UPSC Prelims 2015 Question:

1. The Rajya Sabha has no power either to reject or to amend a Money Bill.
2. The Rajya Sabha cannot vote on the Demands for Grants.
3. The Rajya Sabha cannot discuss the Annual Financial Statement.
   
   

Which of the statements given above is/are correct ?

Explanation:

A Money Bill may only be introduced in Lok Sabha, on the recommendation of the President. It must be passed in Lok Sabha by a simple majority of all members present and voting.  Following this, it may be sent to the Rajya Sabha for its recommendations, which Lok Sabha may reject if it chooses to.  If such recommendations are not given within 14 days, it will be deemed to be passed by Parliament.

1. The Rajya Sabha has no power to reject or amend a Money Bill.  However, a Financial Bill must be passed by both Houses of Parliament. So, statement 1 is correct.
2. The finance minister presents the budget with a speech known as the ‘budget speech’. At the end of the speech in the Lok Sabha, the budget is laid before the Rajya Sabha, which can only discuss it and has no power to vote on the demands for grants. So, statement 2 is correct.
   
   
3. The Constitution refers to the budget as the ‘annual financial statement’. The general discussion on budget begins a few days after its presentation. It takes place in both the Houses of Parliament and lasts usually for three to four days. So, statement 3 is not correct.
   
   

Therefore, option (2) is the correct answer.

Subject: Polity | Bills and Acts