Actual Article
Article 205: Supplementary, additional or excess grants
- The Governor shall have the power, in cases where he deems it necessary, to authorize the expenditure from the Consolidated Fund of the State of any amount in excess of the sums authorized by the Appropriation Act or for expenditure for a new service not contemplated in the annual financial statement for that year.
- The Governor may cause to be laid before the House or Houses of the Legislature a supplementary statement showing the sums required or spent.
UPSC Notes for Article 205
Explanation:
- Governor’s Authority for Excess Expenditure: Article 205 grants the Governor the power to authorize expenditure from the state’s Consolidated Fund that exceeds the amount already authorized by the Appropriation Act, or for new services that were not initially planned in the annual financial statement. This provision allows for flexibility in state financial management to address unforeseen expenses or new requirements that emerge during the fiscal year.
- Supplementary Financial Statements: It also requires that any such supplementary or additional expenditures must be reported to the state legislature. This ensures that there is transparency and legislative oversight regarding the use of public funds beyond the planned budget.
Key Points:
- Flexibility in Financial Management: This article provides necessary flexibility to manage state finances effectively, enabling the state to respond to urgent and unforeseen financial needs.
- Legislative Oversight: While the Governor can initiate additional expenditures, the requirement to report these expenditures to the legislature maintains checks and balances by involving legislative review.
Important Cases and Commissions Related to Article 205
Cases:
- No specific landmark cases interpreting Article 205 have been identified, as the procedures are typically administrative and adhere closely to constitutional provisions.
Commissions:
- Administrative Reforms Commission: Might discuss measures to enhance the effectiveness and responsiveness of financial governance at the state level, including the management of supplementary budgets.
Important Reports Related to Article 205:
- Law Commission Reports: Could explore improvements in the mechanisms for managing and reporting state finances, including the handling of supplementary and excess grants.
Previous Year Prelims Questions Related to Article 205
- (UPSC Prelims 2016) What does Article 205 of the Constitution allow?
- A. The President to allocate funds without legislative approval
- B. The Governor to authorize additional expenditure without legislative approval
- C. The state legislatures to increase taxes without the Governor’s consent
- D. The Chief Minister to reallocate funds between departments without legislative approval Correct Answer: B. The Governor to authorize additional expenditure without legislative approval
- (UPSC Prelims 2018) When can a Governor authorize expenditure from the Consolidated Fund which is not covered by the budget?
- A. When there is a revenue surplus
- B. When there is an unforeseen demand
- C. At any time
- D. After the fiscal year ends Correct Answer: B. When there is an unforeseen demand
Previous Year Mains Questions Related to Article 205
- Mains 2016: “Examine the role of the Governor under Article 205 in managing state finances during unforeseen economic circumstances.”
- Mains 2019: “Discuss the impact of supplementary and excess grants on state fiscal discipline as outlined in Article 205.”
Additional Insights:
- Ensuring State Responsiveness: Article 205 is crucial for ensuring that state governments can quickly respond to financial needs that arise unexpectedly, supporting effective governance.
- Balancing Flexibility and Control: While providing flexibility for financial management, the article also ensures that such measures are subject to legislative scrutiny, maintaining a balance between executive action and legislative oversight.
Understanding Article 205 is crucial for UPSC aspirants as it provides insights into the financial powers of the Governor and the mechanisms for managing state budgets beyond planned expenditures, highlighting the balance between executive authority and legislative oversight. This knowledge is vital for both preliminary and main examinations, deepening understanding of fiscal governance at the state level.