Part xxi: Transitional Provisions

Article 390: Money Received or Raised or Expenditure Incurred Between the Commencement of the Constitution and the 31st Day of March, 1950

Original Article:

Omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956).

Explanations:

Article 390 provided transitional financial provisions to account for money received, raised, or spent between the Constitution’s commencement and the end of the fiscal year on March 31, 1950. It ensured continuity in financial governance during India’s transition to independence. The Article was omitted by the Seventh Amendment as these transitional measures were no longer needed.

Clause-by-Clause Explanation:

Transitional Financial Accounting

Article 390 ensured that financial transactions conducted during the transition period were properly accounted for, maintaining fiscal responsibility.

Omission Due to Stabilized Financial Systems

By 1956, India’s financial administration had matured, eliminating the need for transitional provisions like Article 390.

Legislative History:

Article 390 was introduced to bridge the gap between colonial and independent financial systems. Its omission marked the consolidation of India’s fiscal policies.

Amendments:

The Article was omitted by the Constitution (Seventh Amendment) Act, 1956, effective from 1st November 1956, reflecting India’s shift to permanent financial systems.

Debates and Deliberations:

The Constituent Assembly discussed the need for a smooth transition in financial administration, leading to the inclusion of Article 390 as a temporary measure.