In the Westminster system (and, colloquially, in the United States), a money bill or supply bill is a bill that solely concerns taxation or government spending (also known as appropriation of money), as opposed to changes in public law.
It is often a constitutional convention that the upper house 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. [1]
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.
A supply bill in the Australian System is required to pass the House of Representatives, the Senate and be signed by the Governor-General. 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, and can request the House of Representatives to modify the 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.
A money bill is specifically defined by Article 81 of the Constitution of Bangladesh. The President of Bangladesh can send back all bills passed by the Parliament for a review except a money bill. However, a money bill can be introduced to the Parliament only at the President's recommendation. Additionally, tax can only be levied by the Parliament. [2]
Although Parliament may pass money bills, under section 54 of the Constitution Act, 1867 funds can be appropriated only on the recommendation of the Governor-General. This has resulted in the convention that only ministers introduce money bills. [3]
Procedure for a Money Bill:
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 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 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. [6] This argument is further supported by the fact that in 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. [7] 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. [8] The five judge bench decided that the Aadhar Bill was a Money Bill by a vote of 4–1.
The 1937 Constitution of Ireland defines a money bill (Irish : bille airgid) as one concerning only specified financial matters. The Seanad (upper house of the Oireachtas or parliament) has restricted powers over money bills, and the "only" restriction prevents the Government from tacking onto a money bill some non-financial provision which it would like to bypass Seanad scrutiny. [9] The specified financial matters are any of the following: [10] [11]
the imposition, repeal, remission, alteration or regulation of taxation; the imposition for the payment of debt or other financial purposes of charges on public moneys or the variation or repeal of any such charges; supply; the appropriation, receipt, custody, issue or audit of accounts of public money; the raising or guarantee of any loan or the repayment thereof
The specification is based on that in the UK's Parliament Act 1911. [12] There is an exclusion for revenue and spending by local authorities. [13] The main annual money bills are the Finance Bill for implementing the budget and the Appropriation Bill for implementing the estimates. [14] The Constitution requires all appropriation of public funds to be pre-approved by the Government in the form of a "money message" signed by the Taoiseach. [15] Thus, if a bill extends the powers of a Department of State, it is not a money bill, [16] but if it also imposes a new charge on the public, it still requires a money message. [15] [17]
In the Oireachtas, money bills must be introduced in the Dáil (lower house) [18] The Seanad has 90 days to process other Dáil bills but only 21 days for a money bill; it cannot amend the bill but only recommend amendments for the Dáil to accept or reject. [19] The President's power under Article 26 to refer bills to the Supreme Court does not apply to money bills. [20] The Ceann Comhairle (Dáil speaker) certifies whether a new bill is a money bill. [21] There is no judicial review of the Ceann Comhairle's ruling; [22] if the Seanad disagrees with it, the President may establish a Committee of Privileges to adjudicate, with equal membership from both houses and chaired by a Supreme Court judge. [23] No such committee has been established under the 1937 constitution, [9] but one was established for a 1935 bill under the 1922 Constitution of the Irish Free State, [9] [24] which contained similar provisions until the 1936 abolition of the Free State Seanad made the distinction of money bills moot since they were henceforth treated the same as other bills. [12]
In the United Kingdom, section 1(1) of the Parliament Act 1911 provides that the House of Lords may not delay a money bill more than a month. It is at the discretion of the Speaker of the House of Commons to certify which bills are money bills, and his decision is final and is not subject to challenge. Section 1(2) of the Act states:
A Money Bill means a Public Bill which in the opinion of the Speaker of the House of Commons contains only provisions dealing with all or any of the following subjects, namely, the imposition, repeal, remission, alteration, or regulation of taxation; the imposition for the payment of debt or other financial purposes of charges on the Consolidated Fund, the National Loans Fund or on money provided by Parliament, or the variation or repeal of any such charges; supply; the appropriation, receipt, custody, issue or audit of accounts of public money; the raising or guarantee of any loan or the repayment thereof; or subordinate matters incidental to those subjects or any of them. In this subsection the expressions "taxation," "public money," and "loan" respectively do not include any taxation, money, or loan raised by local authorities or bodies for local purposes. [25]
The Parliament Act 1911 was the product of the political crisis of 1909. The People's Budget of 1909 proposed by the House of Commons was rejected by the House of Lords. A government whose budget (that is the Finance Bill) is rejected can only resign or dissolve Parliament, because without money it is impossible to govern. The rejection of the Finance Bill in 1909 by the Lords prompted the then British government to initiate steps to curtail the powers of the House of Lords in this regard. This is evident from the long title of the 1911 Act, which begins: "An Act to make provision with respect to the powers of the House of Lords in relation to those of the House of Commons ...". [26]
The reference to the National Loans Fund was inserted on 1 April 1968 [27] by section 1(5) of the National Loans Act 1968.
