Question

UPSC Prelims 2018 Question:

Regarding Money Bill, which of the following statements is not correct

  1. 1. A bill shall be deemed to be a Money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.
  2. 2. A Money Bill has provisions for the custody of the consolidated fund of India or the contingency fund of India.
  3. 3. A Money Bill is concerned with the appropriation of money out of the contingency fund of India.
  4. 4. A Money Bill deals with the regulation of borrowing of money or giving any guarantee by the government of India.

Answer (Detailed Solution Below)

Option 3: A Money Bill is concerned with the appropriation of money out of the contingency fund of India.

Detailed Solution

Explanation:

  • As per Article 110 of the Indian Constitution, 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
    • the imposition, abolition, remission, alteration or regulation of any tax
    • the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India
    • the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund
    • the appropriation of money out of the Consolidated Fund of India (and not Contingency Fund of India). 
    • the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure
    • the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State.

Therefore, option (3) is the answer.

Subject: Polity | Parliament

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