Law-Making in Parliament

Prerequisites: Parliament — overview · The President and Vice-President

The Hook: When Is a Bill a “Money Bill”?

Connect: In the News → Concept

In 2016, the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act was passed as a Money Bill. That meant the Rajya Sabha could only make recommendations, which the Lok Sabha was free to ignore. In September 2018, the Supreme Court upheld the Act by 4:1 in K.S. Puttaswamy (Aadhaar); the dissenting judge called its passage as a Money Bill a “fraud on the Constitution”. In November 2019, a five-judge bench in Rojer Mathew v. South Indian Bank doubted the majority’s approach and referred the Money Bill question to a larger bench.

The controversy goes to the heart of bicameralism: who decides what counts as a Money Bill, and can that decision be used to bypass the Rajya Sabha?

The Core Concept

Article 79: Parliament consists of the President and two Houses — the Council of States (Rajya Sabha) and the House of the People (Lok Sabha). The President is an integral part of Parliament even though not a member of either House: no Bill becomes law without the President’s assent.

Composition of the two Houses

Point	Rajya Sabha (Article 80)	Lok Sabha (Article 81)
Maximum strength	250 — 238 representatives of States and UTs + 12 nominated by the President	550 elected — up to 530 from States and up to 20 from UTs (the two Anglo-Indian nominated seats under Article 331 ended with the 104th Amendment, 2020)
Present strength	245	543
Election	Indirect — by elected MLAs of each State, by proportional representation (single transferable vote); seats allocated by the Fourth Schedule, broadly by population	Direct — by the people, on universal adult franchise, from territorial constituencies (first-past-the-post)
Nominated members	12 — persons with special knowledge or practical experience in literature, science, art and social service	None
Minimum age (Article 84)	30 years	25 years
Duration	Permanent — not subject to dissolution; one-third of members retire every second year; a member’s term is six years (Representation of the People Act, 1951)	Five years unless dissolved earlier; can be extended by Parliament by law one year at a time during a National Emergency, but not beyond six months after the Emergency ends (Article 83(2))
Presiding officer	Chairman — the Vice-President (ex officio); Deputy Chairman elected from members	Speaker, elected from members; Deputy Speaker

Allocation of Lok Sabha seats among States is based on the 1971 Census and is frozen until the first census taken after 2026 (84th Amendment, 2001). The boundaries of constituencies within States were readjusted on the basis of the 2001 Census (87th Amendment, 2003).

The Speaker (Articles 93–96)

Elected by the Lok Sabha from among its members; holds office till the House’s dissolution, but does not vacate office on dissolution — continues until the new House first meets.
Resignation is addressed to the Deputy Speaker.
Removal: resolution passed by a majority of all the then members of the Lok Sabha (effective majority), after 14 days’ notice. During such a resolution, the Speaker cannot preside but may speak and vote in the first instance (not a casting vote).
Powers: casting vote in case of a tie (Article 100); certifies Money Bills — the decision is final (Article 110(3)); presides over joint sittings (Article 118(4)); decides disqualification under the Tenth Schedule (subject to judicial review — Kihoto Hollohan, 1992); appoints chairpersons of Lok Sabha committees.
A Speaker pro tem, appointed by the President (usually the senior-most member), administers the oath to new members and presides over the election of the Speaker.

Sessions and sittings

Term	Meaning	By whom
Summoning	Calling a House to meet; gap between two sessions must not exceed six months (Article 85)	President
Adjournment	Suspends a sitting for hours, days or weeks; sine die = without fixing a day	Presiding officer
Prorogation	Ends a session	President
Dissolution	Ends the life of the Lok Sabha (the Rajya Sabha is never dissolved)	President
Quorum	One-tenth of the total members of the House, including the presiding officer (Article 100(3))	—

By convention, Parliament meets in three sessions a year — Budget, Monsoon and Winter.

