UPSC Prelims 2004 Q57: Indian Polity – Parliament & State Legislatures
With reference to Indian Parliament,
which one of the following is not correct?
- (a) The Appropriation Bill must be passed by both the Houses of Parliament before it can be enacted into law
- (b) No money shall be withdrawn from the Consolidated Fund of India except under the appropriation made by the Appropriation Act
- (c) Finance Bill is required for proposing new taxes but no another Bill/Act is required for making changes in the rates of taxes which are already under operation
- (d) No Money Bill can be introduced except on the recommendation of the President
Answer: (a) The Appropriation Bill must be passed by both the Houses of Parliament before it can be enacted into law
Explanation
Money bills, Appropriation Bill and Finance Bill
| Statement | Verdict |
|---|---|
| a. Appropriation Bill must be passed by both Houses | Not correct — it is a Money Bill; Rajya Sabha may only return it with recommendations within 14 days, and it is deemed passed |
| b. No money withdrawn from the Consolidated Fund except by an Appropriation Act | Correct — Article 114 |
| c. Finance Bill proposes new taxes, no other Bill needed to change rates | Correct |
| d. Money Bill only on the President's recommendation | Correct — Article 117 |
Statement (a) is the one that is not correct: for a Money Bill such as the Appropriation Bill, the Rajya Sabha's passage is not required, since the Lok Sabha's will prevails.
Answer: (a) The Appropriation Bill must be passed by both the Houses of Parliament before it can be enacted into law.
Why each option is right or wrong
- (a) CORRECT. Rajya Sabha's passage is not required for a Money Bill, so this statement is not correct.
- (b) Incorrect. Article 114 says exactly this.
- (c) Incorrect. Changes in rates are made through the Finance Bill itself.
- (d) Incorrect. A Money Bill needs the President's recommendation.
Key point
Money Bill: introduced only in Lok Sabha; Rajya Sabha has 14 days to recommend; Lok Sabha may reject.
Remember
Rajya Sabha has only recommendatory powers over a Money Bill.
Common mistakes
- Believing the Rajya Sabha must pass a Money Bill.
- Mixing Article 114 with Article 112.
- Reading the question as asking for a correct statement.
Exam tip
Rajya Sabha cannot reject or amend a Money Bill.
Sources
- Constitution of India — Articles 109, 114 and 117
- M. Laxmikanth — Indian Polity (Parliament)