Regarding Money Bill, which of the following statements is not correct?

1. A bill shall be deemed to be money bill if it contains only provisions related to imposition, abolition, remission, alteration or regulation of any tax.
2. A Money Bill has provisions for the custody of the Consolidated Fund of India or the Contingency Fund of India.
3. A Money Bill is concerned with appropriation of money out of the Contingency Fund of India.
4. A Money Bill deals with the regulation of borrowing of money or giving of any guarantee by the government of India.

Explanation

Statement (c) is the correct answer

• A Bill is considered a Money Bill if it deals only with the following matters:
  1. The imposition, abolition, remission, alteration, or regulation of any tax.
  2. The regulation of:
     • Borrowing by the Government of India
     • Providing guarantees by the Government of India
     • Amendment of laws relating to financial obligations undertaken or proposed to be undertaken by the Government of India
  3. Custody of the Consolidated Fund of India or the Contingency Fund of India, including the payment of money into and withdrawal of money from these funds.
  4. Appropriation of money out of the Consolidated Fund of India
  5. Declaring any expenditure charged on the Consolidated Fund of India or the increasing amount of any such expenditure.
  6. Receipt of money on account of the Consolidated Fund of India or the public account of India or the custody or issue of such money or the audit of the accounts of the Union or of a State
  7. Any matter incidental to any of the matters specified in sub-clauses (a) to (f).

Answer: (c) A Money Bill is concerned with appropriation of money out of the Contingency Fund of India; Difficulty Level: Medium