🧾 Article 281 of the Indian Constitution
Title: Recommendations of the Finance Commission
🔍 Explanation:
Article 281 outlines the procedure for the President to act upon the recommendations of the Finance Commission made under Article 280.
📘 Key Provisions of Article 281:
| Clause | Provision |
|---|---|
| Main Provision | The President of India shall cause every recommendation made by the Finance Commission to be laid before both Houses of Parliament, along with: |
-
An explanatory memorandum showing the action taken on the Commission’s recommendations. |
📊 Chart Summary:
| Feature | Details |
|---|---|
| Article | 281 |
| Deals with | Procedure after Finance Commission submits its report |
| Who lays the report? | President of India |
| Where is it presented? | Lok Sabha and Rajya Sabha |
| Accompanied by | Explanatory Memorandum (details of government action) |
| Purpose | Ensures transparency and parliamentary accountability |
🧠 Why Article 281 is Important:
-
It ensures that Finance Commission recommendations are public and reviewed.
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Maintains transparency in how the Union Government responds to these financial suggestions.
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Empowers Parliament to debate and monitor the Centre’s actions on revenue sharing.
Here is a combined chart comparing Article 280 and Article 281 of the Indian Constitution — showing how the Finance Commission is formed and how its recommendations are processed:
📊 Combined Chart: Article 280 vs Article 281
| Feature | Article 280 – Finance Commission | Article 281 – Recommendations of Finance Commission |
|---|---|---|
| Main Focus | Creation, composition, and function of the Finance Commission | Laying the Commission’s recommendations before Parliament |
| Who is involved? | President, Chairman, and 4 members | President, Parliament (Lok Sabha + Rajya Sabha) |
| What does it do? | Forms a Finance Commission every 5 years (or earlier) | Ensures the Commission’s report is made public and acted upon |
| Key Functions | 1. Recommend tax distribution2. Grants-in-aid3. Other financial matters referred by President | 1. Submit Commission’s report to Parliament2. Attach explanatory memo |
| Authority Type | Constitutional body with advisory role | Procedure-based obligation for transparency |
| Binding Nature | Recommendations are not binding, but influential | President must present the report + action memo to Parliament |
| Ensures | Fair fiscal federalism | Parliamentary transparency and accountability |
| Frequency | Every 5 years or earlier | As and when the Finance Commission submits its report |
| Report submitted to? | President of India | Both Houses of Parliament |
🔁 Visual Flow of the Finance Commission Process:
[ Article 280 ]
↓
President constitutes Finance Commission
↓
Commission studies & recommends:
- Tax sharing
- Grants-in-aid
- Other financial matters
↓
[ Article 281 ]
↓
President lays:
- Commission's report
- Explanatory memorandum
↓
Before:
- Lok Sabha
- Rajya Sabha
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