Article 110 of the Indian Constitution assumes a pivotal role in defining the concept and scope of a Money Bill within the legislative framework of the country. This constitutional article lays down the specific criteria that a bill must satisfy to be classified as a Money Bill, which is a type of legislation exclusively focused on financial matters. Article 110 provides a comprehensive definition of what constitutes a Money Bill, thereby distinguishing it from other types of bills that fall within the purview of the parliamentary process.

What does Article 110 states ?

Definition of Money Bill

(1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the following matters, namely

(a) the imposition, abolition, remission, alteration or regulation of any tax;

(b) the regulation of the borrowing of money or the giving of any guarantee by the Government of India, or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the Government of India;

(c) the custody of the consolidated Fund or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund;

(d) the appropriation of moneys out of the consolidated Fund of India;

(e) the declaring of any expenditure to be expenditure charged on the Consolidated Fund of India or the increasing of the amount of any such expenditure;

(f) the receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State; or

(g) any matter incidental to any of the matters specified in sub clause (a) to (f)

(2) A Bill shall not be deemed to be a Money Bill by reason only that it provides for the imposition of fines or other pecuniary penalties, or for the demand or payment of fees for licences or fees for services rendered, or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes

(3) If any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final

(4) There shall be endorsed on every Money Bill when it is transmitted to the Council of States under Article 109, and when it is presented to the President for assent under Article 111, the certificate of the Speaker of the House of the People signed by him that it is a Money Bill.

What is a Money Bill ?
  • A money bill pertains to matters of a financial nature, such as taxation, public expenditure, the government’s financial obligations, or expenditures from the Consolidated Fund of India.
  • A currency bill is a form of monetary note. There are three categories of monetary bills:
  • Category I of Finance Bills, i.e., Financial Bills as contemplated by Article 117(1). These proposals include provisions specified in Article 110(1)(a) through (f). These bills have characteristics of both money bills and regular bills. This measure may also be referred to a Joint Committee of the two Houses.
  • Financial Bills as envisioned by Article 117(3). These bills are primarily similar to conventional bills, with the exception that, once passed, they entail expenditures from the consolidated fund. On the President’s recommendation, either House of Parliament may introduce these measures.
Criteria to be a Money Bill
  1. Exclusively Relates to Financial Matters: The primary purpose of the bill must be to deal with any matter specified in Article 110(1)(a) to (g), which includes matters related to the imposition, abolition, remission, alteration, or regulation of taxes, borrowing by the government, custody of the Consolidated Fund of India or Contingency Fund of India, etc. The bill should not cover any other substantial non-financial matters.
  2. Introduced in the Lok Sabha: A Money Bill can only be introduced in the Lok Sabha (House of the People), which is the directly elected lower house of Parliament. The Rajya Sabha (Council of States), the upper house, does not have the power to initiate or introduce Money Bills.
  3. Recommendation of the President: Before introducing a Money Bill in the Lok Sabha, the President of India must recommend it as a Money Bill based on the advice of the Council of Ministers. The President’s recommendation is essential to classify the bill as a Money Bill.
  4. Certification by the Speaker: After the bill is passed by the Lok Sabha, the Speaker certifies it as a Money Bill. The Speaker’s certification is conclusive and final, and the bill is then transmitted to the Rajya Sabha for its information.
  5. Limited Power of the Rajya Sabha: The Rajya Sabha has limited powers concerning Money Bills. It cannot make amendments to a Money Bill, but it can recommend amendments. However, these recommendations are not binding on the Lok Sabha. If the Lok Sabha accepts or rejects any of the Rajya Sabha’s recommendations, the bill is deemed to have been passed in its original form.
Stages of passing a Money Bill in Parliament
1. IntroductionThe Money Bill is introduced in the Lok Sabha (House of the People) by a minister on behalf of the government.
2. First ReadingThe Bill is presented for the first time in the Lok Sabha, and its title and objectives are read out.
3. Second ReadingDetailed discussion and debate on the provisions of the Money Bill take place. Members can propose amendments.
4. Consideration inThe Lok Sabha considers the Bill clause by clause and votes on the amendments, if any, proposed by the members.
Lok Sabha
5. Passing in Lok SabhaAfter the discussion and voting, if the majority of the members present and voting support the Bill, it is passed
in the Lok Sabha.
6. Transmission toThe passed Money Bill is transmitted to the Rajya Sabha (Council of States) for its information.
Rajya Sabha
7. Consideration inThe Rajya Sabha can discuss the provisions of the Money Bill, but it cannot amend it. It can recommend amendments
Rajya Sabha
8. Returning to Lok SabhaThe Rajya Sabha has to return the Money Bill to the Lok Sabha within 14 days from the date of receipt. If not, the
Bill is deemed to be passed by both Houses.
9. Consideration ofIf the Lok Sabha accepts all or some of the Rajya Sabha’s recommendations, it incorporates them into the Bill and
Rajya Sabha
10. Passing in Lok SabhaAfter considering the recommendations, if any, of the Rajya Sabha, the Lok Sabha passes the Money Bill.
11. Certification byThe Speaker of the Lok Sabha certifies the Money Bill as passed in the Lok Sabha.
the Speaker
12. Sending to PresidentThe certified Money Bill is sent to the President of India for his/her assent.
13. Assent by PresidentIf the President gives his/her assent, the Money Bill becomes a law and is enacted.
Landmark judgements

L Ponnammal v Union of India (2022) :-

  • The petitioner argued before the Madras High Court that Sections 128 to 146 of the Finance Act, 2021 were in violation of Article 110 of the Constitution. The petitioner argued that although the provisions were presented in Parliament as a money bill, the change did not fall within the scope of Article 110. The petitioner also contested the initial public offering (IPO) of the Life Insurance Corporation (LIC).
  • The respondents, however, argued that it is imperative for the Court to uphold and preserve the Speaker’s expertise, unless it is clearly and flagrantly contravening the principles enshrined in the Constitution.
  • The Court determined that the fundamental goal of the amendment was to secure monies in the Consolidated Fund of India. The utilization of this fund was intended for the facilitation of developmental objectives, therefore rendering the modification consistent with the provisions outlined in Article 110. Therefore, the High Court ruled against the petition.

Mohd. Saeed Siddiqui v State of U.P. (2014) :-

  • The Supreme Court was presented with a challenge about the speaker’s choice to classify the U.P. Lokayukta and Up-Lokayuktas (Amendment) Act, 2012 as a money bill in this particular instance.
  • Nevertheless, the Court determined that inquiries of this nature may alone be made by a legislative assembly member. The Court’s decision to dismiss the petition was based on its reliance on Article 212 and 255, which establish that the Court should refrain from interfering with the Speaker’s decision.


  1. […] information on tax revenue and government spending, which is crucial for the Finance Bill. In Article 110, the Indian Constitution defines a currency banknote. Cash bills are used to handle financial […]


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