Part XII - Finance • Article

Article 282 Simplified: Expenditure defrayable by the Union or a State out of its revenues

Article 282 provides 'Discretionary Spending Power.' It allows both the Union and State Governments to spend public money and make financial grants for any 'public purpose,' even if the subject falls completely outside their regular legislative list. This allows the Center to fund major national welfare programs in areas normally reserved for state lawmaking.

Official Text

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.

Simple Meaning

Explain Like Ten

The central government and state governments can spend their money on anything that helps the public, even if that specific subject (like schools or farming) isn't in their official list of rules.

Student Mode

Article 282 provides broad, discretionary spending powers to both the Union and the States. It permits them to make grants for any 'public purpose,' even if that purpose does not fall within their respective legislative lists under the Seventh Schedule. The Union Government extensively uses this article to bypass List II restrictions and directly fund Centrally Sponsored Schemes (like MGNREGA or NHM).

Example

The Central Government uses Article 282 to fund Centrally Sponsored Schemes like the Pradhan Mantri Awas Yojana (rural housing), even though housing and local development fall under the State List.

Key Takeaway

The Union and States can make discretionary grants for any public purpose, regardless of legislative jurisdiction boundaries.

FAQs

Why is Article 282 contentious in Center-State relations?

Because the Center uses it to fund Centrally Sponsored Schemes in areas under the State List (like health or agriculture), attaching strings and conditions, which states argue encroaches on their administrative autonomy.

Is there a limit to what constitutes a 'public purpose' under Article 282?

The term 'public purpose' is interpreted very broadly by the courts. As long as the expenditure benefits the general public, it is constitutionally valid.

Quiz

Article 282 allows the Union or a State to make grants for what kind of purpose?

Answer: Any public purpose

Which of the following is primarily funded using the discretionary powers of Article 282?

Answer: Centrally Sponsored Schemes