Article 202 of the Costitution of India with Case law

Here is a detailed explanation of Article 202 of the Constitution of India along with key case laws:

๐Ÿ‡ฎ๐Ÿ‡ณ Article 202 โ€“ Annual Financial Statement (State Budget)

๐Ÿ”น Text of Article 202(1):

"The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part referred to as the 'annual financial statement'."

๐Ÿงพ Explanation:

Article 202 deals with the State Budgetโ€”the Annual Financial Statement that must be presented to the State Legislature.

It mirrors Article 112, which pertains to the Union Budget.

โœ… Key Provisions under Article 202:

ClauseProvision
202(1)Governor lays the Annual Financial Statement before State Legislature.
202(2)Statement shows estimated receipts and expenditure under:
โ€ƒ(a) Consolidated Fund of the State 
โ€ƒ(b) Contingency Fund 
โ€ƒ(c) Public Account 
202(3)Expenditure is classified into:
โ€ƒ- Charged expenditure (not votable by legislature) 
โ€ƒ- Other expenditure (votable by legislature) 

๐Ÿ”น Types of Funds Involved:

Consolidated Fund โ€“ All revenues received and loans raised by the government.

Contingency Fund โ€“ Emergency fund at the Governorโ€™s disposal.

Public Account โ€“ For money held by the government in trust (e.g., PF, small savings).

โš–๏ธ Important Case Laws Related to Article 202:

1. ๐Ÿ”ธ State of Kerala v. Gwalior Rayon Silk Manufacturing Co. Ltd. (1973)

Citation: AIR 1973 SC 2734
Issue: Legislative competence of the State regarding financial matters.
Held:

The State Legislature must follow constitutional provisions while passing budgetary laws under Article 202.

Annual financial statements and appropriation laws must conform to procedure.

2. ๐Ÿ”ธ Gulabsingh v. State of Gujarat (1974)

Gujarat HC
Facts: Challenge to an expenditure made without proper legislative authorization.
Held:

Expenditure from Consolidated Fund requires legislative sanction through the budget (A. 202 read with A. 204).

Unauthorized expenditure violates constitutional budgetary procedure.

3. ๐Ÿ”ธ R.K. Garg v. Union of India (1981)

Citation: AIR 1981 SC 2138
Though centered on the Union, the case emphasized that financial bills must comply with constitutional budgetary procedures, whether under Article 112 (Union) or 202 (State).

๐Ÿ“Œ Summary Table:

AspectDetails
Article202
Applies toState Legislatures
PurposeTo present the Annual Financial Statement (Budget)
Presented byGovernor
Divisions of ExpenditureCharged and Votable
Funds CoveredConsolidated Fund, Contingency Fund, Public Account

๐Ÿง  Conclusion:

Article 202 plays a central role in maintaining financial accountability and legislative oversight at the State level. It ensures that State governments cannot spend public money arbitrarily and must follow a democratic process through the State Legislature.

 

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