What is Article 198 of Indian Constitution – Defination & Meaning

Article 198: Special procedure in respect of Money Bills (1) A Money Bill shall not be introduced in a Legislative Council. (2) After a Money Bill has been
📅 Part VI – The States
🏷️Active

📚 UPSC Relevant

Article Number

198

part

Part VI – The States

Status

Active

Bare Acts Text

Article 198: Special procedure in respect of Money Bills

  • (1) A Money Bill shall not be introduced in a Legislative Council.
  • (2) After a Money Bill has been passed by the Legislative Assembly of a State having a Legislative Council, it shall be transmitted to the Legislative Council for its recommendations, and the Legislative Council shall within a period of fourteen days from the date of its receipt of the Bill return the Bill to the Legislative Assembly with its recommendations, and the Legislative Assembly may thereupon either accept or reject all or any of the recommendations of the Legislative Council.
  • (3) If the Legislative Assembly accepts any of the recommendations of the Legislative Council, the Money Bill shall be deemed to have been passed by both Houses with the amendments recommended by the Legislative Council and accepted by the Legislative Assembly.
  • (4) If the Legislative Assembly does not accept any of the recommendations of the Legislative Council, the Money Bill shall be deemed to have been passed by both Houses in the form in which it was passed by the Legislative Assembly without any of the amendments recommended by the Legislative Council.
  • (5) If a Money Bill passed by the Legislative Assembly and transmitted to the Legislative Council for its recommendations is not returned to the Legislative Assembly within the said period of fourteen days, it shall be deemed to have been passed by both Houses at the expiration of the said period in the form in which it was passed by the Legislative Assembly.
READ ALSO  What is Article 243ZS of Indian Constitution - Defination & Meaning

Full Definition & Explanation

Article 198 of the Indian Constitution establishes a clear protocol for handling Money Bills in states with a Legislative Council. A Money Bill is one that exclusively concerns taxation, borrowing, or expenditure from the Consolidated Fund of the state. This article ensures that such bills can only be introduced in the Legislative Assembly and not in the Legislative Council, protecting the legislative process’s integrity and efficiency. The Legislative Assembly is the primary authority regarding financial matters, reflecting the will of the electorate more directly than the Council, which may have members not elected directly by the public. Once a Money Bill is passed by the Legislative Assembly, it is sent to the Legislative Council for recommendations. The Council is given a timeframe of fourteen days to respond with its suggestions. If the Council does not return the Bill within this period, the Bill is automatically considered passed by both Houses in the form it was originally introduced. This provision prevents delays in the legislative process and ensures that necessary financial legislation can be enacted promptly. If the Legislative Council makes recommendations, the Assembly can choose to accept or reject them, maintaining the Assembly’s ultimate authority. This structured process protects the interests of the state while allowing for a check on financial legislation through the Council’s recommendations. It impacts the way financial governance operates in the states and reflects the balance of power between the two Houses. The procedure outlined in Article 198 ensures that the legislative process remains efficient and that the state can respond quickly to financial needs, which is key for governance and development.

Historical Context

A Money Bill is one that exclusively concerns taxation, borrowing, or expenditure from the Consolidated Fund of the state. This article ensures that such bills can only be introduced in the Legislative Assembly and not in the Legislative Council, protecting the legislative process’s integrity and efficiency. The Legislative Assembly is the primary authority regarding financial matters, reflecting the will of the electorate more directly than the Council, which may have members not elected directly by the public. Once a Money Bill is passed by the Legislative Assembly, it is sent to the Legislative Council for recommendations.

Key Features

– A Money Bill cannot be introduced in a Legislative Council.
– The Legislative Council must return the Bill within fourteen days.
– The Legislative Assembly can accept or reject Council recommendations.
– If the Council does not respond, the Bill passes automatically.
– The Assembly retains authority over financial legislation

Importance & Impact

– Streamlines the process of passing Money Bills in state legislatures.
– Ensures that financial matters are primarily controlled by elected representatives.
– Prevents delays in urgent financial legislation through strict timelines
– Encourages collaboration between the Assembly and the Council
– Maintains accountability in financial governance at the state level

Sample UPSC Question

Consider the following statements regarding Article 198 of the Indian Constitution: 1. Money Bills can be introduced in the Legislative Council. 2. The Legislative Council must return the Bill within 14 days. 3. The Legislative Assembly can reject recommendations from the Council. Which of the statements is/are correct? A) 1 only B) 2 and 3 only C) 1 and 3 only D) 2 only

Answer

The correct answer is B) 2 and 3 only. Statement 1 is incorrect because Money Bills cannot be introduced in the Legislative Council. Statements 2 and 3 are correct as the Council must return the Bill within 14 days, and the Assembly can reject the recommendations.

Key Takeaways

✓ Money Bills must only be introduced in the Legislative Assembly.
✓ Legislative Council provides recommendations within fourteen days
✓ Assembly can accept or reject Council’s suggestions
✓ Automatic passage occurs if the Council delays response.
✓ Assembly’s authority in financial matters is preserved

FAQs

Article 198 of the Indian Constitution establishes a clear protocol for handling Money Bills in states with a Legislative Council. A Money Bill is one that exclusively concerns taxation, borrowing, or expenditure from the Consolidated Fund of the state. This article ensures that such bills can only be introduced in the Legislative Assembly and not in the Legislative Council, protecting the legislative process’s integrity and efficiency.

If the Council does not return the Bill within this period, the Bill is automatically considered passed by both Houses in the form it was originally introduced. This provision prevents delays in the legislative process and ensures that necessary financial legislation can be enacted promptly. If the Legislative Council makes recommendations, the Assembly can choose to accept or reject them, maintaining the Assembly’s ultimate authority.

This structured process protects the interests of the state while allowing for a check on financial legislation through the Council’s recommendations. It impacts the way financial governance operates in the states and reflects the balance of power between the two Houses. The procedure outlined in Article 198 ensures that the legislative process remains efficient and that the state can respond quickly to financial needs, which is key for governance and development.

Related Articles

Picture of Pramod Pal Founder and Editor-in-Chief

Pramod Pal Founder and Editor-in-Chief

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.
Scroll to Top