Actual Article
Article 388: Provisions as to financial assistance to certain States
The President may, by order, direct that any sums which, immediately before the commencement of this Constitution, were standing to the credit of the Government of India in the Federal Railway Fund or any other fund established or maintained by or under the Government of India Act, 1935, shall, after such commencement, be transferred to the credit of such State or States as may be specified in the order.
UPSC Notes for Article 388
Explanation:
- Financial Assistance: Article 388 allows the President to direct the transfer of funds that were credited to the Government of India before the commencement of the Constitution to specified States.
- Specified Funds: This includes sums standing to the credit of the Federal Railway Fund or any other fund established under the Government of India Act, 1935.
- Presidential Authority: Empowers the President to ensure that these funds are appropriately allocated to the States as required.
Key Points:
- Support for States: Provides a mechanism for financial assistance to States, ensuring they receive necessary funds during the transition period.
- Presidential Discretion: Grants the President discretion to allocate funds to States based on specific needs or criteria.
- Continuity of Financial Administration: Ensures continuity in the financial administration and support for States as the new constitutional framework is established.
Important Cases and Commissions Related to Article 388
Cases:
- No landmark Supreme Court cases specifically interpreting Article 388, as it primarily deals with the transitional financial provisions.
Commissions:
- Various Finance Commissions: Have reviewed the allocation and transfer of funds during the transition to the new constitutional framework.
Important Reports Related to Article 388:
- Reports by the Finance Ministry and Finance Commission: Discuss the historical context and implications of transferring funds to States during the constitutional transition.
Previous Year Prelims Questions Related to Article 388
- What does Article 388 of the Indian Constitution provide for?
A. Establishment of new financial funds
B. Transfer of funds from the Government of India to specified States
C. Powers of the President during an emergency
D. Special provisions for the financial administration of States Correct Answer: B. Transfer of funds from the Government of India to specified States - Under Article 388, who has the authority to direct the transfer of funds to the credit of specified States?
A. The Prime Minister
B. The Chief Justice of India
C. The President
D. The Parliament Correct Answer: C. The President - According to Article 388, which funds can be transferred to the States?
A. Only new funds established after the commencement of the Constitution
B. Funds standing to the credit of the Government of India in the Federal Railway Fund or any other fund established under the Government of India Act, 1935
C. Only tax revenues collected after the commencement of the Constitution
D. Funds allocated by the State Finance Commissions Correct Answer: B. Funds standing to the credit of the Government of India in the Federal Railway Fund or any other fund established under the Government of India Act, 1935
Previous Year Mains Questions Related to Article 388
- Discuss the significance of Article 388 in ensuring financial support to States during the transition to the new constitutional framework. How does this provision contribute to financial stability in India?
- Evaluate the role of the President under Article 388 in transferring funds to specified States. How does this provision ensure equitable financial assistance during the constitutional transition?
- Analyze the impact of Article 388 on the financial administration of India. How did this transitional provision facilitate the continuity and support of financial resources to States during the establishment of the new constitutional order?
Additional Insights:
- Financial Stability: Article 388 plays a crucial role in maintaining financial stability during the transition to the new constitutional framework by ensuring that States receive necessary financial support.
- Presidential Authority: Highlights the central role of the President in managing the financial transition period, ensuring that funds are appropriately allocated to meet the needs of States.
- Transitional Provisions: Reflects the importance of having transitional provisions to manage the shift from the pre-constitutional financial order to the new constitutional framework, ensuring continuity and consistency in financial administration.
Understanding Article 388 is crucial for UPSC aspirants as it provides insights into the constitutional provisions for maintaining financial stability and continuity during the transition to the new constitutional framework. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the mechanisms ensuring the effective transfer and allocation of financial resources within the Indian Constitution.