UPSC Prelims 2018 Q31: Indian Polity – Parliament & State Legislatures
- (a) 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.
- (b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
- (c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
- (d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.
Answer: (c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
Explanation
Money Bill - Which Statement is NOT Correct?
The question asks which is NOT correct about Money Bills under Article 110 of the Constitution.
| Option | Claim | Article 110? | Verdict |
|---|---|---|---|
| (a) Imposition/abolition/alteration of tax | YES | Art. 110(1)(a) | Correct |
| (b) Custody of Consolidated Fund / Contingency Fund | YES | Art. 110(1)(c) | Correct |
| (c) Appropriation of moneys out of the Contingency Fund of India | NO | Art. 110(1)(d) speaks of appropriation from the Consolidated Fund of India, NOT Contingency Fund | INCORRECT (this is the answer) |
| (d) Regulation of borrowing / guarantees by GoI | YES | Art. 110(1)(b) | Correct |
Key distinction: Money Bills concern the Consolidated Fund of India (Art. 266). The Contingency Fund (Art. 267) is meant for unforeseen expenditure and advances from it require subsequent approval by Parliament through a supplementary demand - but it is NOT the subject of a Money Bill.
Answer: (c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India - this is the NOT-correct statement.
Answer: (c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
Why each option is right or wrong
- (a) Incorrect. (this is a valid Money Bill matter per Art. 110(1)(a)) - so it is NOT the answer to a 'which is NOT correct' question.
- (b) Incorrect. As the answer - Art. 110(1)(c) does mention custody of Consolidated / Contingency Fund; this is a valid Money Bill matter.
- (c) CORRECT. (as the not-correct statement). Money Bills concern the Consolidated Fund of India, not the Contingency Fund - so this option misstates Art. 110.
- (d) Incorrect. As the answer - regulation of borrowing/guarantees IS covered under Art. 110(1)(b).
Key point
Art. 110 checklist: Tax, borrowing/guarantees, custody of Consolidated/Contingency Funds, appropriation from Consolidated Fund (NOT Contingency), Consolidated Fund receipts/audit, incidental matters. Money Bills = Consolidated Fund; Contingency Fund is a separate mechanism.
Remember
A Money Bill under Article 110 deals with matters like taxation, borrowing, custody of funds, and appropriation from the Consolidated Fund of India. The option stating that Money Bills concern appropriation from the Contingency Fund of India is incorrect - the Contingency Fund is governed by Article 267 and is used for unforeseen expenditure, not through Money Bills.
Common mistakes
- Confusing the Consolidated Fund (Art. 266 - the main government kitty) with the Contingency Fund (Art. 267 - Presidential emergency reserve).
- Assuming all fund-related bills are Money Bills - only those meeting Art. 110 criteria qualify. Financial Bills (Art. 117) are broader.
- Missing that the Speaker's decision on whether a Bill is a Money Bill is final under Art. 110(3).
Exam tip
Fund architecture: Consolidated Fund (Art. 266) = main receipts + expenditure. Contingency Fund (Art. 267) = emergency corpus, at Presidential disposal. Public Account (Art. 266(2)) = trust money like PPF, small savings.
Sources
- Constitution of India - Articles 110, 266, 267
- M. Laxmikanth - Indian Polity (Chapter on Parliament)