How an ordinary Bill becomes law

graph TD
    A[First reading: introduction in either House] --> B[Second reading: general discussion]
    B --> C[Committee stage: select, joint or departmental committee]
    C --> D[Consideration stage: clause-by-clause, amendments voted]
    D --> E[Third reading: Bill passed or rejected as a whole]
    E --> F[Second House: same stages]
    F --> G{Second House passes it unchanged?}
    G -->|Yes| H[Presented to the President - Art 111]
    G -->|Rejects, insists on amendments, or no action for 6 months| I[President may summon a joint sitting - Art 108]
    I --> H

Three kinds of financial Bills

Point	Money Bill (Art 110)	Financial Bill (I) (Art 117(1))	Financial Bill (II) (Art 117(3))
Contents	Only matters in Article 110(1)(a)–(g): taxes, government borrowing, Consolidated and Contingency Funds, appropriation from the Consolidated Fund, charged expenditure, receipts into the Consolidated Fund or Public Account, and incidental matters	Any Article 110 matter plus other matters	Expenditure from the Consolidated Fund, but no Article 110 matter
Where introduced	Lok Sabha only	Lok Sabha only	Either House
President’s recommendation	Needed to introduce	Needed to introduce	Needed for consideration, not introduction
Rajya Sabha’s power	Only recommend, within 14 days; Lok Sabha may accept or reject	Full — may amend or reject	Full — may amend or reject
Joint sitting	Not possible	Possible	Possible
President	Assent or withhold — cannot return	May return	May return

The Speaker’s certificate that a Bill is a Money Bill is final (Article 110(3)) — the question of whether courts can review it is the issue referred to a larger bench in Rojer Mathew (2019).

Joint sitting (Article 108)

Called by the President when the second House rejects a Bill, disagrees on amendments, or does not pass it for more than six months.
Presided over by the Speaker (in absence, the Deputy Speaker, then the Deputy Chairman of the Rajya Sabha).
Decision by a simple majority of members of both Houses present and voting — so the larger Lok Sabha usually prevails.
Not available for Money Bills or Constitution Amendment Bills.
Held only three times: Dowry Prohibition Bill (1961), Banking Service Commission (Repeal) Bill (1978), Prevention of Terrorism Bill (2002).

Which Bills lapse when the Lok Sabha is dissolved?

Bill status	Lapses?
Pending in the Lok Sabha	Yes
Passed by the Lok Sabha, pending in the Rajya Sabha	Yes
Pending in the Rajya Sabha, not passed by the Lok Sabha	No
Passed by both Houses, pending President’s assent	No
Returned by the President for reconsideration	No
President has notified a joint sitting before dissolution	No

The budget in the Constitution (Articles 112–117)

The word “budget” does not appear in the Constitution; Article 112 calls it the Annual Financial Statement.

Article	Provision
112	Annual Financial Statement laid before both Houses; distinguishes charged from voted expenditure
113	Charged expenditure is not put to vote (but may be discussed); other expenditure as demands for grants — voted only in the Lok Sabha
114	Appropriation Bill — no money withdrawn from the Consolidated Fund without it
115	Supplementary, additional or excess grants
116	Vote on account, votes of credit and exceptional grants
117	Special provisions on Financial Bills

Charged expenditure (Article 112(3)) includes the President’s emoluments; salaries of the Chairman, Deputy Chairman, Speaker and Deputy Speaker; salaries and allowances of Supreme Court judges and pensions of Supreme Court and High Court judges; the CAG’s salary; debt charges; and sums to satisfy court judgments.

Cut motions (on demands for grants): policy cut — reduce the demand to ₹1 (disapproval of policy); economy cut — reduce by a specified amount; token cut — reduce by ₹100 (a specific grievance).

Since 2017, the Union Budget is presented on 1 February, and the Railway Budget has been merged into it.

Memory Anchors

Lapse rule: “If the Lok Sabha touched it last, it dies with the Lok Sabha.” Bills pending in or passed by the Lok Sabha lapse; Bills only in the Rajya Sabha survive.

