Part VI: The State Legislature

Regulation of Procedure in State Legislature for Financial Business

Article 209: Financial Procedure Regulation

Overview of Article 209: Regulation of Procedure for Financial Business in State Legislature

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The Legislature of a State may, for the purpose of the timely completion of financial business, regulate by law the procedure of, and the conduct of business in, the House or Houses of the Legislature of the State in relation to any financial matter or to any Bill for the appropriation of moneys out of the Consolidated Fund of the State...

Explanations

Article 209 of the Indian Constitution empowers the State Legislature to create laws regulating financial business. This ensures that State budgets and other financial matters are managed efficiently, allowing for a streamlined process in approving and distributing funds. This provision is crucial in upholding the financial autonomy and effectiveness of State governance.

Clause-by-Clause Breakdown

Primary Authority of Financial Procedure (Main Clause)

This clause grants State Legislatures the power to establish laws that regulate the procedure for financial matters. It allows for the creation of specific rules to expedite financial business, particularly those concerning the Consolidated Fund of the State. This clause ensures that essential funds and financial decisions are not delayed due to procedural roadblocks.

Override of Procedural Rules

Article 209 provides that any law made under its authority will take precedence over procedural rules set under Article 208 (1) or any standing orders made under Article 208 (2), in case of inconsistencies. This authority is crucial for the smooth conduct of financial business, as it prevents procedural conflicts from hindering urgent financial decisions.

Real-Life Examples

  • During a fiscal emergency, a State Legislature may prioritize financial appropriations to ensure funds are directed toward immediate relief efforts, bypassing standard procedures. This is possible under the authority granted by Article 209.
  • In Maharashtra, Article 209 facilitated the timely passage of appropriation bills required for infrastructure projects, ensuring funding continuity without procedural delays.

Historical Context

Article 209 draws inspiration from the need for efficient financial governance observed in parliamentary democracies worldwide. By granting State Legislatures the authority to regulate financial procedures, the Constitution ensures that local fiscal needs are met promptly. This provision reflects India's commitment to federalism by allowing States to manage financial business autonomously.

Legislative History

Article 209 was originally introduced as Draft Article 183A during the framing of the Constitution. Proposed by Dr. B. R. Ambedkar, it aimed to ensure that financial business within State Legislatures could proceed without unnecessary delays. The Constituent Assembly recognized that financial autonomy was vital for efficient State governance, especially in situations requiring urgent appropriations. This article was adopted with broad consensus, underscoring the importance of flexibility in financial procedures at the State level.

Debates and Amendments

When Draft Article 183A was presented, members acknowledged the necessity of a streamlined approach to financial business in State Legislatures. Dr. B. R. Ambedkar explained that, without this provision, procedural conflicts could lead to delays in critical financial decisions. The article faced minimal opposition, as members agreed on the need for States to have control over their financial affairs. The draft was thus adopted without significant amendments.

References

  • The Constitution of India - Article 209.
  • Constituent Assembly Debates on Draft Article 183A.
  • Case Law: State of Punjab v. Satpal Dang (1969) - reinforcing legislative privilege in financial matters.
Article 208 Article 210