A Money Bill is a category of legislation concerned solely with public finance — the imposition or alteration of taxes, the appropriation of funds from the public treasury, government borrowing, or the audit of public accounts. Because such measures touch the public purse, most parliamentary systems treat them as the special preserve of the directly elected chamber and restrict the role of the upper house or head of state.
In the United Kingdom, the concept was codified by the Parliament Act 1911, enacted after the House of Lords rejected David Lloyd George's 1909 "People's Budget." Under section 1, a bill certified as a Money Bill by the Speaker of the House of Commons becomes law one month after being sent to the Lords, whether or not the Lords assent. The Speaker's certificate is conclusive and not subject to judicial review.
In India, Article 110 of the Constitution defines a Money Bill exhaustively: it must deal only with matters such as taxation, borrowing, the Consolidated Fund, or appropriation. Under Article 109, the Rajya Sabha (upper house) may only recommend amendments, which the Lok Sabha may accept or reject; the bill must be returned within 14 days. The Lok Sabha Speaker certifies whether a bill qualifies. This certification became contentious in Rojer Mathew v. South Indian Bank (2019) and K.S. Puttaswamy v. Union of India (2018, on the Aadhaar Act), where the Supreme Court examined whether legislation had been improperly passed as a Money Bill to bypass the Rajya Sabha.
Similar mechanisms exist in Ireland (Article 22 of the 1937 Constitution), Australia (section 53 of the Constitution restricts the Senate on appropriation and taxation bills), and other Westminster-derived systems.
Key features generally include:
- Lower-house origination — must be introduced in the popularly elected chamber.
- Limited upper-house power — typically advisory rather than blocking.
- Executive gatekeeping — often requires prior recommendation of the head of state or government.
- Speaker's certification — a procedural determination of status.
Example
In 2016, the Indian government passed the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act as a Money Bill, a classification later challenged before the Supreme Court in K.S. Puttaswamy v. Union of India.
Frequently asked questions
In Westminster-style systems, the Speaker of the lower house certifies the status. In the UK this dates from the Parliament Act 1911; in India, Article 110(3) vests the decision in the Lok Sabha Speaker.
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