In the
Westminster system (and, colloquially, in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...
), a money bill or supply bill is a
bill that solely concerns
taxation
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, o ...
or
government spending
Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual ...
(also known as
appropriation of money), as opposed to changes in public law.
Conventions
It is often a
constitutional convention Constitutional convention may refer to:
* Constitutional convention (political custom), an informal and uncodified procedural agreement
*Constitutional convention (political meeting), a meeting of delegates to adopt a new constitution or revise an e ...
that the
upper house
An upper house is one of two chambers of a bicameral legislature, the other chamber being the lower house.''Bicameralism'' (1997) by George Tsebelis The house formally designated as the upper house is usually smaller and often has more restric ...
may not block a money bill. There is often another requirement that non-money bill-type clauses may not be attached to a money bill. The rationale behind this convention is that the upper house, being appointed or indirectly elected, should not have any right to decide on taxation and public expenditure-related policies as may be framed by the directly elected representatives of the lower house. Therefore, money bills are an exception to the general rule that for a bill to be enacted into a law, it has to be approved by both the lower and upper Houses of Parliament.
Loss of supply in the
lower house is conventionally considered to be an expression of the house's
loss of confidence in the government, resulting in the government's fall.
Requirements in Westminster systems
Australia
A supply bill in the Australian System is required to pass the
House of Representatives
House of Representatives is the name of legislative bodies in many countries and sub-national entitles. In many countries, the House of Representatives is the lower house of a bicameral legislature, with the corresponding upper house often c ...
, the
Senate
A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the e ...
and be signed by the
Governor-General
Governor-general (plural ''governors-general''), or governor general (plural ''governors general''), is the title of an office-holder. In the context of governors-general and former British colonies, governors-general are appointed as viceroy t ...
. The Senate has no power or ability to introduce or modify a supply bill, but has the ability to block or defer the passing of a supply bill. The most famous instance where supply was blocked was during the
1975 constitutional crisis. This has resulted in agreements between political parties to prevent the blockage of supply bills through the Senate.
Bangladesh
A money bill is specifically defined by Article 81 of the
Constitution of Bangladesh
The Constitution of Bangladesh ( bn, বাংলাদেশের সংবিধান — ), officially the Constitution of the People's Republic of Bangladesh ( bn, গণপ্রজাতন্ত্রী বাংলাদেশের ...
. The
President of Bangladesh
The president of Bangladesh ( bn, বাংলাদেশের রাষ্ট্রপতি — ) officially the President of the People's Republic of Bangladesh ( bn, গণপ্রজাতন্ত্রী বাংলাদেশে ...
can send back all bills passed by the
Parliament
In modern politics, and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: representing the electorate, making laws, and overseeing the government via hearings and inquiries. ...
for a review except a money bill. However, a money bill can be introduced to the
Parliament
In modern politics, and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: representing the electorate, making laws, and overseeing the government via hearings and inquiries. ...
only at the President's recommendation. Additionally, tax can only be levied by the Parliament.
Canada
Although Parliament may pass money bills, under section 54 of the
Constitution Act, 1867
The ''Constitution Act, 1867'' (french: Loi constitutionnelle de 1867),''The Constitution Act, 1867'', 30 & 31 Victoria (U.K.), c. 3, http://canlii.ca/t/ldsw retrieved on 2019-03-14. originally enacted as the ''British North America Act, 186 ...
funds can be appropriated only on the recommendation of the
Governor-General
Governor-general (plural ''governors-general''), or governor general (plural ''governors general''), is the title of an office-holder. In the context of governors-general and former British colonies, governors-general are appointed as viceroy t ...
. This has resulted in the
convention
Convention may refer to:
* Convention (norm), a custom or tradition, a standard of presentation or conduct
** Treaty, an agreement in international law
* Convention (meeting), meeting of a (usually large) group of individuals and/or companies in a ...
that only ministers introduce money bills.
India
Procedure for a Money Bill:
#Money Bills can be introduced only in
Lok Sabha
The Lok Sabha, constitutionally the House of the People, is the lower house of India's bicameral Parliament, with the upper house being the Rajya Sabha. Members of the Lok Sabha are elected by an adult universal suffrage and a first-pas ...
(the directly elected 'people's house' of the Indian Parliament).
#Money bills passed by the Lok Sabha are sent to the
Rajya Sabha
The Rajya Sabha, wikisource:Constitution of India/Part V#Article 80, constitutionally the Council of States, is the upper house of the bicameral Parliament of India. , it has a maximum membership of 245, of which 233 are elected by the legisl ...
(the upper house of parliament, elected by the state and territorial legislatures or appointed by the
president
President most commonly refers to:
*President (corporate title)
* President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese f ...
