Article 110 of the Constitution of India defines what constitutes a Money Bill for the purposes of Parliament. The provision is important because a Bill classified as a Money Bill follows a special legislative procedure under Article 109, under which the Lok Sabha has the decisive role and the Rajya Sabha has only a recommending role.
- Meaning of Article 110
- Article 110(1): Matters Covered by a Money Bill
- Article 110(1)(a): Taxation
- Article 110(1)(b): Government Borrowing and Guarantees
- Article 110(1)(c): Consolidated Fund and Contingency Fund
- Article 110(1)(d): Appropriation from the Consolidated Fund of India
- Article 110(1)(e): Charged Expenditure
- Article 110(1)(f): Receipt, Custody, Issue and Audit of Public Money
- Article 110(1)(g): Incidental Matters
- The Seven Categories at a Glance
- Article 110(2): Matters That Do Not By Themselves Make a Bill a Money Bill
- Fines and Pecuniary Penalties
- Licence Fees and Service Fees
- Local Taxes
- Article 110(2) vs Article 110(1)
- Article 110(3): Decision of the Speaker
- What Does “Final” Mean?
- Article 110(4): Speaker’s Certificate
- Two Stages Requiring Certification
- Article 110 and Article 109
- Article 110 and Article 107
- Article 110 and Article 108
- Article 110 and Article 111
- Article 110 and Article 117
- Money Bill vs Financial Bill
- Money Bill vs Ordinary Bill
- Money Bill vs Appropriation Bill
- Important Constitutional Principle: “Only” Matters
- Judicial Review and Money Bill Classification
- Important Distinctions
- Common Confusions
- Article at a Glance
- Quick Revision
- Conclusion
Article 110 also specifies matters that can be included in a Money Bill, excludes certain provisions from automatically making a Bill a Money Bill, makes the Speaker’s decision on the classification final, and requires the Speaker’s certificate to accompany every Money Bill at specified stages.
Meaning of Article 110
Article 110 lays down the constitutional test for determining whether a Bill is a Money Bill.
A Bill qualifies as a Money Bill only when it contains only provisions dealing with all or any of the matters specifically listed in Article 110(1)(a) to (g).
This word “only” is particularly important.
A Bill does not become a Money Bill merely because it has some financial implications. Its provisions must fall within the matters specified in Article 110(1), including matters incidental to those matters under clause (g).
The seven categories are:
- taxation;
- government borrowing and guarantees;
- Consolidated Fund or Contingency Fund;
- appropriation from the Consolidated Fund of India;
- expenditure charged on the Consolidated Fund of India;
- receipt, custody, issue or audit of specified public money and accounts; and
- matters incidental to the above.
Article 110(1): Matters Covered by a Money Bill
Article 110(1) provides that a Bill shall be deemed to be a Money Bill if it contains only provisions dealing with all or any of the matters specified in sub-clauses (a) to (g).
Each category is constitutionally significant.
Article 110(1)(a): Taxation
A Bill is a Money Bill if it deals with:
- the imposition of any tax;
- the abolition of any tax;
- the remission of any tax;
- the alteration of any tax; or
- the regulation of any tax.
The provision therefore covers the principal legislative aspects of taxation.
Important point
The constitutional expression is “any tax”.
However, the Bill must satisfy the overall requirements of Article 110. The mere presence of a tax-related provision does not mean that every provision in the Bill can be unrelated to the matters specified in Article 110.
Article 110(1)(b): Government Borrowing and Guarantees
A Bill is also a Money Bill if it deals with:
- regulation of the borrowing of money by the Government of India;
- the giving of any guarantee by the Government of India; or
- amendment of the law concerning financial obligations undertaken or to be undertaken by the Government of India.
This provision concerns the financial obligations of the Union Government.
It therefore covers legislation regulating government borrowing and guarantees, as well as laws dealing with the Union Government’s financial obligations.
Article 110(1)(c): Consolidated Fund and Contingency Fund
A Bill may qualify as a Money Bill if it deals with:
- the custody of the Consolidated Fund of India;
- the custody of the Contingency Fund of India;
- payment of money into either Fund; or
- withdrawal of money from either Fund.
The provision therefore concerns the constitutional management of these two Union funds.
