Article 283 of Indian Constitution: Funds Management for Consolidated, Contingency and Public Accounts

The management and control of the Union and State government funds is articulated in Article 283 of Indian Constitution. It states that Parliament shall make provisions regarding the custody, withdrawal and payment of money from the Consolidated Fund of India, Contingency Fund of India and public revenues. In the absence of those laws, the President may make rules. For states, these functions are covered by state laws, but the Governor is empowered to make rules pending these laws. This promotes control over finances and accountability within the constitution. Explore other important Constitutional Articles.

Article 283 of Indian Constitution

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 (o such Funds, received by or on behalf of the Government of the State, their payment into the public account of the State and 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.

Note: "The information on Article 283 of Indian Constitution is referred from the official website of the Indian Code and is for reference only. Original laws and orders remain untouched.

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Article 283 governs fund custody, empowering Parliament or State Legislatures to ensure financial accountability, transparency, and proper administration. Here’s a Simplified Interpretation of Article 283 of Indian Constitution:

1. Custody of Funds: The custody, payment, and withdrawal of funds from the Consolidated Fund and Contingency Fund of India and the States are governed by Article 283 of Indian Constitution.
2. Regulated by Law: These funds are regulated by the law made by Parliament in respect of Union matters and by the State Legislatures when touching upon State matters.
3. Interim Rules: Until such law is made, rules for the management of the funds may be made by the President for the Union or the Governor for the States.
4. Purpose: Ensures proper financial administration and accountability in handling public funds.
5. Significance: Plays a key role in maintaining fiscal discipline and transparency in government operations.

Article 283 of Indian Constitution Significance

Through the creation of legislatures, enabling interim rules, accountability, safeguarding public funds, providing transparency and financial discipline, Article 283 takes care of accountability in fund management. Here is a highlighting of the significance of Article 283 of Indian Constitution -

• Custody of Funds: The proper use of relevant parts of the Consolidated Fund and Contingency Fund of India as well as of the States is made clear by this article.
• Legal Framework: It makes arrangements empowering both Parliament and State Legislatures to control management of funds by law.
• Interim Rules: Permits the President or the Governor to make rules in the absence of specified laws.
• Transparency: Responsibly allows accuracy in the spending of public money.
• Financial Accountability: Ensures responsible and proper use of public funds. Ensures uninterrupted financial administration until certain laws are passed
• Trust in Governance: Strengthens public confidence by ensuring integrity in government financial operations.

Article 283 of Indian Constitution Landmark Cases

Article 283 of Indian Constitution covers procedural aspects of financial management, like withdrawal and payment of money out of the Contingency Fund of India and of the public moneys by the Indian Government, as also the custody of the Contingency Fund and Consolidated Fund of the State which is vested on the Governor of the State. No precise leading case construing Article 283 itself exists, but its underlying concept has had a significant impact on those cases which have arisen involving financial accountability and governance. So the commissions like the Finance Commission and Public Accounts Committee that hold the executive to account for compliance with the provisions of Article 283 of Indian Constitution. It underscores importance of fiscal discipline and transparency in public fund management.

Conclusion

Article 283 of Indian Constitution is to be seen as a means of securing sound finance in India. It is regulated by the custody, payment and withdrawal of moneys from the Consolidated and Contingency Funds of the Union and the States; in this manner the Act brings about transparency and accountability in the matter of public finance. When legislatures are authorized to make laws and there are temporary rules, flexibility and regularity of government can be achieved. This clause ensures that public money is safe and not misused by anyone. The responsible use of money and the rule of fiscal discipline enhances the confidence and trust in the financial system of India.