What is Article 110 of Indian Constitution – Defination & Meaning

Article 110: Definition of “Money Bills” (1) For the purposes of this Chapter, a Bill shall be deemed to be a Money Bill if it contains only provisions
📅 Part V – The Union
🏷️Active

📚 UPSC Relevant

Article Number

110

part

Part V – The Union

Status

Active

Bare Acts Text

Article 110: Definition of “Money Bills”

  • (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-clauses (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.
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Full Definition & Explanation

Article 110 of the Indian Constitution defines what constitutes a Money Bill. This article is key for the legislative process as it outlines specific matters that can be included in such bills. A Money Bill primarily addresses issues related to taxes, borrowing money, and managing government funds. For example, if the government wants to introduce a new tax or change an existing one, this would be classified as a Money Bill under Article 110. This classification ensures that only certain types of financial matters are discussed in a particular manner, thus streamlining the legislative process. The article also specifies that a bill cannot be considered a Money Bill simply because it includes fines or fees imposed by local authorities. This exception prevents the misuse of the classification for local governance issues, ensuring that only broader financial matters are handled under this article. The Speaker of the House of the People plays a key role by certifying whether a bill is a Money Bill or not. This certification is necessary before the bill moves to the Council of States or is presented to the President for approval. In practice, the distinction between Money Bills and other types of bills impacts how legislation is debated and passed. Money Bills can only be introduced in the Lok Sabha and not in the Rajya Sabha. This structure empowers the Lok Sabha, reflecting the belief that financial matters require more direct oversight from the elected representatives of the people. Understanding Article 110 is key for anyone studying Indian polity, as it is central to how financial legislation operates in India.

Historical Context

This article is key for the legislative process as it outlines specific matters that can be included in such bills. A Money Bill primarily addresses issues related to taxes, borrowing money, and managing government funds. For example, if the government wants to introduce a new tax or change an existing one, this would be classified as a Money Bill under Article 110. This classification ensures that only certain types of financial matters are discussed in a particular manner, thus streamlining the legislative process.

Key Features

– A Money Bill deals with taxation and government borrowing matters.
– The Speaker’s certification is required for Money Bills.
– Money Bills can only be introduced in the Lok Sabha.
– Money Bills cannot include local authority tax provisions.
– Decisions on Money Bills are final and cannot be contested.

Importance & Impact

– Clarifies what constitutes a Money Bill in legislation
– Ensures proper management of government finances
– Facilitates faster approval of financial legislation
– Prevents local issues from misclassifying as Money Bills
– Empowers elected representatives to manage financial matters

Sample UPSC Question

Consider the following statements about Article 110: 1. A bill dealing with imposition of a tax is a Money Bill under Article 110. 2. The Speaker’s certificate on Money Bills can never be challenged in any court. 3. The Aadhaar Act 2016 was passed as a Money Bill under Article 110. 4. Both Money Bills and Financial Bills are treated identically in Parliament. Which statements are correct? a) 1 and 3 only b) 1, 2 and 3 only c) 2 and 4 only d) 1, 3 and 4 only

Answer

Answer: a) 1 and 3 only Statement 1 is correct — taxation bills are Money Bills per Article 110(1)(a). Statement 2 is wrong — in Rojer Mathew (2019) and Puttaswamy (Aadhaar) (2018), the Supreme Court questioned the Speaker’s Money Bill certification power. Statement 3 is correct — the Aadhaar Act was controversially passed as a Money Bill. Statement 4 is wrong — Financial Bills require Rajya Sabha approval; Money Bills do not.

Key Takeaways

✓ Money Bills deal with taxation and financial management.
✓ The Speaker certifies a Money Bill’s status
✓ They can only be introduced in the Lok Sabha.
✓ Local tax matters cannot be included in Money Bills.
✓ Decisions about Money Bills are final and binding.

FAQs

Article 110 of the Indian Constitution defines what constitutes a Money Bill. This article is key for the legislative process as it outlines specific matters that can be included in such bills. A Money Bill primarily addresses issues related to taxes, borrowing money, and managing government funds. For example, if the government wants to introduce a new tax or change an existing one, this would be classified as a Money Bill under Article 110.

This exception prevents the misuse of the classification for local governance issues, ensuring that only broader financial matters are handled under this article. The Speaker of the House of the People plays a key role by certifying whether a bill is a Money Bill or not. This certification is necessary before the bill moves to the Council of States or is presented to the President for approval.

Money Bills can only be introduced in the Lok Sabha and not in the Rajya Sabha. This structure empowers the Lok Sabha, reflecting the belief that financial matters require more direct oversight from the elected representatives of the people. Understanding Article 110 is key for anyone studying Indian polity, as it is central to how financial legislation operates in India.

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Pramod is the Founder and Editor-in-Chief of StudyHub. He holds a Master's degree and is currently pursuing a Ph.D. in Geology, alongside more than 7+ years spent building and verifying competitive exam content for Indian aspirants. He leads StudyHub's editorial process across Indian Polity, the Constitution, Indian Economy, History, Geography, Science, and the platform's other subject areas — checking every article against primary sources (bare act text and Gazette notifications for constitutional topics, government and Economic Survey data for economy content, standard reference material elsewhere) and flagging it for re-verification whenever a relevant amendment, policy, or data update makes an earlier version outdated.
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