MONEY BILL

The government introduced the Aadhaar bill in the LS as a money bill. Here’s a look at what a money bill means:

What’s a money bill?

Any bill in Parliament is a draft or a proposed legislation before it becomes a law. A money bill, according to article 110(1) of the Indian Constitution, is concerned only with introduction or repeal of taxes as well as public spending or borrowing. It follows the British parliamentary system, in which a money bill is one that in the Speaker’s opinion deals with taxation, public spending or loans

How is it different? A money bill can be introduced only in Lok Sabha. It needs to be sent to Rajya Sabha for approval that cannot make amendments to it, but only recommend changes. The upper house must send it back to Lok Sabha within 14 days

What if there are differences? Lok Sabha may not accept changes recommended by the Upper House. In this case, the money bill is automatically passed. If the Rajya Sabha doesn’t send the bill back within 14 days, then too it is considered passed

Is Aadhaar a money bill? The government has introduced a new bill to give legal backing to Aadhaar, the citizens’ biometric identity repository. The government intends this to be a money bill as the identity numbers will be linked to official handouts, such as cheap food, which depend on its finances. The move could be controversial since Aadhaar has been legally challenged on the grounds that it could violate privacy.