Consolidated Fund of India
The Consolidated Fund is the principal fund into which the revenues received by the Government of India, loans raised by it and money received in repayment of loans are credited, subject to the constitutional scheme.
Contingency Fund of India
The Contingency Fund is available for certain urgent and unforeseen expenditure, subject to constitutional and statutory arrangements.
Article 110(1)(c) specifically covers their custody and the payment of money into or withdrawal of money from them.
Article 110(1)(d): Appropriation from the Consolidated Fund of India
A Bill is a Money Bill if it deals with the appropriation of moneys out of the Consolidated Fund of India.
“Appropriation” refers to the legal authority to withdraw specified amounts from the Consolidated Fund for particular purposes.
This provision is closely connected with Article 114, which deals with Appropriation Bills.
Article 110(1)(d) and Appropriation Bills
An Appropriation Bill authorises withdrawal from the Consolidated Fund of India of amounts required to meet grants made by the Lok Sabha and expenditure charged on that Fund, subject to the constitutional limitations.
Such legislation falls within the Money Bill framework because appropriation from the Consolidated Fund is expressly included in Article 110(1)(d).
Article 110(1)(e): Charged Expenditure
A Bill is a Money Bill if it deals with:
- declaring any expenditure to be expenditure charged on the Consolidated Fund of India; or
- increasing the amount of any such expenditure.
The Constitution identifies certain expenditure as charged on the Consolidated Fund of India.
Such expenditure is not submitted to the vote of Parliament, although it may be discussed in either House under Article 113.
Article 110(1)(e) specifically concerns legislation dealing with the constitutional status or amount of such charged expenditure.
Article 110(1)(f): Receipt, Custody, Issue and Audit of Public Money
Article 110(1)(f) covers:
- the receipt of money on account of the Consolidated Fund of India;
- the receipt of money on account of the Public Account of India;
- the custody of such money;
- the issue of such money; or
- the audit of the accounts of the Union or of a State.
This is broader than taxation or appropriation alone.
It includes certain matters concerning public accounts and the audit of Union and State accounts.
Article 110(1)(g): Incidental Matters
Article 110(1)(g) covers any matter incidental to any of the matters specified in sub-clauses (a) to (f).
This provision allows provisions that are genuinely incidental to the specified financial matters to be included in a Money Bill.
However, the word “incidental” does not mean that unrelated subjects can be added merely because they appear alongside financial provisions.
The overall requirement of Article 110(1) remains that the Bill must contain only provisions dealing with the matters covered by the clause.
The Seven Categories at a Glance
| Clause | Matter covered |
|---|---|
| Article 110(1)(a) | Imposition, abolition, remission, alteration or regulation of any tax |
| Article 110(1)(b) | Union Government borrowing, guarantees and financial obligations |
| Article 110(1)(c) | Custody of Consolidated Fund or Contingency Fund; payment into or withdrawal from them |
| Article 110(1)(d) | Appropriation of money out of the Consolidated Fund of India |
| Article 110(1)(e) | Declaring or increasing expenditure charged on the Consolidated Fund |
| Article 110(1)(f) | Receipt, custody or issue of specified public money and audit of Union or State accounts |
| Article 110(1)(g) | Matters incidental to clauses (a)–(f) |
Article 110(2): Matters That Do Not By Themselves Make a Bill a Money Bill
Article 110(2) specifically identifies certain matters which, by themselves, do not make a Bill a Money Bill.
A Bill shall not be deemed to be a Money Bill merely because it provides for:
- imposition of fines or other pecuniary penalties;
- demand or payment of fees for licences; or
- demand or payment of fees for services rendered.
It also does not become a Money Bill merely because it provides for the imposition, abolition, remission, alteration or regulation of a tax by a local authority or body for local purposes.
These exclusions prevent the Money Bill classification from being triggered merely because a Bill contains an ordinary financial consequence.
Fines and Pecuniary Penalties
A Bill imposing fines or other pecuniary penalties is not, merely for that reason, a Money Bill.
For example, a law imposing a monetary penalty for violation of a regulatory requirement does not become a Money Bill simply because the penalty involves payment of money.
The constitutional distinction is between a financial penalty and the specific matters listed in Article 110(1).
