What is Article 205 of Indian Constitution – Defination & Meaning

Article 205: Supplementary, additional or excess grants (1) The Governor shall— (a) if the amount authorised by any law made in accordance with the provisions
📅 Part VI – The States
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Article Number

205

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Part VI – The States

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Bare Acts Text

Article 205: Supplementary, additional or excess grants

  • (1) The Governor shall—
    • (a) if the amount authorised by any law made in accordance with the provisions of article 204 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a need has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that year, or
    • (b) if any money has been spent on any service during a financial year in excess of the amount granted for that service and for that year,
  • cause to be laid before the House or the Houses of the Legislature of the State another statement showing the estimated amount of that expenditure or cause to be presented to the Legislative Assembly of the State a demand for such excess, as the case may be.
  • (2) The provisions of articles 202, 203 and 204 shall have effect in relation to any such statement and expenditure or demand and also to any law to be made authorising the appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or the grant in respect of such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to a demand for a grant and the law to be made for the authorisation of appropriation of moneys out of the
    Consolidated Fund of the State to meet such expenditure or grant.
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Full Definition & Explanation

Article 205 of the Indian Constitution outlines the procedure for supplementary, additional, or excess grants needed by the state government. This article affects state governors and legislatures by establishing a process for addressing financial shortfalls or unexpected expenses during a financial year. When the state realizes that the budget allocated for a particular service is insufficient, or if new needs arise that weren’t planned for, the Governor must take action. This includes laying a statement before the legislature to seek approval for the additional expenditure. The article also addresses situations where spending exceeds the originally granted amount for a service. In such cases, the Governor must present a statement of the estimated excess amount to the legislature. This provision ensures that any extra financial demands are transparent and subject to legislative scrutiny. It reflects the principle of accountability by requiring the executive to justify any additional spending to the legislature, thus promoting responsible governance. Also, Article 205 integrates with other articles like 202, 203, and 204, which detail the overall financial management framework of the state, including how funds are appropriated and managed. This interconnectedness helps ensure that all financial matters are handled systematically, providing a clear pathway for managing state finances effectively. The practical impact of this article is seen when urgent funding is required for public services, ensuring that the state can address needs without delay while maintaining legislative oversight.

Historical Context

This article affects state governors and legislatures by establishing a process for addressing financial shortfalls or unexpected expenses during a financial year. When the state realizes that the budget allocated for a particular service is insufficient, or if new needs arise that weren’t planned for, the Governor must take action. This includes laying a statement before the legislature to seek approval for the additional expenditure. The article also addresses situations where spending exceeds the originally granted amount for a service.

Key Features

– It allows governors to request additional funds when necessary.
– The article mandates the laying of a statement before the legislature.
– It addresses both supplementary needs and excess spending situations.
– Legislative scrutiny is required for all proposed additional expenditures.
– It integrates with other financial articles for systematic fund management.

Importance & Impact

– Ensures state financial management remains transparent and accountable
– Allows for flexibility in budget management during unexpected needs
– Promotes responsible governance by requiring legislative approval for spending
– Helps maintain financial discipline within state administrations
– Facilitates timely funding for urgent public service requirements

Sample UPSC Question

Which of the following statements regarding Article 205 of the Indian Constitution is correct? A) It provides for regular state budgets only. B) It allows governors to request additional grants if needed. C) It does not require any legislative approval for excess spending. D) It was amended several times since its enactment. Select the correct answer.? Analyze these options carefully in light of the constitutional distribution of legislative and executive powers.

Answer

The correct answer is B. Article 205 allows governors to request additional grants when necessary, ensuring that state needs are met while maintaining legislative oversight. Article 205 of the Indian Constitution outlines the procedure for supplementary, additional, or excess grants needed by the state government.

Key Takeaways

✓ Article 205 allows for supplementary funding requests
✓ Governors must present excess spending to the legislature.
✓ Legislative scrutiny promotes financial accountability
✓ It ensures timely funding for unexpected state needs.
✓ The article integrates with other financial provisions

FAQs

Article 205 of the Indian Constitution outlines the procedure for supplementary, additional, or excess grants needed by the state government. This article affects state governors and legislatures by establishing a process for addressing financial shortfalls or unexpected expenses during a financial year. When the state realizes that the budget allocated for a particular service is insufficient, or if new needs arise that weren’t planned for, the Governor must take action.

In such cases, the Governor must present a statement of the estimated excess amount to the legislature. This provision ensures that any extra financial demands are transparent and subject to legislative scrutiny. It reflects the principle of accountability by requiring the executive to justify any additional spending to the legislature, thus promoting responsible governance.

Also, Article 205 integrates with other articles like 202, 203, and 204, which detail the overall financial management framework of the state, including how funds are appropriated and managed. This interconnectedness helps ensure that all financial matters are handled systematically, providing a clear pathway for managing state finances effectively. The practical impact of this article is seen when urgent funding is required for public services, ensuring that the state can address needs without delay while maintaining legislative oversight.

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Pramod is the Founder and Editor-in-Chief of StudyHub. He holds a Master's degree and is currently pursuing a Ph.D. in Geology, alongside more than 7+ years spent building and verifying competitive exam content for Indian aspirants. He leads StudyHub's editorial process across Indian Polity, the Constitution, Indian Economy, History, Geography, Science, and the platform's other subject areas — checking every article against primary sources (bare act text and Gazette notifications for constitutional topics, government and Economic Survey data for economy content, standard reference material elsewhere) and flagging it for re-verification whenever a relevant amendment, policy, or data update makes an earlier version outdated.
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