• UGI USER
  • Jul 17, 2024
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SUPREME COURT’S CONSIDERATION OF MONEY BILLS

Why in the news?

  • The Supreme Court has agreed to review petitions challenging the government’s use of Money Bills to expedite contentious legislation without Rajya Sabha approval.
  • Senior advocates Kapil Sibal, Abhishek Manu Singhvi, and Indira Jaising sought an urgent hearing from Chief Justice of India CJI Chandrachud ahead of the Union Budget.
source:TOI

Legal Framework and Controversies:

  • Money Bills bypass Rajya Sabha and require only Lok Sabha passage, facilitating swift enactment.
  • Article 110 of the Constitution strictly defines Money Bills, limiting them to financial matters related to taxes, government funds, or incidental expenses.
  • The Speaker’s decision on whether a Bill qualifies as a Money Bill is final under Article 110(3).

Key Cases and Judicial Decisions:

  • The Aadhaar Act and Finance Act, 2017 have sparked debates on misuse of the Money Bill route, with judgments indicating varying views on its constitutional validity.
  • Pending cases challenge the broader implications of Money Bills, including powers of agencies under PMLA and electoral bond schemes facilitated through legislative amendments.
What is  a money bill ?

  • A bill qualifies as a money bill if it exclusively addresses:
  • Imposition, abolition, remission, alteration, or regulation of taxes.
  • Borrowing of money by the Union government.
  • Appropriation of funds and withdrawals from the Consolidated Fund of India or the contingency fund.
  • Receipt, custody, and audit of funds in the Consolidated Fund of India or public account.
  • Matters directly related to these specified subjects.

Constitutional provisions:

  • Articles 109 and 198: Special procedures for Money Bills in Parliament, distinguishing them from ordinary bills.
  • Articles 110 and 199: Define Money Bills under strict criteria, limiting their scope to specific financial matters related to taxation, government expenditures, or the Consolidated Fund.

Associated Article

https://universalinstitutions.com/supreme-court-to-review-use-of-money-bills/