Actual Article
Article 290: Adjustment in respect of certain expenses and pensions
Where under the provisions of this Constitution the expenses of any court or Commission, or the pensions payable to or in respect of any person, are charged on the Consolidated Fund of India, and any part of such expenses or pensions is payable in respect of any period before the commencement of this Constitution out of the revenues of any State, then, notwithstanding anything in this Constitution, there shall be charged on and paid out of the Consolidated Fund of India to that State such contributions in respect of the expenses or pensions payable out of the revenues of that State as may be determined by the President in consultation with the Government of that State.
UPSC Notes for Article 290
Explanation:
- Expenses and Pensions: Article 290 addresses the adjustment of expenses and pensions that are charged on the Consolidated Fund of India but were payable from State revenues before the Constitution commenced.
- Central Compensation: The article mandates that such expenses or pensions shall be charged to the Consolidated Fund of India and paid to the States as contributions, determined by the President in consultation with the respective State Government.
Key Points:
- Financial Adjustment: Ensures a smooth financial transition for expenses and pensions that were previously the responsibility of State revenues but are now charged to the Consolidated Fund of India.
- Presidential Consultation: The President, in consultation with State Governments, determines the contributions, ensuring fairness and agreement in the financial adjustments.
- Constitutional Continuity: Maintains continuity and fairness in financial obligations as responsibilities shift from State to Union under the new constitutional framework.
Important Cases and Commissions Related to Article 290
Cases:
- No specific landmark cases directly interpreting Article 290, as it primarily deals with procedural financial adjustments.
Commissions:
- Finance Commission: Reviews and recommends measures regarding financial adjustments and transfers, ensuring compliance with Article 290.
- Pay Commission: Recommends pensions and salaries for government employees, which may involve adjustments covered under Article 290.
Important Reports Related to Article 290:
- Finance Commission Reports: Provide recommendations on financial adjustments, including those for pensions and expenses shifted from State to Union responsibility.
- Pay Commission Reports: Discuss pensions and salaries, including historical adjustments necessitated by constitutional provisions like Article 290.
Previous Year Prelims Questions Related to Article 290
- (UPSC Prelims 2016) According to Article 290 of the Indian Constitution, who determines the contributions payable to States for certain expenses and pensions?
- A. The Finance Minister
- B. The Prime Minister
- C. The President in consultation with the State Government
- D. The Comptroller and Auditor General of India Correct Answer: C. The President in consultation with the State Government
- (UPSC Prelims 2018) What is the primary purpose of Article 290 in the context of financial management?
- A. To levy new taxes on States
- B. To adjust expenses and pensions previously payable by States but now charged to the Consolidated Fund of India
- C. To establish a new pension scheme
- D. To regulate state borrowing Correct Answer: B. To adjust expenses and pensions previously payable by States but now charged to the Consolidated Fund of India
Previous Year Mains Questions Related to Article 290
- Mains 2016: “Discuss the significance of Article 290 in ensuring a smooth financial transition in the context of expenses and pensions. How does this article facilitate fairness in financial adjustments between the Union and the States?”
- Mains 2019: “Evaluate the role of the President in determining contributions payable to States under Article 290. What are the potential benefits and challenges associated with these financial adjustments?”
Additional Insights:
- Ensuring Financial Stability: Article 290 plays a crucial role in ensuring financial stability and fairness during the transition of responsibilities from State to Union.
- Consultative Process: The requirement for presidential consultation with State Governments ensures that financial adjustments are made transparently and equitably, promoting cooperative federalism.
Understanding Article 290 is crucial for UPSC aspirants as it provides insights into the mechanisms for financial adjustments of expenses and pensions between the Union and the States, emphasizing the importance of financial stability and cooperative federalism. 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.