Part XII - Finance • Article

Article 275 Simplified: Grants from the Union to certain States

Article 275 mandates 'Statutory Grants-in-Aid' from the Center to states that Parliament determines are in financial need. It also specifies mandatory capital and recurring grants to fund development schemes for the welfare of Scheduled Tribes and to improve the administration of Scheduled Areas (such as those in Assam and other states), charged directly on the Consolidated Fund of India.

Official Text

(1) Such sums as Parliament may by law provide shall be charged on the Consolidated Fund of India in each year as grants-in-aid of the revenues of such States as Parliament may determine to be in need of assistance, and different sums may be fixed for different States: Provided that there shall be paid out of the Consolidated Fund of India as grants-in-aid of the revenues of a State such capital and recurring sums as may be necessary to enable that State to meet the costs of such schemes of development as may be undertaken by the State with the approval of the Government of India for the purpose of promoting the welfare of the Scheduled Tribes in that State or raising the level of administration of the Scheduled Areas therein to that of the administration of the rest of the areas of that State: Provided further that there shall be paid out of the Consolidated Fund of India as grants-in-aid of the revenues of the State of Assam sums, capital and recurring, equivalent to— (a) the average excess of expenditure over the revenues during the two years immediately preceding the commencement of this Constitution in respect of the administration of the tribal areas specified in [Part I] of the table appended to paragraph 20 of the Sixth Schedule; and (b) the costs of such schemes of development as may be undertaken by that State with the approval of the Government of India for the purpose of raising the level of administration of the said areas to that of the administration of the rest of the areas of that State. [(1A) On and from the formation of the autonomous State under article 244A,— (i) any sums payable under clause (a) of the second proviso to clause (1) shall, if the autonomous State comprises all the tribal areas referred to therein, be paid to the autonomous State, and, if the autonomous State comprises only some of those tribal areas, be apportioned between the State of Assam and the autonomous State as the President may, by order, specify; (ii) there shall be paid out of the Consolidated Fund of India as grants-in-aid of the revenues of the autonomous State sums, capital and recurring, equivalent to the costs of such schemes of development as may be undertaken by the autonomous State with the approval of the Government of India for the purpose of raising the level of administration of that State to that of the administration of the rest of the State of Assam.] (2) Until provision is made by Parliament under clause (1), the powers conferred on Parliament under that clause shall be exercisable by the President by order and any order made by the President under this clause shall have effect subject to any provision so made by Parliament: Provided that after a Finance Commission has been constituted no order shall be made under this clause by the President except after considering the recommendations of the Finance Commission.

Simple Meaning

Explain Like Ten

It is like a big brother helping a little brother who ran out of pocket money. The central government gives extra money to states that need help to run well and look after tribal areas.

Student Mode

Article 275 authorizes Parliament to grant financial aid from the Consolidated Fund of India to states determined to be in need of assistance. Crucially, the first proviso mandates grants for schemes that promote Scheduled Tribes' welfare or raise the level of administration in Scheduled Areas (particularly in Assam) to that of the rest of the state. These statutory grants are distinct from discretionary grants under Article 282.

Example

The central government provides a specialized grant under Article 275 to finance clean water and educational infrastructure projects in the tribal areas of Assam, raising the local standard of living.

Key Takeaway

The Center must provide financial grants to states in need, with constitutional guarantees for tribal welfare and Scheduled Areas.

FAQs

What is the difference between Article 275 grants and Article 282 grants?

Article 275 grants are statutory and recommended by the Finance Commission, charged directly on the Consolidated Fund of India. Article 282 grants are discretionary and used by the executive to fund central schemes.

Who recommends the allocation of grants-in-aid under Article 275?

The Finance Commission under Article 280(3)(b) recommends the principles governing these grants.

Quiz

Grants-in-aid under Article 275 are charged on which fund?

Answer: Consolidated Fund of India

Which state is explicitly mentioned in the second proviso of Article 275 for special tribal area development grants?

Answer: Assam