Licence Fees and Service Fees
Similarly, the mere imposition or collection of:
- licence fees; or
- fees for services rendered
does not make a Bill a Money Bill.
This is another important distinction between a financial provision and a Money Bill.
Local Taxes
Article 110(2) also provides that a Bill does not become a Money Bill merely because it provides for the imposition, abolition, remission, alteration or regulation of a tax by a local authority or body for local purposes.
The constitutional Money Bill classification therefore cannot be based solely on such local taxation provisions.
Article 110(2) vs Article 110(1)
The relationship can be understood as follows:
Article 110(1) → matters that can make a Bill a Money Bill
Article 110(2) → matters that do not make a Bill a Money Bill merely because they are present
Both clauses must be considered when determining the constitutional character of a Bill.
Article 110(3): Decision of the Speaker
Article 110(3) provides:
If any question arises as to whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People shall be final.
This gives the Speaker a constitutionally specified role in determining the classification of a Bill.
The provision is important because the classification has major procedural consequences.
Once a Bill is treated as a Money Bill:
- it must originate in the Lok Sabha;
- the Rajya Sabha can only make recommendations;
- the Rajya Sabha has 14 days to return it;
- no joint sitting is available under Article 108.
What Does “Final” Mean?
Article 110(3) expressly states that the Speaker’s decision is final.
The word “final” must be understood within the constitutional framework, including the role of constitutional courts in reviewing constitutional questions.
The Speaker’s certification does not transform an otherwise non-Money Bill into a Money Bill merely by declaration. The constitutional requirements of Article 110 remain the substantive standard.
Article 110(4): Speaker’s Certificate
Article 110(4) requires that every Money Bill carry the certificate of the Speaker of the House of the People, signed by the Speaker, stating that it is a Money Bill.
The certificate must be endorsed:
- when the Bill is transmitted to the Rajya Sabha under Article 109; and
- when the Bill is presented to the President for assent under Article 111.
This provides a formal constitutional certification of the Bill’s status.
Two Stages Requiring Certification
| Stage | Requirement |
|---|---|
| Transmission to Rajya Sabha | Speaker’s certificate must be endorsed |
| Presentation to President for assent | Speaker’s certificate must again be endorsed |
The certificate is therefore required at both constitutionally specified stages.
Article 110 and Article 109
These Articles should always be studied together.
Article 110 → defines a Money Bill
Article 109 → provides the special procedure for passing a Money Bill
Once a Bill falls within Article 110, Article 109 determines the special relationship between the Lok Sabha and Rajya Sabha.
Article 110 and Article 107
Article 107 establishes the general procedure for introduction and passage of Bills.
However, Article 107 itself is subject to the special provisions concerning Money Bills.
Therefore, a Money Bill does not follow the ordinary legislative procedure in the same way as an ordinary Bill.
Article 110 and Article 108
Article 108 provides for joint sittings in certain cases of disagreement between the Houses.
However, Article 108 expressly excludes Money Bills.
Therefore:
Money Bill → no joint sitting
The Rajya Sabha’s disagreement or recommendations cannot lead to a joint sitting under Article 108.
Article 110 and Article 111
Article 111 deals with the President’s assent to Bills.
Article 110(4) requires the Speaker’s Money Bill certificate when the Bill is presented to the President for assent.
There is also an important distinction:
Under Article 111, the President may return a Bill for reconsideration only if it is not a Money Bill.
Therefore, a Money Bill does not fall within the President’s power to return a Bill under the proviso to Article 111.
Article 110 and Article 117
Article 117 deals with Financial Bills.
Not every Financial Bill is a Money Bill.
A Financial Bill may contain financial provisions without satisfying the strict constitutional requirements of Article 110.
Therefore:
Money Bill ⊂ Financial legislation
but
Not every Financial Bill is a Money Bill.
The classification must be made according to the constitutional requirements rather than merely by looking at whether the Bill concerns money.
