Actual Article
Article 278: Agreement with States in Part B of the First Schedule with regard to certain financial matters
[Article 278 was omitted by the Constitution (Seventh Amendment) Act, 1956.]
Explanation:
- Omission of Article 278: Article 278 was omitted by the Constitution (Seventh Amendment) Act, 1956. Before its omission, it dealt with agreements between the Union and the States in Part B of the First Schedule regarding certain financial matters.
- Historical Context: The omission of Article 278 was part of broader constitutional changes, including the reorganization of states and the restructuring of financial relations between the Union and the States.
Key Points:
- Reorganization of States: The Seventh Amendment Act, 1956, played a crucial role in reorganizing states and redefining financial relations, leading to the omission of Article 278.
- Simplification of Financial Relations: The omission aimed to simplify and streamline financial relations between the Union and the States, removing the need for special agreements that were initially necessary for Part B states.
Important Cases and Commissions Related to Article 278
Cases:
- No specific landmark cases directly interpreting Article 278 after its omission.
Commissions:
- States Reorganization Commission (1953-1955): Recommended the reorganization of states, leading to significant constitutional amendments, including the omission of Article 278.
- Finance Commission: Continues to play a crucial role in recommending the distribution of financial resources between the Union and the States.
Important Reports Related to Article 278:
- States Reorganization Commission Report: Provided detailed recommendations on the reorganization of states and the restructuring of financial relations, influencing the omission of Article 278.
- Finance Commission Reports: Discuss the financial arrangements and distribution of resources between the Union and the States, reflecting the changes brought about by the Seventh Amendment.
Previous Year Prelims Questions Related to Article 278
- (UPSC Prelims 2016) Which constitutional amendment led to the omission of Article 278?
- A. Constitution (First Amendment) Act, 1951
- B. Constitution (Seventh Amendment) Act, 1956
- C. Constitution (Forty-Second Amendment) Act, 1976
- D. Constitution (Eighty-Eighth Amendment) Act, 2003 Correct Answer: B. Constitution (Seventh Amendment) Act, 1956
- (UPSC Prelims 2018) What was the primary focus of the Constitution (Seventh Amendment) Act, 1956?
- A. Introduction of GST
- B. Reorganization of states and financial relations
- C. Reservation in educational institutions
- D. Panchayati Raj reforms Correct Answer: B. Reorganization of states and financial relations
Previous Year Mains Questions Related to Article 278
- Mains 2016: “Discuss the significance of the Constitution (Seventh Amendment) Act, 1956, in the reorganization of states and its impact on financial relations between the Union and the States.”
- Mains 2019: “Evaluate the role of constitutional amendments in adapting the financial system of India to contemporary needs. How did the omission of Article 278 reflect broader changes in financial relations?”
Additional Insights:
- Evolving Financial System: The omission of Article 278 highlights the dynamic nature of the Indian financial system and the need for continuous reforms to address changing economic conditions.
- Impact on Fiscal Federalism: The changes brought about by the Seventh Amendment Act, 1956, and the omission of Article 278 were aimed at promoting a more streamlined and equitable system of fiscal federalism.
Understanding the omission of Article 278 and its implications is crucial for UPSC aspirants as it provides insights into the evolution of the Indian financial system and the impact of constitutional amendments on fiscal federalism. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the financial provisions and reforms within the Indian Constitution.