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?
A
Only one
B
Only two
Correct answer
C
All three
D
None
Explanation
Statement 1 is correct: a Finance Bill that is not a Money Bill is a Financial Bill, which can be introduced only in the Lok Sabha but is otherwise treated like an ordinary bill, so the Rajya Sabha can amend or reject it. Statement 2 is correct: the Rajya Sabha cannot amend or reject a Money Bill; it can only make recommendations within 14 days, which the Lok Sabha may accept or reject. Statement 3 is wrong: there is no joint sitting for a Money Bill, but a joint sitting is not 'necessary' for a Finance Bill; the President may summon one if the Houses disagree. So two statements are correct.
Parliament - Legislative ProcedureFinance Bill vs. Money BillFinance BillMoney BillIndian ParliamentLok SabhaRajya Sabhaamendrejectrecommendationsdisagreementjoint sitting