Definition of “Money Bills”

Article 174, Draft Constitution 1948

(1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely:-

(a) The imposition, abolition, remission, alteration or regulation of any tax;

(b) The regulation of the borrowing of money or the giving of any guarantee by the State, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the State;

(c) Supply;

(d) The appropriation of the revenues of the State;

(e) The declaring of any expenditure to be expenditure charged on the revenues of the State, or the increasing of the amount of any such expenditure;

(f) The receipt of money on account of the revenues of the State or the custody or issue of such money or the audit of the accounts of the State; or

(g) Any matter incidental to any of the matters specified in items (a) to (f) of this clause.

(2) A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

(3) If any question arises whether a Bill introduced in the Legislature of a State which has a Legislative Council is a Money Bill or not, the decision of the Speaker of the Legislative Assembly of such State thereon shall be final.

(4) There shall be endorsed on every Money Bill when it is transmitted to the Legislative Council under the last preceding article, and when it is presented to the Governor for assent under the next succeeding article, the certificate of the Speaker of the Legislative Assembly signed by him that it is a Money Bill.

Article 199, Constitution of India 1950

(1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely—

(a) the imposition, abolition, remission, alteration or regulation of any tax;

(b) the regulation of the borrowing of money or the giving of any guarantee by the State, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the State;

(c) the custody of the Consolidated Fund or the Contingency Fund of the State, the payment of moneys into or the withdrawal of moneys from any such Fund;

(d) the appropriation of moneys out of the Consolidated Fund of the State;

(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of the State, or the increasing of the amount of any such expenditure;

(f) the receipt of money on account of the Consolidated Fund of the State or the public account of the State or the custody or issue of such money; or

(g) any matter incidental to any of the matters specified in sub-clauses (a) to (f).

⁠(2) A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

⁠(3) If any question arises whether a Bill introduced in the Legislature of a State which has a Legislative Council is a Money Bill or not, the decision of the Speaker of the Legislative Assembly of such State thereon shall be final.

⁠(4) There shall be endorsed on every Money Bill when it is transmitted to the Legislative Council under article 198, and when it is presented to the Governor for assent under article 200, the certificate of the Speaker of the Legislative Assembly signed by him that it is a Money Bill.

Draft Article 174 (Article 199) was debated on 10 June 1949. It laid down the definition of a Money Bill.

The Chairman of the Drafting Committee proposed an amendment to expand the scope of the Draft Article. He also proposed that the term ‘Revenues of India’ should be replaced with ‘Consolidated Fund of India’ throughout the Draft Article. Both amendments were accepted without debate.

Another member proposed an amendment to clause (e), which would broaden the scope of Money Bills to include a Bill containing provisions on the decrease or abolition of any expenditures. He pointed out that this would bring Bills diminishing the emoluments of the Speaker and Chairman of the Legislative Assembly, and their deputies exclusively within the power of the Lower House. This amendment was not put to vote, as the Drafting Committee agreed to examine the matter at a later date.

The amended Draft Article was adopted on 10 August 1949.