Three joint sittings: “Dowry, Banking, POTA” → 1961, 1978, 2002.

Money Bill numbers: “110 defines, 14 days for the Rajya Sabha, 0 power to return.”

Age ladder: Lok Sabha 25, Rajya Sabha 30, President and Vice-President 35.

One-line Mains hook: the Rajya Sabha was designed as a chamber of “sober second thought” — the Money Bill route tests whether it can still play that role.

For Prelims

Facts worth a mark

The President is part of Parliament (Article 79) but not a member of either House.
Rajya Sabha: max 250 (12 nominated); Lok Sabha: max 550 elected after the 104th Amendment.
Speaker’s resignation goes to the Deputy Speaker; the Speaker does not vacate office on dissolution.
Quorum: one-tenth of total membership.
Money Bill: Lok Sabha only; Rajya Sabha has 14 days; the Speaker’s certificate is final.
Joint sitting: presided by the Speaker; not for Money Bills or Amendment Bills; held three times.
Demands for grants are voted only in the Lok Sabha.

For Mains

Dimensions: bicameralism and the role of the Rajya Sabha; the Money Bill route; declining sittings and time for debate; Bills passed without committee scrutiny; the Speaker’s neutrality; delimitation and the population-based freeze.
Keywords: deliberative democracy, legislative scrutiny, chamber of sober second thought, federal chamber, Speaker’s certificate, guillotine.
Value-addition: the Aadhaar judgment (2018) and Rojer Mathew (2019); Kihoto Hollohan (1992) on judicial review of the Speaker’s Tenth Schedule decisions; the 84th and 87th Amendments on delimitation.

Common Traps

Trap #1: 'A Money Bill can be sent to a joint sitting'

No. The Rajya Sabha cannot reject or amend a Money Bill — it can only recommend within 14 days — so there is never a deadlock to resolve. Joint sittings are for ordinary and Financial Bills only.

Trap #2: 'The Vice-President presides over joint sittings'

The Speaker presides (Article 118(4)). The Vice-President is Chairman of the Rajya Sabha and has no role in joint sittings.

Trap #3: 'A Bill pending in the Rajya Sabha lapses on dissolution of the Lok Sabha'

Only if it had already been passed by the Lok Sabha. A Bill introduced in and still pending in the Rajya Sabha survives.

In the News

November 2019 — Rojer Mathew v. South Indian Bank: the scope of judicial review over the Money Bill certificate referred to a larger bench.
September 2023 — Parliament began sitting in the new building; the 106th Amendment on women’s reservation was passed in that session.

Practice

Prelims

UPSC Practice · Prelims GS I Qlm-1

Consider the following statements regarding a Money Bill:

It can be introduced only in the Lok Sabha, and only on the recommendation of the President.
The Rajya Sabha may reject a Money Bill within 14 days.
If any question arises whether a Bill is a Money Bill, the decision of the Speaker of the Lok Sabha is final.

Which of the statements given above is/are correct?

A 1 only
B 2 and 3 only
C 1 and 3 only
D 1, 2 and 3

Solution

Statement 1 is correct — Articles 109 and 117. Statement 2 is incorrect — the Rajya Sabha cannot reject or amend a Money Bill; it can only make recommendations within 14 days. Statement 3 is correct — Article 110(3).

Answer: C

UPSC-pattern practice question

UPSC Practice · Prelims GS I Qlm-2

How many of the following Bills can be the subject of a joint sitting of the two Houses of Parliament under Article 108?

A Money Bill
A Constitution Amendment Bill
An ordinary Bill for the formation of a new State
A Financial Bill under Article 117(1)

A Only one
B Only two
C Only three
D All four

Solution

A Money Bill cannot — the Rajya Sabha can only recommend, so no deadlock arises. A Constitution Amendment Bill cannot — each House must pass it separately by a special majority under Article 368. An ordinary Bill (including one under Article 3) can, and so can a Financial Bill, since the Rajya Sabha has full powers to amend or reject it. So two.

