With reference to Finance Bill and Money Bill in the Indian Parliament consider the following statements: 1. When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill. 2. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations. 3. In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill. How many of the above statements are correct?
Explanation
Statement 1 is correct: While a Finance Bill (Category I under Art 117) is introduced only in the Lok Sabha (similar to a Money Bill), it is passed according to the ordinary legislative procedure. Therefore, the Rajya Sabha has the power to reject or amend it.
Statement 2 is correct: A Money Bill (Article 110) cannot be rejected or amended by the Rajya Sabha. It can only make recommendations which the Lok Sabha may accept or reject.
Statement 3 is incorrect: While a Joint Sitting is not provided for Money Bills, it is available for Finance Bills. However, it is not "necessary" (mandatory) to hold one. Under Article 108, the President "may" summon a Joint Sitting to resolve the deadlock, but is not obliged to do so; the bill could simply be allowed to lapse.