Articles 273 and 274 of the Constitution of India

Article 273 deals with a transitional constitutional arrangement for grants in lieu of export duty on jute and jute products. Article 274 requires the President's recommendation before specified Bills or amendments affecting taxation interests of the States can be introduced or moved in Parliament.

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Article 273 - Grants in lieu of export duty on jute and jute products

Article 273 is located in Part XII, Chapter I of the Constitution, within the provisions governing distribution of revenues between the Union and the States. It created a time-limited grant-in-aid arrangement for Assam, Bihar, Orissa and West Bengal in place of assigning those States a share of the net proceeds of export duty on jute and jute products.

Substance of Article 273

Clause (1): Sums prescribed as grants-in-aid were to be charged each year on the Consolidated Fund of India for the revenues of Assam, Bihar, Orissa and West Bengal, in lieu of assignment of a share of the net proceeds of export duty on jute and jute products.

Clause (2): The prescribed sums were to continue only while the Union continued to levy the relevant export duty or until ten years from the commencement of the Constitution, whichever occurred earlier.

Clause (3): For Article 273, the expression "prescribed" has the same meaning as in Article 270.

Current relevance: Article 273 remains part of the constitutional text, but the payment mechanism in clause (2) was expressly transitional and could not continue beyond ten years from the commencement of the Constitution. The constitutional text uses the historical State name "Orissa"; the State is now named Odisha.

Article 274 - Prior recommendation of President for taxation Bills affecting States

Article 274 places a procedural constitutional condition on specified taxation proposals in Parliament. A Bill or amendment falling within clause (1) cannot be introduced or moved in either House of Parliament except on the recommendation of the President.

Matters covered by Article 274(1)

The requirement applies where a Bill or amendment imposes or varies a tax or duty in which States are interested; varies the meaning of "agricultural income" for enactments relating to Indian income-tax; affects principles governing moneys distributable to States under the preceding provisions of the Chapter; or imposes a surcharge for Union purposes of the kind mentioned in the preceding provisions of the Chapter.

Meaning of "tax or duty in which States are interested"

Under Article 274(2), the expression covers: (a) a tax or duty whose net proceeds, wholly or partly, are assigned to any State; and (b) a tax or duty by reference to whose net proceeds sums are for the time being payable out of the Consolidated Fund of India to any State.

Meaning and practical effect of Articles 273 and 274

Article 273 is principally historical and transitional. It addressed a specific fiscal arrangement connected with jute export duty at the commencement of the Constitution.

Article 274 continues to state an important constitutional procedure for parliamentary legislation affecting specified State taxation interests. The President's recommendation is a condition attached to the introduction or moving of a Bill or amendment that falls within the categories expressly identified in Article 274(1).

These provisions should be read with the surrounding fiscal provisions in Part XII, including Articles 270 and 271, because Article 273 adopts the meaning of "prescribed" from Article 270 and Article 274 refers to distribution principles and surcharges dealt with in the preceding provisions of the Chapter.

Official constitutional resources

For the authoritative constitutional text and amendments, consult the official publications maintained by the Government of India:

This page is an explanatory legal information resource. Where exact statutory or constitutional wording is required, verify it from the latest official text.