What is Article 273 of Indian Constitution – Defination & Meaning

Article 273: Grants in lieu of export duty on jute and jute products (1) There shall be charged on the Consolidated Fund of India in each year as
📅 Part XII – Finance, Property, Contracts and Suits
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Article Number

273

part

Part XII – Finance, Property, Contracts and Suits

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Active

Bare Acts Text

Article 273: Grants in lieu of export duty on jute and jute products

  • (1) There shall be charged on the Consolidated Fund of India in each year as grants-in-aid of the revenues of the States of Assam, Bihar, Orissa and West Bengal, in lieu of assignment of any share of the net proceeds in each year of export duty on jute and jute products to those States, such sums as may be prescribed.
  • (2) The sums so prescribed shall continue to be charged on the Consolidated Fund of India so long as any export duty on jute or jute products continues to be levied by the Government of India or until the expiration of ten years from the commencement of this Constitution whichever is earlier.
  • (3) In this article, the expression “prescribed” has the same meaning as in article 270.
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Full Definition & Explanation

Article 273 of the Indian Constitution deals with grants given by the central government to specific states. These states include Assam, Bihar, Orissa, and West Bengal, which are known for their jute production. The article mandates that there will be a financial grant to these states as compensation for not receiving a share of the export duty from jute and jute products. This ensures that the states do not suffer financially from the export duty imposed by the central government. The amount granted is charged on the Consolidated Fund of India, which is a pool of money that the government uses for its operations. The grants will continue as long as the export duty on jute is in place or until ten years after the Constitution came into effect, whichever comes first. This provision helps maintain the economic stability of the jute-producing states, making sure they receive necessary funds to support their economies. The term “prescribed” in the article refers to the specifications laid out in Article 270, which discusses the distribution of taxes between the Union and the states. This provision illustrates the relationship between the central and state governments, emphasizing the importance of cooperation in fiscal matters. The real-world impact of this article can be seen in how it supports the livelihoods of farmers and workers in the jute industry, ensuring that their interests are protected at a national level.

Historical Context

Article 273 was included in the Constitution when it was adopted in 1950. During the Constituent Assembly debates, members recognized the economic significance of jute production for states like Assam, Bihar, Orissa, and West Bengal. They aimed to ensure these states received financial support to balance the burden of export duties. This article has not undergone major amendments since its inception, but it reflects the ongoing fiscal relations between the central and state governments. Notable cases, such as the State of West Bengal vs. Union of India, illustrate disputes surrounding fiscal responsibilities and state grants.

Key Features

– Article 273 mandates grants for jute-producing states from the central government.
– The states affected are Assam, Bihar, Orissa, and West Bengal.
– Grants are charged on the Consolidated Fund of India every year.
– The amount continues until the export duty on jute is lifted.
– The term ‘prescribed’ aligns with Article 270‘s tax distribution methods.

Importance & Impact

– Provides ongoing financial support to key jute-producing states and their economies.
– Helps protect the economy of states reliant on jute exports.
– Aims to mitigate the impact of export duties on local industries.
– Fosters cooperation between central and state governments in managing fiscal matters.
– Supports the livelihoods of many farmers and workers in the jute sector.

Sample UPSC Question

Consider the following statements regarding Article 273 of the Indian Constitution: 1. It provides grants to jute-producing states as compensation for export duties. 2. The grants are charged on the Consolidated Fund of India. 3. Grants last until the export duty on jute is lifted or for ten years. Which of the statements is/are correct? A) 1 and 2 only B) 2 and 3 only C) 1, 2, and 3 D) 1 only. Analyze the implications of these grants on state economies.

Answer

The correct answer is C) 1, 2, and 3. Article 273 provides grants to specific jute-producing states and charges these grants to the Consolidated Fund of India. The grants continue until the export duty on jute is lifted or for ten years, ensuring financial support for these states. Other options are incorrect because they omit necessary aspects of the article’s provisions.

Key Takeaways

✓ Article 273 provides financial grants to jute-producing states.
✓ The grants help maintain economic stability in these states.
✓ They are charged on the Consolidated Fund of India yearly.
✓ Grants continue until the export duty is lifted.
✓ Article 273 fosters cooperation between the central and state governments.

FAQs

Article 273 of the Indian Constitution deals with grants given by the central government to specific states. These states include Assam, Bihar, Orissa, and West Bengal, which are known for their jute production. The article mandates that there will be a financial grant to these states as compensation for not receiving a share of the export duty from jute and jute products.

The grants will continue as long as the export duty on jute is in place or until ten years after the Constitution came into effect, whichever comes first. This provision helps maintain the economic stability of the jute-producing states, making sure they receive necessary funds to support their economies. The term “prescribed” in the article refers to the specifications laid out in Article 270, which discusses the distribution of taxes between the Union and the states.

The term “prescribed” in the article refers to the specifications laid out in Article 270, which discusses the distribution of taxes between the Union and the states. This provision illustrates the relationship between the central and state governments, emphasizing the importance of cooperation in fiscal matters. The real-world impact of this article can be seen in how it supports the livelihoods of farmers and workers in the jute industry, ensuring that their interests are protected at a national level.

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Editor-in-Chief Pramod

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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