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UPSC Prelims 2023 Q37: Indian Polity – Parliament & State Legislatures

UPSC Prelims 2023, General Studies Paper I · Indian Polity

With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements: 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?
  1. (a) Only one
  2. (b) Only two
  3. (c) All three
  4. (d) None

Answer: (b) Only two

Explanation

Finance Bill vs Money Bill — Parliamentary Powers

StatementClaimVerdictCorrect Position
1Rajya Sabha can amend or reject a Finance BillTRUEA Finance Bill (not a Money Bill) is an Ordinary Bill for the purposes of inter-house disagreement. Rajya Sabha has full powers to amend or reject it — it goes through the normal bicameral process.
2Rajya Sabha cannot amend or reject a Money Bill; can only recommendTRUEUnder Article 110, Money Bills are sent to Rajya Sabha for recommendations only. Rajya Sabha cannot amend or reject — Lok Sabha may accept or reject recommendations. This is explicitly stated in Art 109.
3No joint sitting for Money Bill, but joint sitting needed for Finance BillFALSEJoint sitting under Article 108 applies to Ordinary Bills (deadlock between houses). Finance Bills that are not Money Bills = Ordinary Bills = joint sitting possible. But Money Bills have NO joint sitting. The statement says 'joint sitting BECOMES NECESSARY for Finance Bill' — this is not accurate; it is POSSIBLE (if there's a deadlock) not automatically necessary.

Statements 1 and 2 correct → Only two.

Answer: (b) Only two.

Why each option is right or wrong

Key point

Money Bill: RS can only RECOMMEND (Art 109). Finance Bill: RS can AMEND or REJECT (ordinary bill procedure). Joint sitting: possible for Finance Bill deadlock but not 'necessary.' Joint sitting: IMPOSSIBLE for Money Bill. Stmts 1+2 correct, Stmt 3 wrong.

Remember

Rajya Sabha can amend or reject a Finance Bill but can only make recommendations on a Money Bill. Joint sitting is possible (not necessarily required) for Finance Bills in case of deadlock — but there is never a joint sitting for Money Bills.

Common mistakes

Exam tip

Money Bill = RS has advisory role only (no amendment, no rejection, only recommendations). Finance Bill = full bicameral. Joint sitting = possible for Finance Bill if deadlock, IMPOSSIBLE for Money Bill. Statement 3's 'becomes necessary' is the error.

Sources

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