Article 281 Simplified: Recommendations of the Finance Commission

Official Text

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. Miscellaneous Financial Provisions

Simple Meaning

Article 281 enforces 'Parliamentary Transparency' for the Finance Commission. It requires the President to table the Commission's recommendations, along with an 'explanatory memorandum' detailing the actions taken (or why any suggestion was not implemented), before both the Lok Sabha and the Rajya Sabha to ensure public accountability.

Explain Like Ten

After the Finance Commission writes its recommendation report, the President must show it to all members of Parliament in both houses, along with an explanation of what the government will do about it.

Student Mode

Article 281 ensures accountability and transparency in fiscal devolution. It mandates the President to lay every recommendation made by the Finance Commission, along with an explanatory memorandum detailing the action taken or the reasons for rejecting any recommendation, before both Houses of Parliament.

Example

When the Finance Commission submits its report, the Union Cabinet details which tax devolution rules it is accepting, and lays the report and this action-taken memorandum before Parliament.

Key Takeaway

Every Finance Commission report and the government's action-taken report must be presented to both Houses of Parliament.

FAQs

What is the 'explanatory memorandum' in Article 281?

It is a document submitted by the Union Government detailing which recommendations of the Finance Commission have been accepted, how they will be implemented, and the justification for any rejections.

Can the Parliament reject the Finance Commission's recommendations?

Parliament itself does not reject them, but the executive (Cabinet) can choose not to implement them, though they must explain their reasoning to Parliament under Article 281.

Quiz

Under Article 281, who is responsible for causing the Finance Commission recommendations to be laid before Parliament?

Answer: The President

Along with the Finance Commission report, the government must lay an explanatory memorandum detailing what?

Answer: The action taken on the recommendations

Related Topics

• Article 280