Article 281 of the Costitution of India with Case law

Article 282 of the Constitution of India

— Expenditure defrayable by the Union or a State out of its revenues

📜 Text of Article 282:

“The Union or a State may make any grants for any public purpose, notwithstanding that the purpose is not one with respect to which Parliament or the Legislature of the State, as the case may be, may make laws.”

🧾 Essence of Article 282:

FeatureDetails
Who can make grants?Union Government or State Governments
Purpose of grantsAny public purpose, even outside their legislative competence
Binding conditionIt must serve a public purpose (not private)
Type of PowerDiscretionary, not mandatory
UsageFor inter-governmental cooperation, emergencies, or assistance to schemes

📌 Scope and Significance:

Provides financial flexibility to the Union and States.

Helps in funding centrally sponsored schemes in areas normally reserved for the States.

Enables collaborative federalism, allowing Union aid to States or inter-state cooperation.

Encourages Union involvement in State List subjects without making laws, simply by funding programs.

🏛️ Examples of Use:

Centrally Sponsored Schemes like:

Mid-Day Meal Scheme

Pradhan Mantri Gram Sadak Yojana

National Health Mission

Though these are State List subjects (education, roads, health), the Union gives financial aid using Article 282.

⚖️ Important Case Laws Related to Article 282:

🧑‍⚖️ 1. Bharatiya Janata Party v. Union of India (1996)

Citation: AIR 1996 SC 1193

Issue: Whether grants made by Union for political purposes violate Article 282.

Held:

Grants must be for public purposes, not private or political.

Article 282 cannot be misused to benefit a political party or non-public entity.

🧑‍⚖️ 2. State of West Bengal v. Union of India (1963)

Citation: AIR 1963 SC 1241

Relevance: Although mainly on federal powers, the Court explained how Union may financially support States under Article 282 even in State matters.

Significance: Confirms that financial grants do not amount to legislative overreach.

🧑‍⚖️ 3. Sanjeev Coke Manufacturing Co. v. Bharat Coking Coal Ltd. (1983)

Citation: AIR 1983 SC 239

Held: Article 282 reflects that financial powers are broader than legislative powers.

Key Point: Even if the Union cannot legislate, it can fund initiatives outside its jurisdiction.

Key Takeaways:

TopicDetails
Article 282 PowerFinancial power – allows grants for any public purpose
Outside Jurisdiction?Yes, even outside legislative domain
Type of PowerDiscretionary, not enforceable right
BeneficiariesOther governments, NGOs, public institutions
LimitMust serve public purpose, not private or political gain

🔄 Comparison: Article 282 vs Article 275

FeatureArticle 282Article 275
Type of GrantDiscretionary grantStatutory grant
Purpose

🔹 Article 281 of the Constitution of India

Title: Recommendations of the Finance Commission

🔸 Text of Article 281

The President shall cause every recommendation made by the Finance Commission under the provisions of this Constitution, together with an explanatory memorandum as to the action taken thereon, to be laid before each House of Parliament.

🔸 Explanation of Article 281

This Article ensures transparency and accountability in how the Union Government handles Finance Commission recommendations.

📌 Key Points:

The Finance Commission (established under Article 280) recommends:

Distribution of taxes between Union and States.

Grants-in-aid to States.

Measures to improve the financial status of governments.

Article 281 requires:

The President of India to lay:

The Commission’s report, and

An explanatory memorandum (what actions were taken on those recommendations)

Before both Houses of Parliament – Lok Sabha and Rajya Sabha.

🔸 Purpose of Article 281

Brings Parliamentary oversight into the financial distribution process.

Keeps the executive answerable for accepting, rejecting, or modifying recommendations.

Helps in ensuring fiscal federalism and cooperative governance.

🔸 Case Laws Relevant to Article 281

🧑‍⚖️ Union of India v. State of Bihar, AIR 1970 SC 1446

Context: Dispute over tax distribution based on Finance Commission's recommendations.

Held: While the Finance Commission is advisory, the President is bound to lay its report before Parliament under Article 281.

Significance: Reinforced that Parliament has final say, not the Commission.

🧑‍⚖️ State of Karnataka v. Union of India, AIR 1978 SC 68

Issue: Whether recommendations of the Finance Commission are binding.

Held: The recommendations are not binding, but the process under Article 281 is mandatory — i.e., report and action taken must be placed before Parliament.

🧑‍⚖️ Gujarat v. Union of India, AIR 1982 SC 1224

Held: Parliament’s decisions regarding financial distribution may be influenced by the Finance Commission, but they are sovereign, and the report itself doesn’t have legislative force.

🔸 How Article 281 Works in Practice

StepDescription
1️⃣Finance Commission submits its report with recommendations
2️⃣Union Government prepares explanatory memorandum (accept/reject/modify)
3️⃣President places both report and memo before Parliament
4️⃣Parliament debates and acts on it (e.g., through budget, grants, or laws)

🔸 Example

15th Finance Commission (2021–26):
Recommended specific tax sharing formula, grants for local bodies, disaster relief funds, etc.
The President laid the report and explanatory memo before Parliament under Article 281.

🔸 Related Articles

ArticlePurpose
Article 280Constitution and role of the Finance Commission
Article 275Grants-in-aid to States
Article 281Presentation of Finance Commission report to Parliament

🔸 Conclusion

Article 281 strengthens:

Parliamentary oversight over inter-governmental financial recommendations.

Transparency in how Union Government acts on Finance Commission advice.

Accountability in the fiscal federal setup.

Would you like a chart comparing Articles 280, 281, and 275, or a brief Hindi summary for notes or teaching purposes?

Specific purposes (esp. for tribal and backward areas)
RequirementNo need for Finance Commission recommendationBased on Finance Commission report

 

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