For this purpose, the expression "Public Bill" does not include any bill for confirming a provisional order.
Bradley and Ewing said that the statutory definition of "Money Bill" is "strictly interpreted". [28] Most annual Finance Bills have not been certified to be money bills. [29] [30] [31]
While the United States of America is not a parliamentary democracy, the Origination Clause of the U.S. Constitution requires that all bills raising revenue originate in the House of Representatives, consistent with British constitutional practice; by convention, appropriation bills (bills that spend money) also originate in the House. Unlike in most Westminster systems, there are no limits on the Senate's ability to amend revenue bills or any requirement for the Senate to approve such bills within a certain timeframe. Both appropriations and revenue bills are often referred to as money bills to contrast them with authorization bills. The U.S. Supreme Court in United States v. Munoz-Flores (1990) held that: "A law passed in violation of the Origination Clause would thus be no more immune from judicial scrutiny because it was passed by both Houses and signed by the President than would be a law passed in violation of the First Amendment". [32]
Money bills are to be introduced by a Minister of the Crown. '
An act of parliament, as a form of primary legislation, is a text of law passed by the legislative body of a jurisdiction. In most countries with a parliamentary system of government, acts of parliament begin as a bill, which the legislature votes on. Depending on the structure of government, this text may then be subject to assent or approval from the executive branch.
The Rajya Sabha, also known as the Council of States, is the upper house of the bicameral Parliament of India. As of 2023, it has a maximum membership of 245, of which 233 are elected by the legislatures of the states and union territories using single transferable votes through open ballots, while the president can appoint 12 members for their contributions to art, literature, science, and social service. The total allowed capacity is 250 according to article 80 of the Indian Constitution. The current potential seating capacity of the Rajya Sabha is 245, after the Jammu and Kashmir (Reorganisation) Act. The maximum seats of 250 members can be filled up at the discretion and requirements of the house of Rajya Sabha.
The Lok Sabha, also known as 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-past-the-post system to represent their respective constituencies, and they hold their seats for five years or until the body is dissolved by the President on the advice of the council of ministers. The house meets in the Lok Sabha Chambers of the Parliament House, New Delhi.
The 7th executive council of the Irish Free State was the Executive Council formed after the general election to the 8th Dáil held on 24 January 1933. It was led by Fianna Fáil leader Éamon de Valera as President of the Executive Council, who had first taken office in the Irish Free State after the 1932 general election. It lasted for 1,625 days.
In many states with political systems derived from the Westminster system, a consolidated fund or consolidated revenue fund is the main bank account of the government. General taxation is taxation paid into the consolidated fund, and general spending is paid out of the consolidated fund.
Seanad Éireann was the upper house of the Oireachtas (parliament) of the Irish Free State from 1922 to 1936. It has also been known simply as the Senate, First Seanad, Free State Senate or Free State Seanad. The Seanad was established under the 1922 Constitution of the Irish Free State. A number of constitutional amendments were made to change the manner of its election and its powers. It was eventually abolished in 1936 when it attempted to obstruct constitutional reforms favoured by the government. It sat, like its modern successor, in Leinster House.
The dissolution of a legislative assembly is the simultaneous termination of service of all of its members, in anticipation that a successive legislative assembly will reconvene later with possibly different members. In a democracy, the new assembly is chosen by a general election. Dissolution is distinct on the one hand from abolition of the assembly, and on the other hand from its adjournment or prorogation, or the ending of a legislative session, any of which begins a period of inactivity after which it is anticipated that the same members will reassemble. For example, the "second session of the fifth parliament" could be followed by the "third session of the fifth parliament" after a prorogation, but would be followed by the "first session of the sixth parliament" after a dissolution.
The Ninth Amendment of the Constitution Act 1984 is an amendment to the Constitution of Ireland that allowed for the extension of the right to vote in elections to Dáil Éireann to non-Irish citizens. It was approved by referendum on 14 June 1984, the same day as the European Parliament election, and signed into law on 2 August of the same year.
