Question 1

A Finance Bill and a Money Bill are exactly the same thing.

Accepted Answer

While the annual Finance Bill is introduced as a Money Bill, not all Financial Bills are Money Bills. A Bill is only a Money Bill if it exclusively contains provisions listed in Article 110, such as the imposition or abolition of taxes.

Question 2

The Rajya Sabha has the power to amend or reject a Money Bill if it disagrees with the Lok Sabha.

Accepted Answer

Under Article 109, the Rajya Sabha can only make recommendations on a Money Bill within 14 days, which the Lok Sabha is completely free to accept or reject. It cannot formally amend or reject it.

Question 3

Consider the following statements regarding the Finance Bill and Money Bills in the Indian Parliament:
1. The annual Finance Bill introduced with the Budget is categorized as a Financial Bill Category-I under Article 117(1) and undergoes the exact same legislative procedure as an Ordinary Bill.
2. The Rajya Sabha must return a Money Bill to the Lok Sabha within 14 days, failing which it is deemed to have been passed by both Houses in the form it was passed by the Lok Sabha.
3. Article 265 of the Constitution mandates that no tax shall be levied or collected except by authority of law.
How many of the above statements are correct?

Accepted Answer

(b) Only two — Statement 1 is incorrect. The annual Finance Bill is a Money Bill defined under Article 110, not just a Financial Bill Category-I, and it follows a special legislative procedure where Rajya Sabha has limited powers. Statements 2 and 3 are correct constitutional provisions regarding Money Bill procedures (Article 109) and taxation limits (Article 265).

Question 4

Match List I (Constitutional Provision) with List II (Subject Matter):
List I:
A. Article 110
B. Article 112
C. Article 117
D. Article 265

List II:
1. Annual Financial Statement (Budget)
2. Definition of Money Bill
3. Special provisions as to Financial Bills
4. Taxes not to be imposed save by authority of law

Accepted Answer

(a) A-2, B-1, C-3, D-4 — Article 110 defines Money Bills. Article 112 mandates the presentation of the Annual Financial Statement (Union Budget). Article 117 deals with the special provisions for Financial Bills. Article 265 prohibits the levying of taxes without legal authority.

Question 5

Assertion (A): The President of India cannot return a Money Bill to the Parliament for reconsideration.
Reason (R): Money Bills are introduced in the Lok Sabha only on the prior recommendation of the President.

Accepted Answer

(a) Both A and R are correct and R is the correct explanation of A. — Under Article 111, the President can return ordinary bills for reconsideration. However, the President does not return a Money Bill because it is introduced with their prior approval under Article 117(1). It is a well-established constitutional convention that the President gives assent to a bill they previously recommended.

Introduction of the Finance Bill 2026

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