Regarding Money Bill, which of the following statements is not correct?
Answer & explanation
Answer: (c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.
Statement (c) is the incorrect one. Article 110(1) lets a Money Bill deal with appropriation of moneys out of the Consolidated Fund of India, not out of the Contingency Fund of India.
- ✓ (c) This is the statement that is not correct, so it is the answer. Article 110(1)(d) speaks only of 'the appropriation of moneys out of the Consolidated Fund of India'. The Contingency Fund is mentioned in clause (c), which covers custody of the Fund and payments into it or withdrawals from it, not appropriation.
- ✗ (a) This statement is true (Article 110(1)(a)): a Bill with only provisions on imposition, abolition, remission, alteration or regulation of any tax is a Money Bill.
- ✗ (b) This statement is true (Article 110(1)(c)): custody of the Consolidated Fund or the Contingency Fund of India, and payment of moneys into or withdrawal from them, is a Money Bill matter.
- ✗ (d) This statement is true (Article 110(1)(b)): regulation of borrowing and the giving of guarantees by the Government of India is a Money Bill matter.
Remember · Article 110: Money Bill matters include tax, borrowing, custody of the Consolidated and Contingency Funds, and appropriation out of the Consolidated Fund only. The Speaker's decision on whether a Bill is a Money Bill is final.
Sources
- Constitution of India, Article 110 (Legislative Department, Government of India) ↗ “(c) the custody of the Consolidated Fund or the Contingency Fund of India, 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 India;”
Question and answer: UPSC's official GS Paper I (2018, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·