The Oireachtas of the Irish Free State was the legislature of the Irish Free State from 1922 until 1937. It was established by the 1922 Constitution of Ireland which was based from the Anglo-Irish Treaty. It was the first independent Irish Parliament officially recognised outside Ireland since the historic Parliament of Ireland which was abolished with the Acts of Union 1800.
A member of the Legislative Assembly (MLA) is a representative elected by the voters of an electoral district (constituency) to the legislature of State government in the Indian system of government. From each constituency, the people elect one representative who then becomes a member of the Legislative Assembly (MLA). Each state has between seven and nine MLAs for every Member of Parliament (MP) that it has in the Lok Sabha, the lower house of India's bicameral parliament. There are also members in three unicameral legislatures in Union Territories: the Delhi Legislative Assembly, Jammu and Kashmir Legislative Assembly and the Puducherry Legislative Assembly. Only a Member of the Legislative Assembly can work as a minister for more than 6 months. If a non-Member of the Legislative Assembly becomes a Chief Minister or a minister, he must become an MLA within 6 months to continue in the job. Only a Member of the Legislative Assembly can become the Speaker of the Legislature.
The granting, reserving or withholding of royal assent was one of the key roles, and potentially one of the key powers, possessed by the Governor-General of the Irish Free State. Until it was granted, no bill passed by the Oireachtas could complete its passage of enactment and become law.
This is a brief description of the lawmaking procedure in India.
A reading of a bill is a stage of debate on the bill held by a general body of a legislature.
National University of Ireland (NUI) is a university constituency in Ireland, which elects three senators to Seanad Éireann, the senate of the Oireachtas. Its electorate is the graduates of the university, which has a number of constituent universities. It previously elected members to the House of Commons of the United Kingdom (1918–1921), to the House of Commons of Southern Ireland (1921) and to Dáil Éireann (1922–1937).
Seanad Éireann is the senate of the Oireachtas, which also comprises the President of Ireland and Dáil Éireann.
The Representation of the People Act, 1951 is an act of Parliament of India to provide for the conduct of election of the Houses of Parliament and to the House or Houses of the Legislature of each State, the qualifications and disqualifications for membership of those Houses, what constitute corrupt practices and other offences at or in connection with such elections and the determination of disputes arising out of or in connection with such elections. It was introduced in Parliament by law minister Dr. B.R. Ambedkar. The Act was enacted by the provisional parliament under Article 327 of Indian Constitution, before the first general election.
Dáil Éireann is the lower house, and principal chamber, of the Oireachtas, which also includes the president of Ireland and a senate called Seanad Éireann. It consists of 160 members, each known as a Teachta Dála. TDs represent 39 constituencies and are directly elected for terms not exceeding five years, on the system of proportional representation by means of the single transferable vote (PR-STV). Its powers are similar to those of lower houses under many other bicameral parliamentary systems and it is by far the dominant branch of the Oireachtas. Subject to the limits imposed by the Constitution of Ireland, it has power to pass any law it wishes, and to nominate and remove the Taoiseach. Since 1922, it has met in Leinster House in Dublin.
The Aadhaar Act, 2016 is a money bill of the Parliament of India. It aims to provide legal backing to the Aadhaar unique identification number project. It was passed on 11 March 2016 by the Lok Sabha. Certain provisions of the Act came into force from 12 July 2016 and published in gazette of India on 12 September 2016.
The Parliament of India is bicameral. Concurrence of both houses are required to pass any bill. However, the framers of the Constitution of India anticipated situations of deadlock between the Rajya Sabha and the Lok Sabha. Therefore, the Constitution of India provides for Joint sittings of both the Houses to break the deadlock.
The Constitution Act, 1936 was an act of the Oireachtas (parliament) of the Irish Free State which abolished Seanad Éireann, the upper house of the Oireachtas, which thenceforth was unicameral, with Dáil Éireann as the sole house. The bill was introduced in 1934 by the Fianna Fáil government of Éamon de Valera, which was frustrated by the Seanad's repeated use of its power to delay legislation. In particular, Fianna Fáil favoured eliminating symbols of monarchy from the Free State, which the Seanad, with more Southern Unionist members, feared would antagonise the United Kingdom.