Article 198 of CoI : Article 198: Special procedure in respect of Money Bills.

Explanation using Example

Example 1:

The state of Maharashtra is planning its annual budget, which includes various financial proposals such as new taxes, allocation of funds for infrastructure projects, and subsidies for farmers. The Finance Minister introduces the Money Bill in the Maharashtra Legislative Assembly.

1. The bill is debated and passed by the Legislative Assembly.
2. The bill is then sent to the Maharashtra Legislative Council for its recommendations.
3. The Legislative Council reviews the bill and suggests some changes, such as increasing the subsidy for farmers.
4. The Legislative Council returns the bill to the Legislative Assembly within 14 days with its recommendations.
5. The Legislative Assembly considers the recommendations and decides to accept the suggestion to increase the subsidy for farmers but rejects other recommendations.
6. The bill, with the accepted amendments, is deemed to have been passed by both Houses.

Example 2:

The state of Karnataka is introducing a new Money Bill to fund a large-scale public health initiative. The bill includes provisions for new taxes on luxury goods to raise the necessary funds.

1. The bill is introduced and passed by the Karnataka Legislative Assembly.
2. The bill is then sent to the Karnataka Legislative Council for its recommendations.
3. The Legislative Council reviews the bill but does not return it to the Legislative Assembly within the 14-day period.
4. Since the Legislative Council did not return the bill within the specified time, the bill is deemed to have been passed by both Houses in the form it was originally passed by the Legislative Assembly.
5. The new taxes on luxury goods are implemented, and the funds are allocated to the public health initiative as planned.