Article 281 of Indian Constitution
Article 281: Recommendations of the Finance Commission
What does Article 281 say?
Article 281 directs the Union government on what to do after it receives the recommendations from the Finance Commission.
It states that the President shall cause the recommendations of the Finance Commission to be laid before both Houses of Parliament.
Then, the Union government may take action on these recommendations but is not bound to follow them.
🔹 Key Points:
The Finance Commission submits its report to the President.
The President lays the report before Parliament.
The Union government considers the recommendations and may accept, modify, or reject them.
Parliament can discuss the report, but the government is not constitutionally bound to implement every recommendation.
🔹 Significance:
Provides transparency in the financial relations between Centre and States.
Ensures that Finance Commission’s recommendations are formally presented to lawmakers.
Maintains flexibility for the government to decide which recommendations to implement.
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