Article 205 of the Costitution of India with Case law
Here is a detailed explanation of Article 205 of the Constitution of India, along with important case law.
🧾 Article 205 – Supplementary, Additional or Excess Grants
🔹 Text of Article 205:
(1) If the amount authorised by any law made in accordance with the provisions of Article 204 to be expended for a particular service for the current financial year is found to be insufficient, or if a need has arisen during the current financial year for additional expenditure upon some new service not contemplated in the annual financial statement for that year, or if any money has been spent on any service during a financial year in excess of the amount granted for that service, then the Governor shall cause to be laid before the House or the Houses of the Legislature of the State another statement showing the estimated amount of that expenditure or cause to be presented a demand for such excess.
(2) The provisions of Articles 202, 203 and 204 shall have effect in relation to any such statement and expenditure or demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein.
📌 Key Concepts under Article 205
| Clause | Meaning |
|---|---|
| Clause (1) | Deals with Supplementary, Additional, or Excess Grants when: |
Original grant is insufficient
New service requires funds
Excess expenditure is incurred without prior approval |
| Clause (2) | The process for passing these grants is same as for regular budget (Articles 202–204 apply). |
🧩 Types of Grants under Article 205
| Type of Grant | Description |
|---|---|
| Supplementary Grant | When money sanctioned earlier is insufficient for the current service. |
| Additional Grant | For a new service or expenditure not included in the original budget. |
| Excess Grant | When more money is already spent than what was sanctioned; it needs post-facto approval of the Legislature. |
⚖️ Important Case Law on Article 205
1. State of Punjab v. Gurdial Singh, AIR 1980 SC 319
Issue: Use of state funds and legislative authority.
Relevance: The case emphasized the constitutional discipline of expenditure from the Consolidated Fund of the State, referring indirectly to the requirement of supplementary and excess grants under Article 205.
2. Sundarjas Kanyalal Bhatija v. Collector, Thane, (1989) 3 SCC 396
Relevance: Though the case primarily concerns judicial discipline, it refers to fiscal discipline and budgetary process, emphasizing constitutional methods of authorizing expenditure—including procedures under Articles 202 to 205.
3. K.N. Guruswamy v. State of Mysore, AIR 1954 SC 592
Facts: Challenged a liquor auction and state expenditure.
Relevance: Emphasized that state expenditures must follow legal authorization procedures, supporting the significance of Articles 202–205.
💼 Practical Implications
When a state government overspends or encounters unexpected expenditures, it must seek Legislative Assembly approval via Article 205.
Ensures accountability and parliamentary control over public finance at the state level.
Used every year in almost every state for additional funding needs and to regularize excess expenditure.
✅ Summary Table
| Feature | Details |
|---|---|
| Article Number | 205 |
| Subject | Supplementary, Additional, and Excess Grants in State Budget |
| Governor's Role | Lays the grant request before the Legislature |
| Linked Articles | Articles 202 (Annual Financial Statement), 203 (Expenditure), and 204 (Appropriation Bill) |
| Key Case Law | Gurdial Singh (1980), K.N. Guruswamy (1954) |
| Purpose | To manage unforeseen or extra financial requirements of the state government |
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