Question

With reference to the Finance Bill and Money Bill in the Indian Parliament, consider the following statements:

I. When the Lok Sabha transmits the Finance Bill to the Rajya Sabha, it can amend or reject the bill.
II. The Rajya Sabha has equal powers with the Lok Sabha concerning Money Bills.

a) Only statement I is true.
b) Only statement II is true.
c) Both statements I and II are true.
d) Neither statement I nor II is true.

Answer 1

In the context of the Indian Parliament, the Lok Sabha can send the Finance Bill to the Rajya Sabha for amendment or rejection, but the Rajya Sabha does not have equal power over Money Bills; it can only suggest amendments, which the Lok Sabha can accept or reject. The correct answer is option a.

Step-by-step explanation:

The question pertains to the powers of the Lok Sabha and Rajya Sabha in relation to the Finance Bill and Money Bill in the Indian Parliament. When it comes to the Finance Bill, the Lok Sabha has the power to send it to the Rajya Sabha, which can suggest amendments or reject the bill. This makes statement I true. However, statement II is false because the Rajya Sabha does not have equal powers concerning Money Bills. The Money Bill can only be introduced in the Lok Sabha, and while the Rajya Sabha may suggest amendments, it cannot reject or amend the bill on its own; the Lok Sabha has the final decision-making power. Therefore, the Lok Sabha holds more power concerning Money Bills.

Referencing this, the correct answer to the given question would be 'a) Only statement I is true.'