Money Bill vs Financial Bill
| Point | Money Bill | Financial Bill |
|---|---|---|
| Main provision | Article 110 | Article 117 |
| Definition | Article 110(1) | Article 117 categories |
| Introduction | Lok Sabha only | Depends on category under Article 117 |
| Rajya Sabha role | Recommendations only | Can have a fuller legislative role depending on the Bill |
| Joint sitting | Not available | May be available where constitutionally applicable |
| Speaker’s Money Bill certificate | Required | Not applicable merely because it is a Financial Bill |
| Must contain only Article 110 matters? | Yes | No |
Money Bill vs Ordinary Bill
| Point | Money Bill | Ordinary Bill |
|---|---|---|
| Definition | Article 110 | No equivalent special definition |
| Introduction | Lok Sabha only | Either House |
| Rajya Sabha | Recommendations only | Full legislative participation |
| Rajya Sabha time | 14 days | No equivalent constitutional limit |
| Joint sitting | Not permitted | Available in specified cases |
| Speaker’s certificate | Required | Not required |
| President’s power to return | Not available under Article 111 proviso | Available for a non-Money Bill |
Money Bill vs Appropriation Bill
An Appropriation Bill specifically deals with appropriation from the Consolidated Fund of India and therefore falls within Article 110(1)(d).
However, “Money Bill” is the broader constitutional classification under Article 110.
An Appropriation Bill is therefore a Money Bill, but the terms should not simply be treated as synonymous.
Important Constitutional Principle: “Only” Matters
One of the most important words in Article 110(1) is “only”.
The Bill must contain only provisions dealing with the matters specified in Article 110(1)(a) to (g).
This means that a Bill cannot be classified as a Money Bill merely because it contains one financial provision from Article 110(1) while also containing unrelated substantive provisions.
The incidental-matters provision in Article 110(1)(g) permits matters genuinely incidental to the specified financial matters, but it does not create a general licence to include unrelated subjects.
Judicial Review and Money Bill Classification
The classification of a Bill as a Money Bill can have significant constitutional consequences because it changes the role of the Rajya Sabha and the legislative procedure.
The Supreme Court has therefore considered the constitutional limits surrounding Money Bills and the scope of judicial review.
In Rojer Mathew v. South Indian Bank Ltd., the Supreme Court considered a challenge involving the Money Bill route and referred important questions concerning the interpretation of Article 110 to a larger Bench.
The decision is important for understanding the constitutional debate concerning the scope of the Money Bill classification and the Speaker’s certification.
The constitutional text nevertheless remains the starting point: a Bill must satisfy the requirements of Article 110.
Important Distinctions
Money Bill vs Bill with financial implications
A Bill does not become a Money Bill merely because it involves government expenditure or has financial consequences.
It must satisfy Article 110.
Tax Bill vs Money Bill
A Bill dealing with taxation can fall within Article 110(1)(a), but the complete contents of the Bill must still satisfy the constitutional requirements.
The presence of a tax provision alone does not automatically validate every other provision contained in the Bill.
Fine vs tax
A fine or pecuniary penalty is not a tax.
Article 110(2) expressly provides that a Bill does not become a Money Bill merely because it imposes fines or other pecuniary penalties.
Fee vs tax
Licence fees and fees for services rendered are treated separately under Article 110(2).
The mere presence of such fees does not make a Bill a Money Bill.
Money Bill vs Financial Bill
A Money Bill must satisfy Article 110.
Financial Bills are governed by Article 117 and can cover a wider range of financial matters.
Speaker’s certificate vs definition
The Speaker’s certificate confirms the Bill’s classification, but the substantive constitutional definition is contained in Article 110(1).
Money Bill vs Appropriation Bill
An Appropriation Bill deals specifically with appropriation from the Consolidated Fund and falls within the Money Bill framework. The terms should nevertheless not be treated as identical in every context.
Common Confusions
What makes a Bill a Money Bill?
A Bill is a Money Bill if it contains only provisions dealing with all or any of the matters specified in Article 110(1)(a) to (g).
Can a Bill become a Money Bill merely because it involves money?
No.
Financial implications alone are insufficient. The Bill must fall within the specific categories in Article 110.
Can a Bill containing fines be a Money Bill?
Not merely because it contains fines or other pecuniary penalties. Article 110(2) expressly excludes such classification on that basis alone.
Are licence fees enough to make a Bill a Money Bill?
No.
A Bill does not become a Money Bill merely because it provides for licence fees or fees for services rendered.
Can a local tax provision alone make a Bill a Money Bill?
No.
Article 110(2) expressly excludes a Bill from Money Bill classification merely because it deals with a tax imposed by a local authority or body for local purposes.
