Actual Article
Article 281: Recommendations of the Finance Commission
The recommendations made by the Finance Commission shall be laid before each House of Parliament together with an explanatory memorandum as to the action taken thereon by the Government.
UPSC Notes for Article 281
Explanation:
- Presentation to Parliament: Article 281 mandates that the recommendations of the Finance Commission be presented before both Houses of Parliament. This ensures transparency and accountability in the process of financial allocation.
- Explanatory Memorandum: Along with the recommendations, the government must provide an explanatory memorandum detailing the actions taken based on these recommendations. This memorandum explains how the recommendations have been implemented or reasons for any deviations.
Key Points:
- Transparency: The article promotes transparency in financial matters by requiring the government to publicly present and explain the Finance Commission’s recommendations.
- Accountability: By mandating an explanatory memorandum, the article holds the government accountable for implementing the recommendations of the Finance Commission.
- Parliamentary Oversight: Ensures that Parliament has oversight over the financial recommendations and actions taken, maintaining a system of checks and balances.
Important Cases and Commissions Related to Article 281
Cases:
- No specific landmark cases directly interpreting Article 281, as it deals primarily with the procedural aspect of presenting and explaining the Finance Commission’s recommendations.
Commissions:
- Finance Commissions (First to Fifteenth): Each Finance Commission has made significant contributions to fiscal federalism and resource distribution in India. Their recommendations have been presented to Parliament as per Article 281.
- Public Accounts Committee: Reviews the explanatory memorandum and actions taken on the recommendations, ensuring proper implementation and accountability.
Important Reports Related to Article 281:
- Finance Commission Reports: Each report provides recommendations on the distribution of tax revenues, grants-in-aid, and measures to support local bodies. These reports are laid before Parliament as mandated by Article 281.
- Reports by Public Accounts Committee: Analyzes the explanatory memorandum and actions taken by the government on the Finance Commission’s recommendations.
Previous Year Prelims Questions Related to Article 281
- (UPSC Prelims 2016) What does Article 281 of the Indian Constitution mandate regarding the recommendations of the Finance Commission?
- A. They must be approved by the President
- B. They must be laid before each House of Parliament
- C. They must be reviewed by the Supreme Court
- D. They must be implemented without modification Correct Answer: B. They must be laid before each House of Parliament
- (UPSC Prelims 2018) What must accompany the recommendations of the Finance Commission when they are laid before Parliament as per Article 281?
- A. A financial audit report
- B. An explanatory memorandum
- C. A presidential directive
- D. A parliamentary approval note Correct Answer: B. An explanatory memorandum
Previous Year Mains Questions Related to Article 281
- Mains 2016: “Discuss the significance of Article 281 in ensuring transparency and accountability in the financial recommendations made by the Finance Commission. How does this article enhance parliamentary oversight?”
- Mains 2019: “Evaluate the role of Article 281 in the context of fiscal federalism in India. How does the requirement of presenting the Finance Commission’s recommendations before Parliament impact the implementation of these recommendations?”
Additional Insights:
- Enhancing Parliamentary Oversight: Article 281 ensures that Parliament is fully informed about the recommendations of the Finance Commission and the actions taken on them, enhancing oversight and scrutiny.
- Promoting Good Governance: By mandating transparency and accountability, the article promotes good governance and ensures that financial resources are allocated efficiently and equitably.
Understanding Article 281 is crucial for UPSC aspirants as it provides insights into the mechanisms for ensuring transparency and accountability in the financial recommendations of the Finance Commission, emphasizing the importance of parliamentary oversight in fiscal matters. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the procedural aspects and checks and balances within the Indian Constitution.