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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.