With reference to Finance Bill and Money Bill in the Indian Parliament, consider the following statements:
- 1.When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
- 2.When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
- 3.In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill.
How many of the above statements are correct?
Answer & explanation
Answer: (b) Only two
UPSC's official answer: (b) · the answer UPSC accepted, and the one that counts in the exam
Also defensible: (a)
- Statement 2 is correct on any reading: under Article 109(2) the Rajya Sabha must 'return the Bill to the House of the People with its recommendations' within fourteen days.
- Statement 3 fails on 'becomes necessary': Article 108 only says the President 'may' summon a joint sitting on a non-Money Bill; it is never compulsory, and a Money Bill has no joint sitting at all.
- Statement 1 depends on what 'Finance Bill' means. UPSC's key treats it as a financial Bill that is not a Money Bill, which the Rajya Sabha can amend or reject like any other Bill, so 1 and 2 are correct: two, option (b).
- But the Finance Bill of the Budget, defined in Lok Sabha Rule 219 as 'the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India', is certified a Money Bill: 'A Finance Bill is a Money Bill but not all money bills are Finance Bills' (Arthapedia, Indian Economic Service). On that reading the Rajya Sabha cannot amend or reject it, 1 fails too, and only 2 holds: option (a).
UPSC's key is (b), reading 'Finance Bill' as the non-Money financial Bill; read as the annual Finance Bill, a Money Bill, only statement 2 survives, giving (a). In the exam, when UPSC sets 'Finance Bill' against 'Money Bill', read it as the non-Money financial Bill, and never let 'necessary' pass for 'possible'.
- Rules of Procedure and Conduct of Business in Lok Sabha, Rule 219 (Finance Bill), 17th edition (sansad.in) ↗““Finance Bill” means the Bill ordinarily introduced in each year to give effect to the financial proposals of the Government of India”
- Arthapedia (Indian Economic Service, ies.gov.in): Finance Bill or Finance Act ↗“A Finance Bill is a Money Bill but not all money bills are Finance Bills.”
- Constitution of India, Article 109(2) (Legislative Department) ↗“the Council of States shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the House of the People with its recommendations”
This box is Minimalist IAS's analysis, with its sources; it does not change UPSC's answer.
Statements 1 and 2 are correct and statement 3 is not, so two are correct. The question sets a Finance Bill against a Money Bill, so the Finance Bill here is a financial Bill that is not a Money Bill: the Rajya Sabha can amend or reject it like any other Bill (1), while a Money Bill it can only return with recommendations within 14 days (2). Statement 3 fails on 'becomes necessary': Article 108 lets the President summon a joint sitting on a non-Money Bill, but it is never compulsory.
- ✓ 1. Article 117(1) restricts a financial Bill only at introduction: the President's recommendation, and no introduction in the Rajya Sabha. Once transmitted, the Rajya Sabha can amend or reject it; Article 108 itself contemplates such a Bill being 'rejected by the other House' or the Houses disagreeing on amendments.
- ✓ 2. Article 109(2): the Council of States must return a Money Bill within fourteen days with recommendations, and the House of the People may accept or reject any of them.
- ✗ 3. No joint sitting for a Money Bill is right (Article 108 proviso), but a joint sitting never 'becomes necessary': on a disagreement the President 'may' notify a joint sitting, and the Bill may simply lapse. A possible remedy is not a necessary one.
Remember · Money Bill: Lok Sabha only; Rajya Sabha may only recommend within 14 days; no joint sitting. Other financial Bills: Rajya Sabha can amend or reject; a joint sitting is possible (the President 'may' summon one), never necessary.
Sources
- Constitution of India, Article 109(2) (Legislative Department) ↗ “the Council of States shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the House of the People with its recommendations … his intention to summon them to meet in a joint sitting for the purpose of deliberating and voting on the Bill: Provided that nothing in this clause shall apply to a Money Bill. … and a Bill making such provision shall not be introduced in the Council of States … (a) the Bill is rejected by the other House; or (b) the Houses have finally disagreed as to the amendments to be made in the Bill … the President may, unless the Bill has elapsed by reason of a dissolution of the House of the People, notify to the Houses by message if they are sitting or by public notification if they are not sitting, his intention to summon them to meet in a joint sitting”
Question and answer: UPSC's official GS Paper I (2023, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 1 Oct 2026 (how we verify). ·