What is Article 283 of Indian Constitution – Defination & Meaning

Article 283: Custody, etc., of Consolidated Funds, Contingency Funds and moneys credited to the public accounts. (1) The custody of the Consolidated Fund of
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Article Number

283

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Part XII – Finance, Property, Contracts and Suits

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Bare Acts Text

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

  • (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.
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Full Definition & Explanation

Article 283 of the Indian Constitution outlines how public funds are managed in India. It specifies that the custody of the Consolidated Fund of India and the Contingency Fund of India falls under the regulation of laws made by Parliament. This means that any rules regarding how money is handled must be established by the legislative body. If the Parliament has not made specific laws for this purpose, the President can create rules to govern these funds in the interim. This setup ensures that there is a clear structure for managing government finances, which is key for maintaining accountability and transparency in public expenditure. The article also applies similarly to state governments. It states that the custody of the Consolidated Fund and Contingency Fund of each State is regulated by laws made by the respective State Legislature. This means that each state has the authority to create its own rules regarding public funds, which are then overseen by the Governor of the State. Having this provision enables states to manage their finances according to local needs while adhering to the constitutional framework. It also allows for a degree of flexibility in handling money matters, which can vary from one state to another based on their unique circumstances. In real-world terms, Article 283 plays a key role in how government budgets are prepared, approved, and executed. For example, if a state faces a natural disaster, it can quickly access the Contingency Fund for relief measures, ensuring timely aid to affected individuals. The article also emphasizes the importance of legislative oversight in financial matters, reducing the chances of misuse of public funds. Overall, it establishes a necessary framework for accountable financial governance in both the central and state governments.

Historical Context

It specifies that the custody of the Consolidated Fund of India and the Contingency Fund of India falls under the regulation of laws made by Parliament. This means that any rules regarding how money is handled must be established by the legislative body. If the Parliament has not made specific laws for this purpose, the President can create rules to govern these funds in the interim. This setup ensures that there is a clear structure for managing government finances, which is key for maintaining accountability and transparency in public expenditure.

Key Features

– The article regulates the custody of public funds in India.
– Parliament makes laws governing the Consolidated Fund of India.
– State Legislatures manage the funds at the state level.
– Rules made by the President can govern funds temporarily.
– Governor oversees fund management in individual states

Importance & Impact

– It ensures transparency in the management of public funds
– Parliamentary laws provide a framework for financial governance
– State autonomy allows for tailored financial management
– The article facilitates quick access to emergency funds
– Legislative oversight helps prevent misuse of public money

Sample UPSC Question

Which of the following statements about Article 283 of the Indian Constitution is true? A) It applies only to the Central Government. B) It allows temporary rules by the President. C) It does not mention state funds. D) It was amended in 2001. Choose the correct option.? Analyze these options carefully in light of the constitutional distribution of legislative and executive powers.

Answer

The correct answer is B. Article 283 permits the President of India to create temporary rules for managing public funds until Parliament makes specific laws. Article 283 of the Indian Constitution outlines how public funds are managed in India. It specifies that the custody of the Consolidated Fund of India and the Contingency Fund of India falls under the regulation of laws made by Parliament.

Key Takeaways

✓ Article 283 governs the management of public funds.
✓ It allows for temporary rules by the President.
✓ State Legislatures manage their own financial regulations
✓ Quick access to funds is provided in emergencies.
✓ It ensures accountability in public finance management

FAQs

Article 283 of the Indian Constitution outlines how public funds are managed in India. It specifies that the custody of the Consolidated Fund of India and the Contingency Fund of India falls under the regulation of laws made by Parliament. This means that any rules regarding how money is handled must be established by the legislative body.

This means that each state has the authority to create its own rules regarding public funds, which are then overseen by the Governor of the State. Having this provision enables states to manage their finances according to local needs while adhering to the constitutional framework. It also allows for a degree of flexibility in handling money matters, which can vary from one state to another based on their unique circumstances.

For example, if a state faces a natural disaster, it can quickly access the Contingency Fund for relief measures, ensuring timely aid to affected individuals. The article also emphasizes the importance of legislative oversight in financial matters, reducing the chances of misuse of public funds. Overall, it establishes a necessary framework for accountable financial governance in both the central and state governments.

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