Actual Article
Article 275: Grants from the Union to certain States
- Such sums as Parliament may by law provide shall be charged on the Consolidated Fund of India in each year as grants-in-aid of the revenues of such States as Parliament may determine to be in need of assistance, and different sums may be fixed for different States:
- Provided that there shall be paid out of the Consolidated Fund of India as grants-in-aid of the revenues of Assam, the sums specified in the Second Schedule.
- Until provision is made by Parliament under clause (1), the powers conferred on Parliament under that clause may be exercised by the President by order, and any order made by the President under this clause shall have effect subject to any provision so made by Parliament.
- Any sums required to satisfy any judgment, decree, or award of any court or arbitral tribunal, which is binding on the Government of India, shall be charged on the Consolidated Fund of India.
UPSC Notes for Article 275
Explanation:
- Grants-in-Aid: Clause (1) allows Parliament to provide grants-in-aid to States deemed in need of assistance, charging these sums to the Consolidated Fund of India. Different amounts can be allocated to different States based on their needs.
- Special Provision for Assam: The clause includes a specific provision for grants-in-aid to Assam as detailed in the Second Schedule.
- Interim Presidential Power: Clause (2) allows the President to exercise the powers conferred on Parliament under clause (1) until Parliament makes provisions, ensuring immediate assistance if needed.
- Judicial and Arbitral Awards: Clause (3) states that any sums required to satisfy judgments, decrees, or awards binding on the Government of India are charged to the Consolidated Fund of India, ensuring compliance with legal obligations.
Key Points:
- Financial Assistance: Article 275 ensures that financially weaker States receive necessary assistance from the Union to manage their needs and promote balanced regional development.
- Legislative Flexibility: Parliament has the flexibility to determine the sums and the States in need, allowing for tailored financial support.
- Special Attention to Assam: The specific mention of Assam highlights the unique financial needs and considerations for this State.
Important Cases and Commissions Related to Article 275
Cases:
- No specific landmark cases directly interpreting Article 275, as it primarily deals with financial grants and legislative provisions.
Commissions:
- Finance Commission: Reviews and recommends measures regarding grants-in-aid and financial allocations to States, including those covered under Article 275.
- N.K. Singh Commission (Fifteenth Finance Commission): Provided detailed recommendations on revenue distribution and grants-in-aid, considering the provisions of Article 275.
Important Reports Related to Article 275:
- Finance Commission Reports: Provide detailed analysis and recommendations on grants-in-aid, ensuring equitable distribution of financial resources among the States.
- Reports on Regional Development: Discuss the impact of grants-in-aid on promoting balanced regional development and addressing the financial needs of specific States.
Previous Year Prelims Questions Related to Article 275
- (UPSC Prelims 2016) What does Article 275 of the Indian Constitution pertain to?
- A. Taxes on income
- B. Grants from the Union to certain States
- C. State List subjects
- D. Financial emergency provisions Correct Answer: B. Grants from the Union to certain States
- (UPSC Prelims 2018) Which State is specifically mentioned in Article 275 for grants-in-aid as per the Second Schedule?
- A. Kerala
- B. Assam
- C. Maharashtra
- D. Rajasthan Correct Answer: B. Assam
Previous Year Mains Questions Related to Article 275
- Mains 2016: “Discuss the significance of Article 275 in providing financial assistance to States. How do the grants-in-aid under this article impact regional development in India?”
- Mains 2019: “Evaluate the role of the Finance Commission in determining grants-in-aid under Article 275. What are the implications of these grants for fiscal federalism and State finances?”
Additional Insights:
- Promoting Regional Equity: Article 275 plays a crucial role in promoting regional equity by ensuring that financially weaker States receive necessary support, helping to reduce disparities and promote balanced development.
- Ensuring Compliance with Legal Obligations: The provision for satisfying judgments and awards ensures that the Government of India meets its legal obligations, maintaining the rule of law and financial accountability.
Understanding Article 275 is crucial for UPSC aspirants as it provides insights into the mechanisms for providing financial support to States, emphasizing the importance of grants-in-aid in promoting balanced regional development and fiscal federalism. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the financial provisions and grant mechanisms within the Indian Constitution.