Question

1.No money bill can be introduced in the Parliament without the recommendation of the President of India.
2.The Prime Minister appoints the Finance Commission for the distribution of taxes between the Union and states.
Which of the statements given above is/are correct?
A.1 only
B.2 only
C.Both 1 and 2
D.Neither 1 nor 2

Answer 1

Hint: Three kinds of bills come before the Parliament—ordinary bill, money bill and Constitutional Amendment bill. In case of ordinary and Constitutional Amendment bills, they can originate in either Houses of the Parliament. However, with a money bill, the legislative process is slightly different. A money bill can only be introduced in the Lok Sabha and the Speaker of the Lok Sabha has the final authority to determine whether a bill is a money bill or not. After the bill is passed by the Lok Sabha, it is sent to the Rajya Sabha for consideration and the Rajya Sabha has to send it back within 14 days with its recommendations which the Lok Sabha is free to accept or reject. If the Rajya Sabha fails to do so within the expiration deadline, the bill is directly sent to the President for their assent.
The Finance Commission is an autonomous body under the Government of India constituted to distribute the net proceeds of taxes between the Centre and states. The first Finance Commission was established in 1951 by then law minister, Dr B.R Ambedkar and till now there have been 15 finance commissions.

Complete Step by Step answer: Option A: is correct. According to Article 110 of the Constitution, a money bill can only be introduced in the Lok Sabha with prior recommendation of the President. After a money bill has been passed in the manner described earlier and reaches the President, the President cannot withhold their assent to it.
Option B: is incorrect. Not only is statement 1 true but statement 2 is false because the Finance Commission is appointed by the President of India, not the Prime Minister.
Option C: is incorrect because only statement 1 is true.
Option D: is incorrect because at least statement 1 is true.

Note: According to Article 280 of the Constitution which contains the provisions for the Finance Commission, it is stated that the Commission should consist of a Chairman and four other members.