Answer: B

UPSC-pattern practice question

UPSC Practice · Prelims GS I Qlm-3

On the dissolution of the Lok Sabha, which of the following Bills lapse?

A Bill pending in the Lok Sabha
A Bill passed by the Lok Sabha and pending in the Rajya Sabha
A Bill passed by both Houses and pending the assent of the President

Select the correct answer using the code given below.

A 1 and 2 only
B 2 and 3 only
C 1 and 3 only
D 1, 2 and 3

Solution

Bills pending in or passed by the Lok Sabha but still pending in the Rajya Sabha lapse. A Bill passed by both Houses and awaiting assent does not lapse, nor does a Bill pending only in the Rajya Sabha (never passed by the Lok Sabha).

Answer: A

UPSC-pattern practice question

Mains

UPSC Practice · Mains GS II 15 marks · 250 words Qlm-m1

“The Money Bill route has the potential to reduce the Rajya Sabha to irrelevance.” Critically examine in the light of Article 110 and judicial pronouncements.

Solution

Introduction: Article 110 defines a Money Bill narrowly — a Bill containing only matters in clauses (a) to (g). The Rajya Sabha can merely recommend changes within 14 days, and the Speaker’s certificate is final under Article 110(3).

Body:

The concern:
- Bills with substantial non-financial content (such as the Aadhaar Act, 2016) certified as Money Bills deny the Rajya Sabha its revising role.
- The Rajya Sabha represents the States — bypassing it weakens the federal voice.
- Finality of the certificate limits external checks.
Judicial response: the Aadhaar majority (2018) upheld the certification; the dissent called it a fraud on the Constitution; Rojer Mathew (2019) referred the issue to a larger bench, signalling that the certificate may not be wholly immune from review.
Counter-view: the Lok Sabha’s financial primacy reflects the principle that the directly elected House controls the purse; the Speaker is a constitutional authority expected to act impartially.
Way forward: strict adherence to the word “only”; reasons for certification; a settled position from the larger bench; consensus-building with the Rajya Sabha.

Conclusion: The Money Bill is a legitimate tool of financial primacy, but stretching it erodes bicameralism; its use must remain confined to its constitutional purpose.

UPSC-pattern practice question

Quick Revision

Point	One-liner
Art 79	Parliament = President + Rajya Sabha + Lok Sabha
Rajya Sabha	Max 250; 12 nominated; permanent; one-third retire every two years
Lok Sabha	Max 550 elected (104th Amendment); five-year term
Quorum	One-tenth (Art 100)
Sessions	Gap ≤ six months (Art 85)
Money Bill	Art 110; Lok Sabha only; 14 days; Speaker’s certificate final
Joint sitting	Art 108; Speaker presides; thrice — 1961, 1978, 2002
Budget	Art 112 “Annual Financial Statement”; demands voted only in Lok Sabha
Cut motions	Policy ₹1; economy (specified sum); token ₹100

Key Takeaways

The Lok Sabha dominates on money and confidence; the Rajya Sabha is equal on ordinary and constitutional legislation.
Money Bills are defined narrowly in Article 110 — the Speaker’s certificate decides, and its reviewability awaits a larger bench.
Joint sittings resolve deadlocks on ordinary Bills only, and favour the Lok Sabha’s numbers.
Know the lapse rules and the budget Articles 112–117 exactly.

The Hook: When Is a Bill a “Money Bill”?

The Core Concept

Composition of the two Houses

The Speaker (Articles 93–96)

Sessions and sittings

How an ordinary Bill becomes law

Three kinds of financial Bills

Joint sitting (Article 108)

Which Bills lapse when the Lok Sabha is dissolved?

The budget in the Constitution (Articles 112–117)

Memory Anchors

For Prelims

For Mains

Common Traps

In the News

Practice

Prelims

Mains

Quick Revision

Key Takeaways

Related Topics

Keep going in this chapter