Who decides whether a Bill is a Money Bill?
Under Article 110(3), the Speaker of the Lok Sabha decides the question, and the Constitution states that the decision is final.
Is the Speaker’s certificate required?
Yes.
Every Money Bill must bear the Speaker’s certificate when transmitted to the Rajya Sabha and again when presented to the President for assent.
Can a Money Bill originate in Rajya Sabha?
No.
Under Article 109, a Money Bill cannot be introduced in the Rajya Sabha.
Can Rajya Sabha reject a Money Bill?
No.
Its role under Article 109 is limited to making recommendations within 14 days.
Can there be a joint sitting on a Money Bill?
No.
Article 108 expressly excludes Money Bills from the joint-sitting procedure.
Is every Financial Bill a Money Bill?
No.
Financial Bills are governed by Article 117, while Money Bills must satisfy the narrower requirements of Article 110.
Can the President return a Money Bill for reconsideration?
No.
The proviso to Article 111 permits the President to return a Bill only if it is not a Money Bill.
Article at a Glance
| Point | Position |
|---|---|
| Article | Article 110 |
| Subject | Definition of Money Bills |
| Core test | Bill must contain only provisions dealing with Article 110(1) matters |
| Clause (a) | Taxation |
| Clause (b) | Union Government borrowing, guarantees and financial obligations |
| Clause (c) | Consolidated Fund and Contingency Fund |
| Clause (d) | Appropriation from Consolidated Fund of India |
| Clause (e) | Charged expenditure |
| Clause (f) | Receipt, custody, issue of specified public money and audit of accounts |
| Clause (g) | Matters incidental to clauses (a)–(f) |
| Article 110(2) | Certain matters do not make a Bill a Money Bill merely by their inclusion |
| Decision-maker | Speaker of the Lok Sabha |
| Speaker’s decision | Constitutionally declared final |
| Certificate | Required at transmission to Rajya Sabha and presentation to President |
| Introduction | Lok Sabha only under Article 109 |
| Rajya Sabha role | Recommendations only |
| Joint sitting | Not available |
| Related Article | Article 109 |
| Financial Bills | Article 117 |
Quick Revision
- Article 110 defines a Money Bill.
- The Bill must contain only provisions dealing with matters specified in Article 110(1)(a)–(g).
- (a): taxation.
- (b): Union Government borrowing, guarantees and financial obligations.
- (c): Consolidated Fund and Contingency Fund.
- (d): appropriation from the Consolidated Fund of India.
- (e): declaring or increasing expenditure charged on the Consolidated Fund.
- (f): receipt, custody or issue of specified public money and audit of Union or State accounts.
- (g): matters incidental to the matters in (a)–(f).
- Fines and pecuniary penalties do not by themselves make a Bill a Money Bill.
- Licence fees and service fees do not by themselves make a Bill a Money Bill.
- A local tax provision does not by itself make a Bill a Money Bill.
- Under Article 110(3), the Speaker of the Lok Sabha decides whether a Bill is a Money Bill, and the Constitution declares the decision final.
- Under Article 110(4), the Speaker must certify every Money Bill when it is transmitted to Rajya Sabha and when it is presented to the President.
- Article 109 provides the special procedure for Money Bills.
- A Money Bill cannot originate in Rajya Sabha.
- Rajya Sabha has 14 days to return it with recommendations.
- Rajya Sabha’s recommendations are not binding on Lok Sabha.
- A Money Bill cannot be subjected to a joint sitting under Article 108.
- Article 117 Financial Bills are not synonymous with Money Bills.
- The word “only” in Article 110(1) is a crucial constitutional limitation.
Conclusion
Article 110 is the constitutional gateway for determining whether a Bill receives the special treatment reserved for Money Bills. Its seven categories narrowly identify the financial matters that can fall within the definition, while Article 110(2) prevents ordinary fines, fees and local taxation from automatically producing Money Bill status. The Speaker has the constitutionally assigned role in determining the classification and certifying the Bill. Because classification as a Money Bill significantly limits the Rajya Sabha’s legislative role, Article 110 must be read carefully with Articles 109, 111 and 117, rather than treating every Bill involving financial matters as a Money Bill.
