Consider the following statements: 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?

The correct answer is B. Statements 1 and 2 are correct, and statement 3 is wrong.

• Statement 1 is correct. Under Article 109, the Rajya Sabha can only make recommendations on a Money Bill within 14 days. It cannot reject or amend it. If it does not return the bill within 14 days, the bill is deemed passed by both Houses. Lok Sabha may accept or reject its recommendations.
• Statement 2 is correct. Under Article 113, Demands for Grants are placed before the Lok Sabha alone. Only the Lok Sabha votes on them, which is why the Rajya Sabha cannot vote on them.
• Statement 3 is wrong. The Annual Financial Statement (Budget) under Article 112 is laid before both Houses. The Rajya Sabha takes part in the general discussion on the Budget. What it cannot do is vote on the Demands for Grants.

The core concept is the asymmetry of financial powers between the two Houses. The Lok Sabha holds the final say on money matters, which reflects the principle that the executive is accountable to the directly elected House. This is a standard Polity theme, and it links to Mains questions on the Money Bill route and on the dilution of Rajya Sabha's role in financial legislation.

Trap: Candidates often assume that because the Rajya Sabha cannot vote on demands, it has no role in the Budget at all. Statement 3 tests exactly this. The Rajya Sabha discusses the Budget but does not vote on demands.