important for questions on Article 110 and the role of presiding officers in legislative procedure; ties into debates on judicial review and finality of constitutional functionaries. Useful for questions about institutional roles and limits on Parliament's Houses.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Money Bill. > p. 247
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 12: The Union Legislature > p. 254
🔗 Anchor: "Under the Constitution of India, can a Money Bill be introduced in the Council o..."
📌 Adjacent topic to master
S2
👉 Rajya Sabha's Limited Role & 14-day Recommendation Period
💡 The insight

The Rajya Sabha cannot amend or reject Money Bills and must return them to the Lok Sabha within 14 days, with or without recommendations.

Crucial for understanding bicameral limits and the asymmetry between Lok Sabha and Rajya Sabha; helps answer questions about legislative checks, federal balance, and special procedures for financial legislation. Frequently appears in comparisons of Union vs state legislative procedures.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Unequal Status with Lok Sabha > p. 260
  • Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Unequal Status with Lok Sabha > p. 260
🔗 Anchor: "Under the Constitution of India, can a Money Bill be introduced in the Council o..."
📌 Adjacent topic to master
S3
👉 Rajya Sabha's limited role in Money Bills
💡 The insight

Defines that Rajya Sabha cannot reject a Money Bill and can only recommend changes or approve it.

High-yield for questions on legislative procedure and powers of Parliament; connects with topics on bicameralism and checks on financial legislation. Mastery helps answer direct-knowledge and comparison questions about house-specific powers.

📚 Reading List :
  • 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 > Money Bill. > p. 248
🔗 Anchor: "Under the Constitution of India, is the Rajya Sabha in the Parliament of India l..."
🌑 The Hidden Trap

The 'Presidential Veto' Trap: While the President can withhold assent to a Money Bill (Absolute Veto), he CANNOT return it for reconsideration (Suspensive Veto). This is because it is introduced with his prior permission. This is the next logical question in the sequence.

⚡ Elimination Cheat Code

The 'Purse String' Logic: In any democracy, the directly elected house controls the money. Statement 4 claims the Lok Sabha *must* accept RS amendments. This violates the core principle of Lok Sabha supremacy in finance. If RS could force amendments, it would hold the government hostage. Thus, Statement 4 is logically impossible.

🔗 Mains Connection

Mains GS-2 (Parliamentary System): This procedural limitation on the Rajya Sabha highlights the principle of 'No Taxation Without Representation'. Since RS is indirectly elected, it cannot control the public purse. This is a key argument in debates about the 'Federal vs Unitary' bias of the Constitution.

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SIMILAR QUESTIONS

CAPF · 2014 · Q42 Relevance score: 3.89

Which of the following statements related to Money Bills is not correct ?

NDA-II · 2016 · Q97 Relevance score: 3.83

Which one of the following statements about Money Bill is correct ?

CDS-II · 2013 · Q115 Relevance score: 3.82

Which of the following statements is not correct ?

CDS-II · 2022 · Q120 Relevance score: 3.56

Which one of the following statements about Money Bill is not correct?

IAS · 2000 · Q59 Relevance score: 3.51

Which one of the following statements about a Money Bill is not correct ?