GS PrelimsPolityMoney Bill2018

Regarding Money Bill, which of the following statements is not correct?

A

A bill shall be deemed to be a Money Bill if it contains only provisions relating to imposition, abolition, remission, alteration or regulation of any tax.

B

A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.

C

A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India.

D

A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.

Correct Answer: Option C

Explanation

1. The question asks to identify the statement that is not correct regarding a Money Bill, as defined under Article 110 of the Constitution. 2. Statement (A) is correct. Article 110(1)(a) states that a bill is deemed to be a Money Bill if it contains only provisions dealing with the imposition, abolition, remission, alteration or regulation of any tax. 3. Statement (B) is correct. Article 110(1)(c) includes provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India, the payment of moneys into or the withdrawal of moneys from any such Fund, as part of the definition of a Money Bill. 4. Statement (D) is correct. Article 110(1)(b) states that a Money Bill deals with the regulation of borrowing of money or 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. 5. Statement (C) is incorrect. Article 110(1)(d) specifies that the appropriation of moneys *out of the Consolidated Fund of India* is a matter for a Money Bill. While expenditure from the Contingency Fund requires Parliamentary approval (often through subsequent appropriation), Article 110 specifically mentions appropriation from the Consolidated Fund, not the Contingency Fund, as a defining characteristic. Therefore, this statement misrepresents the specific provision.

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