📜 Article 199 of the Indian Constitution
Title: Definition of “Money Bills”
🔹 Purpose:
Article 199 defines what constitutes a “Money Bill” in the context of State Legislatures.
This is crucial because Money Bills follow a special procedure and can only be introduced in the Legislative Assembly (Vidhan Sabha), not in the Legislative Council (if the state has one).
📌 Clause-wise Explanation:
| Clause | Provision |
|---|---|
| (1) | A Bill is a Money Bill if it contains only provisions dealing with: |
| 👉 (a) Taxes (imposition, abolition, remission, alteration, or regulation) by the State | |
| 👉 (b) Borrowing of money or giving of guarantees by the State | |
| 👉 (c) Custody of the Consolidated Fund of the State or Contingency Fund | |
| 👉 (d) Appropriation of money from the Consolidated Fund of the State | |
| 👉 (e) Declaring expenditure charged on the Consolidated Fund | |
| 👉 (f) Receipt, custody, or issue of money from the Consolidated/Contingency Fund | |
| 👉 (g) Any matter incidental to the above | |
| (2) | A Bill shall not be deemed a Money Bill just because it imposes a fine or penalty or involves payment of license fees or other service charges. |
| (3) | If any question arises about whether a Bill is a Money Bill or not, the decision of the Speaker of the Legislative Assembly is final. |
| (4) | The Speaker’s decision that a Bill is a Money Bill must be endorsed when the Bill is transmitted to the Legislative Council or presented to the Governor. |
🧠Key Takeaways:
-
Only the Speaker can decide if a Bill is a Money Bill — and that decision cannot be challenged in court (as per current interpretation).
-
This Article mirrors Article 110 (Money Bills in Parliament).
-
Helps distinguish financial legislation from other types of laws in a bicameral system.
-
Once certified as a Money Bill, the Legislative Council has no power to reject or amend it, only delay it for 14 days (see Article 198).
✅ Example of a Money Bill:
-
State Budget Bill
-
Bill to impose VAT/GST
-
Bill authorizing expenditure on state schemes
❌ Not a Money Bill:
-
A Bill imposing a fine for pollution
-
A Bill about court fees or stamp duties
⚖️ Related Articles:
| Article | Subject |
|---|---|
| 198 | Procedure for passing Money Bills in states |
| 199 | Definition of Money Bills (State) |
| 110 | Definition of Money Bills (Parliament) |
| 212 | Courts not to inquire into legislative procedure |
Follow Us