UPSC Prelims 2015 Q27: Indian Polity – Parliament & State Legislatures
Consider the following statements:
1. The Rajya Sabha has no power either to reject or to amend a Money Bill.
2. The Rajya Sabha cannot vote on the Demands for Grants.
3. The Rajya Sabha cannot discuss the Annual Financial Statement.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 1 and 2 only
- (c) 2 and 3 only
- (d) 1, 2 and 3
Answer: (b) 1 and 2 only
Explanation
Financial powers of the Rajya Sabha
| Statement | Verdict | Fact |
|---|---|---|
| 1. The Rajya Sabha has no power either to reject or to amend a Money Bill | Correct | It can only make recommendations within 14 days (Article 109) |
| 2. The Rajya Sabha cannot vote on the Demands for Grants | Correct | Voting on grants is the exclusive power of the Lok Sabha (Article 113) |
| 3. The Rajya Sabha cannot discuss the Annual Financial Statement | Incorrect | It can discuss the Budget |
The two Houses compared on finance:
| Matter | Lok Sabha | Rajya Sabha |
|---|---|---|
| Money Bill | Introduced and passed here | Recommendations only |
| Demands for Grants | Votes | No vote |
| Budget | Discusses | Discusses |
| Financial Bill (not a Money Bill) | Equal power | Equal power, except introduction |
Answer: (b) 1 and 2 only.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is also true: it cannot vote on Demands for Grants.
- (b) CORRECT. The Rajya Sabha cannot amend or reject a Money Bill or vote on Demands for Grants.
- (c) Incorrect. Statement 3 is false; the Rajya Sabha can discuss the Budget.
- (d) Incorrect. Statement 3 is false; discussion of the Annual Financial Statement is allowed.
Key point
Rajya Sabha on finance: only recommendations on Money Bills within 14 days (Article 109); no vote on Demands for Grants (Article 113); can discuss the Budget.
Remember
Rajya Sabha: discuss Budget, yes; vote on grants, no.
Common mistakes
- Thinking the Rajya Sabha has no role at all in the Budget.
- Forgetting the 14-day limit on Money Bills.
- Confusing a Money Bill with other Financial Bills, where both Houses are equal.
Exam tip
Rajya Sabha can talk about money, but cannot vote on it.
Sources
- Constitution of India — Articles 109, 112 and 113
- M. Laxmikanth — Indian Polity, chapter on Parliament