The regulation of borrowing in India refers to the legal framework that governs how the government can acquire funds. This includes issuing bonds and securing loans from both domestic and international sources. Furthermore, it encompasses any guarantees the government may provide for these borrowings.
This aspect includes laws related to the management and control of the Consolidated Fund of India, which serves as the primary government account. Additionally, it covers the Contingency Fund meant for urgent and unforeseen expenditures, detailing how deposits and withdrawals are handled to ensure the safeguarding of these public funds.
Appropriation involves laws that authorize specific amounts of money to be withdrawn from the Consolidated Fund for various government programs, projects, and services. This legal framework is vital for ensuring transparency and accountability in government spending.
Certain expenditures are automatically authorized by the Constitution and do not require annual approval from Parliament. These include salaries for constitutional authorities such as the President and judges, along with interest payments on government debt. Laws in this category address the declaration of new expenditures as "charged" or the increase of existing ones.
This includes regulations governing the collection of money into the Consolidated Fund or the Public Account of India. It also covers the custody, issuance, and auditing of such funds. A bill is classified as a Money Bill only if it exclusively addresses these financial matters. Any bill containing provisions on other topics is categorized as a Financial Bill instead.
Q1. What is a Money Bill?
Answer: A Money Bill is a draft law introduced in the Lok Sabha that deals exclusively with financial issues as defined in Article 110 of the Indian Constitution. These issues include taxation, borrowing regulations, and government expenditures.
Q2. Which articles of the Indian Constitution deal with Money Bills?
Answer: Key articles include Article 109, outlining the procedure for Money Bills; Article 110, defining what constitutes a Money Bill; Article 111, detailing the President’s options regarding Money Bills; and Article 117, specifying that a Money Bill can only be introduced in the Lok Sabha on the President's recommendation.
Q3. Why does the Lok Sabha have primacy over the Rajya Sabha in Money Bill matters?
Answer: The Lok Sabha holds greater authority over financial matters due to its direct election by the public, reflecting the principle of "No Taxation without Representation."
Q4. Can the Rajya Sabha reject a Money Bill?
Answer: No, the Rajya Sabha can only suggest amendments within a 14-day period as per Article 109. If the bill is not returned within this timeframe, it is considered passed.
Q5. What distinguishes a Money Bill from a Financial Bill?
Answer: A Money Bill exclusively addresses financial matters defined in Article 110, while a Financial Bill may include both financial and non-financial provisions.
Question 1: What is a key characteristic of a Money Bill?
A) It can be introduced in either House of Parliament
B) It deals exclusively with financial matters
C) It requires approval from both Houses
D) It can amend the Constitution
Correct Answer: B
Question 2: Which article specifies the introduction of a Money Bill in the Lok Sabha?
A) Article 110
B) Article 117
C) Article 111
D) Article 109
Correct Answer: B
Question 3: Who certifies whether a bill is a Money Bill?
A) The Prime Minister
B) The President
C) The Speaker of the Lok Sabha
D) The Finance Minister
Correct Answer: C
Question 4: Can a Money Bill include provisions for constitutional amendments?
A) Yes, always
B) No, never
C) Only if approved by both Houses
D) Only if it relates to financial matters
Correct Answer: B
Question 5: What happens if the Rajya Sabha does not return a Money Bill within 14 days?
A) It is rejected
B) It is considered passed
C) It is sent back to Lok Sabha
D) It is debated again
Correct Answer: B
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