1. When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill
2. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
3. In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill.
How many of the above statements are correct?
Correct Answer: (b) Only two
Solution:Financial bills, in a technical sense, are those bills that deal with fiscal matters, that is, revenue or expenditure, and are generally of three kinds: 1. Money bills-Article 110, 2. Financial bills (1)-Article 117 (1) 3. Financial bills (11)-Article 117 (3). But the Constitution, under Article 109, provides a special procedure in respect of Money Bills and article 110 defines the "Money Bills". The Rajya Sabha has restricted powers regarding a money bill. It cannot reject or amend a money bill. It can only make the recommendations and it must return the bill to the Lok Sabha within 14 days, whether with or without recommendations A financial bill (1) is similar to a money bill in two respects. Both of them can be introduced only in the Lok Sabha and not in the Rajya Sabha, and both of them can be introduced only on the recommendation of the President. In all other respects, a financial bill (1) is governed by the same legislative procedure applicable to an ordinary bill. Hence, it can be either rejected or amended by the Rajya Sabha. Hence statement 1 and statement 2 is correct. No joint sitting of the two houses is allowed with regard to a money bill under Article 108. However Financial bills (1) and Financial bills (11) are governed by the same legislative procedure applicable to an ordinary bill, the President may (not necessarily) summon a joint sitting of the two Houses to resolve the deadlock. Hence, statement 3 is not correct.
