Part XII: Finance, Property, Contracts and Suits

Article 282: Expenditure Defrayable by Union or State

Original Article:

The Union or a State may make any grants for any public purpose, notwithstanding that the purpose is not one with respect to which Parliament or the Legislature of the State, as the case may be, may make laws.

Explanations:

Article 282 of the Indian Constitution is a vital financial provision that grants flexibility to both the Union and State governments to allocate funds for any public purpose, even when such purposes lie outside their legislative domains. This article strengthens India's cooperative federalism by allowing intergovernmental financial assistance, promoting public welfare and unity across the nation. It represents a significant tool for supporting areas that require financial input but may fall outside regular legislative powers.

Key Provisions:

Union and State Grant-Making Authority

Article 282 provides a unique authority to both the Union and State governments, allowing them to make grants specifically for public welfare. This capability ensures that governments can directly respond to public needs, irrespective of legislative constraints.

Non-Restrictive Legislative Boundaries

Unlike other financial provisions, Article 282 does not bind the grant-making power of the Union and States strictly within their respective legislative domains. This flexibility in spending powers enables proactive financial aid in times of need or crisis across different sectors, such as health, education, and disaster relief.

Amendments:

Currently, Article 282 has not undergone any amendments. Its original form has been preserved since the Constitution's enactment, emphasizing its enduring relevance and adaptability to evolving needs within India's governance framework.

Real-Life Example:

A practical application of Article 282 can be seen in the context of the Union government providing financial assistance to state governments for handling natural disasters. For instance, when Kerala faced devastating floods in 2018, the Union government extended grants for immediate relief, despite disaster management being a state subject. This example highlights how Article 282 enables cross-jurisdictional financial support for humanitarian aid.

Historical Significance:

The inclusion of Article 282 is deeply rooted in the vision of the Constitution's framers, who anticipated the need for fiscal cooperation between the Union and States. By allowing expenditure flexibility beyond legislative boundaries, the article addresses the complexities of governing a diverse and vast country. This provision has historically reinforced the sense of national solidarity, particularly during crises requiring immediate and flexible resource allocation across state boundaries.

Debates and Deliberations:

The Constituent Assembly deliberated extensively on the flexibility provided by Article 282. Members highlighted the importance of enabling the Union and State governments to address unforeseen challenges and emergencies through grants that might fall outside their regular legislative domains. Notable discussions included:

• Dr. B.R. Ambedkar emphasized the necessity of Article 282 to provide a financial mechanism to address extraordinary public purposes.
• Shri K.T. Shah raised concerns about potential misuse of grants but acknowledged its importance for disaster relief and public welfare initiatives.
• Pandit Hriday Nath Kunzru supported the article, noting its alignment with the principles of cooperative federalism.

The debates concluded with a consensus on the article's value in promoting intergovernmental cooperation and addressing public needs effectively.

References:

• Constitution of India, 1950: Article 282 provides a foundational basis for fiscal policies facilitating public purpose expenditures.
• Reports by the Comptroller and Auditor General (CAG) of India: Highlighting instances of grants under Article 282 for state-level welfare programs supported by the Union.
• Case Studies on Federal Financial Cooperation: Published reports illustrate the role of Article 282 in cooperative federalism, with notable examples in health, disaster relief, and agricultural grants.