Actual Article
Article 283: Custody, etc., of Consolidated Funds, Contingency Funds, and moneys credited to the public accounts
- The custody of the Consolidated Fund of India or the Consolidated Fund of a State, the Contingency Fund of India or the Contingency Fund of a State, and the moneys credited to the public account of India or the public account of a State, and the withdrawal of moneys therefrom, shall be regulated by law made by Parliament, and, subject to such law, by rules made by the President or by the Governor of the State, as the case may be.
- The custody of other moneys received by or on behalf of the Government of India or the Government of a State, their payment into the public account of India or the public account of the State, and the withdrawal of moneys from such account, and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament, and, subject to such law, by rules made by the President or by the Governor of the State, as the case may be.
UPSC Notes for Article 283
Explanation:
- Custody and Withdrawal: Article 283 specifies that the custody and withdrawal of moneys from the Consolidated Fund of India or a State, the Contingency Fund of India or a State, and the public accounts of India or a State shall be regulated by laws made by Parliament. In the absence of such laws, these matters are regulated by rules made by the President or the Governor of the State.
- Other Moneys: The article also covers the custody and management of other moneys received by the Union or State governments, ensuring that these are properly accounted for and managed according to the rules laid down by Parliament and, in its absence, by the President or the Governor.
Key Points:
- Financial Discipline: Article 283 ensures financial discipline and accountability in the management of public funds, specifying clear rules for their custody and withdrawal.
- Parliamentary Oversight: The regulation of these funds by laws made by Parliament ensures that there is legislative oversight and control over the management of public finances.
- Executive Rules: In the absence of parliamentary laws, the President or the Governor can make rules to ensure the proper management of these funds, providing flexibility and immediate governance.
Important Cases and Commissions Related to Article 283
Cases:
- No specific landmark cases directly interpreting Article 283, as it primarily deals with procedural aspects of financial management.
Commissions:
- Finance Commission: Reviews and recommends measures related to the management and distribution of funds mentioned in Article 283.
- Public Accounts Committee: Examines the accounts showing the appropriation of sums granted by Parliament and ensures compliance with the regulations governing the custody and withdrawal of public funds.
Important Reports Related to Article 283:
- Finance Commission Reports: Provide recommendations on the management and distribution of the Consolidated Fund, Contingency Fund, and public accounts.
- CAG Reports: The Comptroller and Auditor-General (CAG) audits and reports on the management of these funds, ensuring adherence to the laws and rules established under Article 283.
Previous Year Prelims Questions Related to Article 283
- (UPSC Prelims 2016) Who regulates the custody and withdrawal of moneys from the Consolidated Fund of India according to Article 283?
- A. The Prime Minister
- B. The Parliament
- C. The Supreme Court
- D. The Reserve Bank of India Correct Answer: B. The Parliament
- (UPSC Prelims 2018) What is the role of the President or the Governor in relation to the management of public funds under Article 283?
- A. They can make rules in the absence of parliamentary laws
- B. They can directly manage the funds
- C. They can audit the accounts
- D. They have no role Correct Answer: A. They can make rules in the absence of parliamentary laws
Previous Year Mains Questions Related to Article 283
- Mains 2016: “Discuss the significance of Article 283 in ensuring the proper management of public funds in India. How does this article contribute to financial discipline and accountability?”
- Mains 2019: “Evaluate the role of parliamentary oversight in the management of the Consolidated Fund and Contingency Fund as provided under Article 283. What are the challenges and advantages of this oversight?”
Additional Insights:
- Ensuring Proper Management: Article 283 is crucial for ensuring that public funds are managed properly, with clear rules for their custody and withdrawal, promoting transparency and accountability.
- Flexibility and Governance: By allowing the President or the Governor to make rules in the absence of parliamentary laws, the article ensures that there is always a framework for managing public funds, providing flexibility and immediate governance when needed.
Understanding Article 283 is crucial for UPSC aspirants as it provides insights into the mechanisms for managing public funds, emphasizing the importance of financial discipline, transparency, and accountability. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the financial provisions and their impact on governance within the Indian Constitution.