Article 205: Supplementary, Additional or Excess Grants

--- Original Article ---

(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.

Explanations

Article 205 provides for financial flexibility through supplementary, additional, or excess grants, allowing the state to address unexpected financial needs. This ensures that unanticipated expenditures can be managed responsibly with legislative oversight.

Clause-by-Clause Explanation

Clause (1) – Role of the Governor in Supplementary and Excess Grants

Sub-clause (a): Insufficiency of Funds or New Services

When the funds authorized under Article 204 fall short or if there is a need for expenditure on new services, the Governor presents a supplementary statement before the Legislature.

Sub-clause (b): Expenditure Beyond Granted Funds

If expenditures exceed the amount initially granted, the Governor presents a demand for excess funds to the Legislature for approval.

Clause (2) – Application of Articles 202, 203, and 204

This clause extends the procedural requirements of Articles 202-204 to supplementary and excess grants, ensuring consistent legislative scrutiny.

Real-Life Examples

  • During the COVID-19 pandemic, states like Maharashtra and Tamil Nadu required supplementary grants to fund additional healthcare and relief measures.
  • In 2019, Kerala sought excess grants for flood relief after the initial funds proved insufficient due to the severity of the disaster.

Historical Significance

The concept of supplementary grants was influenced by British budgetary practices, which allowed financial flexibility within Parliament. Article 205 formalizes this process, emphasizing the need for responsive governance in the face of unexpected fiscal challenges.

Legislative History

Article 205 of the Indian Constitution, originally presented as Article 180 in the Draft Constitution, was debated on June 10, 1949, and was officially adopted into the Constitution.

Dr. B. R. Ambedkar proposed an amendment to replace the original draft of Article 180 with a revised version, clarifying the Governor's responsibility in securing additional or excess grants as needed. This amendment, accepted by the Assembly, provided a structured process for unforeseen financial adjustments, emphasizing fiscal discipline and legislative oversight.

Debates and Deliberations

During the Constituent Assembly debates, Dr. B. R. Ambedkar highlighted the need for financial flexibility within state budgets. By allowing supplementary and excess grants, Article 205 was designed to prevent financial disruptions in essential services. Dr. Ambedkar’s proposal was widely supported as a practical approach to budget management, especially for large states with diverse needs and the possibility of unplanned expenditures.

References

  • The Constitution of India, Article 202-206, detailing financial procedures.
  • Constituent Assembly Debates, 1949, focused discussions on the powers of the Governor in financial matters.
  • “Budgetary Practices in Commonwealth Nations,” Historical Overview, explaining the influence of British legislative practices on financial administration.
  • “State Financial Management in India,” Journal of Public Finance, analyzing Article 205’s role in modern fiscal management.

Frequently Asked Questions

  • What is the purpose of Article 205? It allows state governments to secure additional funds when the original budget allocations are insufficient or when new services arise unexpectedly.
  • Who authorizes supplementary and excess grants? The Governor presents requests for these grants, which are subject to legislative approval.
  • How does Article 205 ensure transparency? Supplementary and excess grants are discussed and approved by the Legislature, ensuring accountability in financial management.
Article 204 Article 206