Which of the following statements are correct in respect of a Money Bill in the Parliament? 1. Article 109 mentions special procedure in respect of Money Bills. 2. A Money Bill shall not be introduced in the Council of States. 3. The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it. 4. Amendment to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha. Select the correct answer using the code given below :

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2024, Q45

Contents8
UPSC Prelims GS2024Indian Polity
  1. A1 and 2 only
  2. B2 and 3 only
  3. C1, 2 and 3
  4. D1, 3 and 4
Show answer

Answer: (C) 1, 2 and 3

Correct Answer: (c) Statements 1, 2 and 3.

Statement 1: Article 109 deals with the special procedure for Money Bills — ✓ CORRECT.

Statement 2: A Money Bill cannot be introduced in the Rajya Sabha — ✓ CORRECT.

It can only be introduced in the Lok Sabha.

Statement 3: Rajya Sabha can either approve or suggest changes, but cannot reject a Money Bill — ✓ CORRECT.

It must return the bill within 14 days.

Statement 4: Lok Sabha must accept Rajya Sabha's suggestions — ✗ WRONG.

Lok Sabha has the final say — it may accept or reject the Rajya Sabha's recommendations.

If it rejects them, the bill is still deemed passed.

Key takeaway: For Money Bills, Lok Sabha has supreme power.

Rajya Sabha can only suggest, not reject, and even those suggestions can be ignored.

Why this was asked

Money Bills give Lok Sabha complete supremacy over Rajya Sabha - the only legislative area where Upper House has zero blocking power.

The procedure ensures financial matters cannot be stalled by Rajya Sabha, reflecting the principle that the directly elected house controls public finances.

Statement 4 is the classic trap - students often assume suggestions must be accepted, but Lok Sabha can ignore all Rajya Sabha recommendations and still pass the bill.

Money Bills & Article 109

Indian Polity Money Bill Article 109

Money Bills: Definition, Article 109 & Constitutional Framework

Must know

Article 109 provides special procedure for Money Bills in Parliament

Money Bills can only be introduced in Lok Sabha, never in Rajya Sabha

Article 110 defines what constitutes a Money Bill

Good to know

Speaker of Lok Sabha decides whether a bill is a Money Bill or not

Money Bills are financial legislation dealing with taxation, government spending, and public money. Article 109 establishes their special legislative procedure, while Article 110 defines their scope.

Money Bill vs Ordinary Bill

Aspect

Money Bill

Ordinary Bill

Constitutional Provision

Articles 109-110

Article 107-108

Introduction

Lok Sabha only

Either House

Prior Recommendation

President's recommendation required

Not required for all bills

Rajya Sabha Powers

Cannot reject, only suggest

Can reject or amend

Final Authority

Lok Sabha

Both Houses equally

Article 110: What is a Money Bill

Bills dealing with taxation (imposition, abolition, remission, alteration)

Bills regulating borrowing of money by Government of India

Bills related to custody and withdrawal of Consolidated Fund or Contingency Fund

Bills concerning appropriation of money out of Consolidated Fund

Bills for declaring any expenditure charged on Consolidated Fund

Rajya Sabha Powers in Money Bills

Indian Polity Rajya Sabha Council of States

Rajya Sabha's Limited Role in Money Bills: Powers & Restrictions

Must know

Rajya Sabha cannot introduce Money Bills

Rajya Sabha cannot reject Money Bills, only suggest changes

Must return Money Bill within 14 days with or without recommendations

Lok Sabha can accept or reject all Rajya Sabha suggestions

The Rajya Sabha's role in Money Bills is deliberately restricted to maintain Lok Sabha's supremacy in financial matters, reflecting the principle that the directly elected house controls public purse.

Money Bill Procedure

%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
  s1["`**Introduction in Lok Sabha**
Money Bill introduced only in Lok Sabha with **President's prior recommendation**`"]
  s2["`**Lok Sabha Passes**
After discussion and voting, Lok Sabha passes the Money Bill`"]
  s3["`**Sent to Rajya Sabha**
Bill automatically goes to Rajya Sabha within **14 days**`"]
  s4["`**Rajya Sabha Options**
Can **approve** OR **suggest amendments** OR **take no action**`"]
  s5["`**Back to Lok Sabha**
Rajya Sabha must return within 14 days with recommendations (if any)`"]
  s6["`**Lok Sabha Decision**
Lok Sabha may **accept or reject** Rajya Sabha suggestions`"]
  s7["`**Presidential Assent**
Bill sent to President for assent, deemed passed in both Houses`"]
  s1 --> s2
  s2 --> s3
  s3 --> s4
  s4 --> s5
  s5 --> s6
  s6 --> s7
Exam traps

Trap: Statement 4 says Lok Sabha must accept Rajya Sabha suggestions — WRONG. Lok Sabha has final say.

Trap: Thinking Rajya Sabha can reject Money Bills — it can only suggest changes or approve.

Trap: Confusing 14 days limit with ordinary bill procedures which have no time limit.

Common error: Believing both houses have equal power over Money Bills like ordinary legislation.

Lok Sabha Supremacy in Financial Matters

Indian Polity Lok Sabha

Lok Sabha's Financial Supremacy: Constitutional Logic & Powers

Must know

Lok Sabha has supreme power over all financial legislation

Good to know

Based on principle of direct electoral accountability for public money

Westminster model influence: elected house controls taxation and spending

The Constitution establishes Lok Sabha's financial supremacy because it's directly elected by the people. The principle is: those who pay taxes (through their elected representatives) should control how taxes are spent.

Financial Powers Comparison

Financial Matter

Lok Sabha Power

Rajya Sabha Power

Money Bills

Exclusive introduction and final decision

Suggest only within 14 days

Annual Budget

Must be introduced here first

Can discuss but cannot vote on demands for grants

Financial Emergency

Equal power with Rajya Sabha

Equal power with Lok Sabha

Tax Proposals

Exclusive power to approve

No power to vote on tax matters

Why This Asymmetry Exists

Direct election: Lok Sabha members directly accountable to voters for financial decisions

Westminster heritage: British Parliament model where Commons controls public purse

Democratic principle: Taxation requires consent of directly elected representatives

Federal balance: States' interests in Rajya Sabha should not override national financial policy