With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:
- When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
- When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
- 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: Option A
A Finance Bill is a type of Money Bill as defined in Article 110 (a) of the Constitution.
Finance Bills deal with government proposals for levying new taxes, modifying existing tax structures, or continuing existing tax structures beyond the period approved by Parliament. These are introduced as part of the Annual Financial Statement (Budget) under Article 112.
The Finance Bill is accompanied by a memorandum explaining its provisions and can only be introduced in the Lok Sabha.
The Rajya Sabha can only recommend amendments; it cannot amend or reject the bill. The bill must be passed by Parliament within 75 days of its introduction.
Therefore, statement 1 is not correct, and statement 2 is correct.
Since a Finance Bill (specifically referring to those that are Money Bills under Article 110) is treated as a Money Bill, no joint sitting of the two houses is allowed under Article 108.
Therefore, statement 3 is not correct.
There are two categories of Finance Bills under Article 117 (1) and Article 117 (2), called Finance Bill (I) and Finance Bill (II).
Financial Bill (I) includes subjects stated in Article 110 and other legislative provisions.
Financial Bill (I) is similar to a Money Bill because both can only originate in the Lok Sabha and can only be introduced on the President's recommendation.
However, a Financial Bill (I) follows the same parliamentary procedures as any ordinary bill.
Hence, only one statement is correct.
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