📜 Article 273 of the Indian Constitution
Title: Grants in lieu of export duty on jute and jute products
🔹 Full Text (Simplified Explanation):
Article 273 provides for grants-in-aid by the Union Government to certain States, as compensation for the loss of revenue from export duties on jute and jute products.
✅ Key Provisions of Article 273:
| Feature | Description |
|---|---|
| 🏛️ Applicable To | States that used to benefit from export duty on jute and jute products (mainly West Bengal, Assam, Bihar, and Orissa at the time of Constitution) |
| 💰 Type of Grant | Compensatory grant in lieu of export duties |
| 🕒 Duration | Initially provided for 10 years from commencement of Constitution (i.e., until 1960) |
| 📜 Determination | The amount and distribution of the grant was to be decided by the Finance Commission |
| 🧾 Context | As export duty on jute was a central subject, the States lost a major source of income—so this Article ensured temporary compensation |
🧠 Why It Was Important:
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When the Constitution came into force, export duties became a Union subject, removing State powers over such revenues.
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States like West Bengal and Assam were heavily dependent on jute exports for income.
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So Article 273 provided for temporary financial relief through Union grants.
⚠️ Present Status:
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The grants under Article 273 have long expired (after the initial 10-year period).
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However, the article remains part of the Constitution, though it has limited practical relevance today.
📌 Key Points for Exams:
| Question | Answer |
|---|---|
| What is Article 273 about? | Grants in lieu of export duty on jute/jute products |
| Who receives the grants? | States like West Bengal, Assam, Bihar, Odisha |
| For how long? | 10 years from 1950 (i.e., till 1960) |
| Who recommends the amount? | Finance Commission |
| Is it still in use? | ❌ No, now mostly obsolete |
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