Part XII - Finance • Article

Article 283 Simplified: Custody, etc., of Consolidated Funds, Contingency Funds and moneys credited to the public accounts

Article 283 regulates the 'Custody and Flow of Public Money.' It mandates that the custody of, payments into, and withdrawals from Consolidated Funds, Contingency Funds, and Public Accounts (for both Union and States) must be governed strictly by laws passed by Parliament or State Legislatures. Until these laws are made, they are regulated by rules framed by the President or state Governors.

Official Text

(1) The custody of the Consolidated Fund of India and the Contingency Fund of India, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of India, their payment into the public account of India and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament, and, until provision in that behalf is so made, shall be regulated by rules made by the President. (2) The custody of the Consolidated Fund of a State and the Contingency Fund of a State, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of the State, their payment into the public account of the State and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by the Legislature of the State, and, until provision in that behalf is so made, shall be regulated by rules made by the Governor *** of the State.

Simple Meaning

Explain Like Ten

All the government's piggy banks (like Consolidated and Contingency funds) must be locked and managed using strict rules decided by Parliament or state assemblies to prevent anyone from taking money out illegally.

Student Mode

Article 283 ensures strict legislative control over public monies. It mandates that the custody, payment-in, and withdrawal rules of the Consolidated Fund, Contingency Fund, and Public Account (both at the Union and State levels) must be regulated by laws passed by the respective legislature. Until such laws are enacted, the President (for the Union) or the Governor (for States) may make rules for the same.

Example

A state treasury department follows the State Treasury Code and custody rules enacted by the State Assembly under Article 283 to securely handle, store, and disburse public revenues and deposits.

Key Takeaway

The management, custody, and transactions of all government and public funds must be strictly regulated by legislative acts or executive rules.

FAQs

What are the three main funds governed under Article 283?

The Consolidated Fund (all tax revenues), the Contingency Fund (emergency reserves), and the Public Account (debt deposits, provident funds, and other public moneys held in trust).

Who makes the interim rules for state funds before the State Legislature acts?

The Governor of the respective State.

Quiz

Under Article 283(1), who regulates the custody and withdrawal of the Consolidated Fund of India until Parliament passes a law?

Answer: The President

At the state level, custody and withdrawal rules of public funds under Article 283(2) are ultimately legislated by:

Answer: The State Legislature