UPSC Prelims 2018 GS Paper I · Q31 / 100 Polity & Governance medium

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

  1. (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.
  2. (b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
  3. (c) A Money Bill is concerned with the appropriation of moneys out of the Contingency Fund of India. ✓ UPSC's answer
  4. (d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the Government of India.

Why the answer is (c)

• The question asks which statement is NOT correct.

• Article 110(1) lists Money Bill matters: taxes (a); regulation of borrowing and guarantees (d); custody of the Consolidated Fund and Contingency Fund and payments into or withdrawals from them (b); appropriation of moneys out of the Consolidated Fund; and related matters.

• Option (c) is wrong: Article 110(1)(d) speaks of appropriation of moneys out of the Consolidated Fund of India, not the Contingency Fund — the Contingency Fund is at the President's disposal for unforeseen expenditure, and Parliament later regularises it.

• Hence option (c).

Why the other options are wrong

(a) A bill shall be deemed to be a Money Bill if it contains only provisions relating to…
This is correct: tax provisions make a Money Bill.
(b) A Money Bill has provisions for the custody of the Consolidated Fund of India or the…
This is correct: custody of the funds is a Money Bill matter.
(d) A Money Bill deals with the regulation of borrowing of money or giving of any guarantee…
This is correct: borrowing regulation is a Money Bill matter.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2018, held on 3 June 2018. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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