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continue in force for a period not exceeding ten years from |
the commencement of this Constitution : |
Provided that the President may at any time after |
the expiration of five years from such commencement |
terminate or modify any such agreement if after considera- |
tion of the report of the Finance Commission he thinks it |
necessary to do so. |
279. Calculation of “net proceeds”, etc.—(1) In the foregoing |
provisions of this Chapter, “net proceeds” means in relation to any tax or duty |
the proceeds thereof reduced by the cost of collection, and for the purposes of |
those provisions the net proceeds of any tax or duty, or of any part of any tax or |
duty, in or attributable to any area shall be ascertained and certified by the |
Comptroller and Auditor-General of India, whose certificate shall be final. |
(2) Subject as aforesaid, and to any other express provision of this |
Chapter, a law made by Parliament or an order of the President may, in any |
case where under this Part the proceeds of any duty or tax are, or may be, |
assigned to any State, provide for the manner in which the proceeds are to be |
calculated, for the time from or at which and the manner in which any |
payments are to be made, for the making of adjustments between one financial |
year and another, and for any other incidental or ancillary matters. |
139 |
THE CONSTITUTION OF INDIA |
280. Finance Commission.—(1) The President shall, within two years |
from the commencement of this Constitution and thereafter at the expiration of |
every fifth year or at such earlier time as the President considers necessary, by |
order constitute a Finance Commission which shall consist of a Chairman and |
four other members to be appointed by the President. |
(2) Parliament may by law determine the qualifications which shall be |
requisite for appointment as members of the Commission and the manner in |
which they shall be selected. |
(3) It shall be the duty of the Commission to make recommendations to |
the President as to— |
(a) the distribution between the Union and the States of the net |
proceeds of taxes which are to be, or may be, divided between them |
under this Chapter and the allocation between the States of the respective |
shares of such proceeds; |
(b) the principles which should govern the grants-in-aid of the |
revenues of the States out of the Consolidated Fund of India; |
(bb) the measures needed to augment the Consolidated Fund of a |
State to supplement the resources of the Panchayats in the State on the basis |
of the recommendations made by the Finance Commission of the State; |
(c) the continuance or modification of the terms |
of any agreement entered into by the Gov- |
ernment of India with the Government of any |
State specified in Part B of the First Schedule |
under clause (1) of article 278 or under article |
306 ; and |
(d) any other matter referred to the Commission by the President |
in the interests of sound finance. |
(4) The Commission shall determine their procedure and shall have such |
powers in the performance of their functions as Parliament may by law confer |
on them. |
281. Recommendations of the Finance Commission.—The President |
shall cause every recommendation made by the Finance Commission under the |
provisions of this Constitution together with an explanatory memorandum as to |
the action taken thereon to be laid before each House of Parliament. |
Miscellaneous Financial Provisions |
282. Expenditure defrayable by the Union or a State out of its |
revenues.—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. |
140 |
THE CONSTITUTION OF INDIA |
283. 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 to such Funds received by or on behalf of the Government of the |
State, their payment into the public account of the State 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 the Legislature of the |
State, and, until provision in that behalf is so made, shall be regulated by rules |
made by the Governor or Rajpramukh of the State. |
284. Custody of suitors' deposits and other moneys received by |
public servants and courts.—All moneys received by or deposited with— |
(a) any officer employed in connection with the affairs of the |
Union or of a State in his capacity as such, other than revenues or |
public moneys raised or received by the Government of India or the |
Government of the State, as the case may be, or |
(b) any court within the territory of India to the credit of any |
cause, matter, account or persons, |
shall be paid into the public account of India or the public account of State, as |
the case may be. |