Regarding Finance Bill and Money Bill in the Indian Parliament, consider the following statements :

1. When the Lok Sabha transmits the Finance Bill to the Rajya Sabha, it can amend or reject the Bill.

2. When the Lok Sabha transmits the 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 the Finance Bill.

How many of the above statements are correct? 

The correct answer is Option 2.

Key Points

• Finance Bill:
  • The Finance Bill is treated like an ordinary bill (though it deals with fiscal matters), meaning it can be amended or rejected by the Rajya Sabha. Both Houses must approve it.
  • Hence, statement 1 is correct.
• Money Bill:
  • When the Lok Sabha transmits a Money Bill to the Rajya Sabha, the upper house can only recommend changes within 14 days, which the Lok Sabha can accept or reject.
  • The Rajya Sabha cannot amend or reject a Money Bill.
  • Hence, statement 2 is correct.
• Joint Sitting:
  • In the case of a Money Bill, there is no provision for a joint sitting if disagreements arise between the Lok Sabha and the Rajya Sabha.
  • However, for a Finance Bill or an ordinary bill, a joint sitting may be summoned to resolve differences.
  • Hence, statement 3 is incorrect.
• Therefore, two statements are correct, and the correct answer is option 2.

Additional Information

• Money Bill Certification:
  • The Speaker of the Lok Sabha certifies whether a bill is a Money Bill, and the decision is final and cannot be questioned in any court.
• Article 108 (Joint Sitting):
  • Article 108 of the Constitution provides for a joint sitting of both Houses in case of disagreements over ordinary bills and Finance Bills, but this does not apply to Money Bills.