). The Rajya Sabha may not amend money bills but can recommend amendments. To make sure that Rajya Sabha doesn't amend the bill by adding some non-money matters (known as Financial Bill), the
Speaker of the Lok Sabha
The speaker of the Lok Sabha ( IAST: ) is the presiding officer and the highest official of the Lok Sabha, the lower house of the Parliament of India. The speaker is elected generally in the first meeting of the Lok Sabha following general e ...
certifies the bill as a money bill before sending it to the upper house, and the decision of the Speaker is binding on both the Houses. A money bill must be returned to the Lok Sabha within 14 days, or the bill is deemed to have passed both houses in the form it was originally passed by the Lok Sabha.
#When a Money Bill is returned to the Lok Sabha with the recommended amendments of the Rajya Sabha, it is open to the Lok Sabha to accept or reject any or all of the recommendations.
#A money bill is deemed to have passed both houses with any recommended amendments the Lok Sabha chooses to accept, and without any that it chooses to decline.
# The definition of "Money Bill" is given in Article 110 of
The Constitution of India. A financial bill is not a Money Bill unless it fulfills the requirements of Article 110.
#The Speaker of the Lok Sabha certifies if a financial bill is a Money Bill or not.
#Policy cut motion - disapproval of the given policy. Symbolically, the members demand that the amount of the demand be reduced to 1 INR. They may also suggest an alternative policy.
#Economy cut motion - it is demanded that the amount of the policy be reduced by a specified amount.
#Token cut motion - used to show specific grievance against the government. Also states that the amount of the demand be reduced by Rs. 100.
#A money bill can only be introduced in parliament with prior permission of the
President of India
The president of India ( IAST: ) is the head of state of the Republic of India. The president is the nominal head of the executive, the first citizen of the country, as well as the commander-in-chief of the Indian Armed Forces. Droupadi Mur ...
.
#Finance bill is supposed to be enacted within 75 days (including the Parliament voting and the President assenting).
#Money bill cannot be returned by the President to the parliament for its reconsideration, as it is presented in the Lok Sabha with his permission.
The concept of money bills in India came to the forefront during the enactment of the Aadhar Act, 2016. In spite of resistance by the opposition, the Aadhaar Bill was certified as a ‘money bill’ by the Speaker of the Lower House. The Upper House proposed certain amendments, but ultimately the
BJP-dominated Lower House rejected the amendments suggested by the Upper House and unilaterally enacted the Aadhar Act, 2016. Immediately thereafter,
Jairam Ramesh, a senior
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...
leader, challenged the speaker’s decision to treat the Aadhar Bill as a ‘money bill’ before the Supreme Court of India. Article 110(3) of the Constitution of India categorically states that 'if any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final'. Therefore, one of the prime constitutional questions before the Supreme Court is whether it can review the speaker’s certificate classifying a bill as a ‘money bill’. In three prior cases, the
Supreme Court of India
The Supreme Court of India (IAST: ) is the supreme judicial authority of India and is the highest court of the Republic of India under the constitution. It is the most senior constitutional court, has the final decision in all legal matters ...
has refused to review the Speaker's certificate. However, some commentators have argued that the Court's earlier judgements were incorrect and Article 110(3) made the Speaker’s decision "final" for the purpose of the two Houses of the Parliament, not for the Supreme Court of India. This argument is further supported by the fact that i
Kihoto Hollohan vs Zachillhu (AIR 1993 SC 412) the "final" decision of the speaker regarding disqualification of members of the House under the Tenth Schedule of the Indian Constitution was held to be a judicial decision subject to judicial review. This suggests that the "final" status given by the Indian constitution does not automatically immune the Indian speaker's decision or certificate from judicial review. In view of this crucial constitutional question, it has been suggested that the Supreme Court in ''Jairam Ramesh v. Union of India'' should create a constitution bench of at least nine judges to settle the law on this issue. The five judge bench decided that the Aadhar Bill was a Money Bill by a vote of 4–1.
Republic of Ireland
In the
Republic of Ireland
Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 Counties of Ireland, counties of the island of Ireland. The capital and largest city is Dublin, on the eastern ...
, the
Senate
A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the e ...
may not delay a money bill () more than 21 days. The
President of Ireland
The president of Ireland ( ga, Uachtarán na hÉireann) is the head of state of Ireland and the supreme commander of the Irish Defence Forces.
The president holds office for seven years, and can be elected for a maximum of two terms.Constitu ...
may not refuse to sign a money bill and may not refer such a bill to the
Supreme Court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
to test its
constitutionality
Constitutionality is said to be the condition of acting in accordance with an applicable constitution; "Webster On Line" the status of a law, a procedure, or an act's accordance with the laws or set forth in the applicable constitution. When l ...
. Procedures exist for resolution of disputes as to whether a Bill is a money bill. Since the 1922 constitution (as amended by the
Constitution (Amendment No. 12) Act 1930) and under the 1937 constitution, such disputes can be resolved by a committee on privileges.
United Kingdom
In the