🧾 Article 290 of the Indian Constitution
Title: Adjustment in respect of certain expenses and pensions
🔍 Explanation:
Article 290 deals with the financial obligations of the Government of India towards certain States for:
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Expenses incurred before the Constitution came into force, or
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Pensions payable in respect of services rendered before the Constitution’s commencement.
It allows the Government of India to make grants-in-aid to States for this purpose.
📘 Key Provisions of Article 290:
| Clause | Provision |
|---|---|
| Main Provision | The Government of India may, under Parliament’s authority, make grants to any State to cover: |
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Expenses incurred before 26 January 1950, or
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Pensions payable due to such past service. |
| Purpose | To ensure smooth financial transition from the British Indian Government and Princely States to the Republic of India. |
📊 Summary Chart: Article 290
| Feature | Details |
|---|---|
| Article | 290 |
| Subject | Financial adjustments for pre-Constitution expenses/pensions |
| Grants given by | Government of India |
| To whom? | State Governments |
| Authority for grants | Must be under a law made by Parliament |
| Purpose | Support legacy financial obligations of States post-independence |
| Example | Pension of a civil servant who served a princely state before 1950 |
🧠 Why Article 290 is Important:
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Ensures financial stability for States post-independence.
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Recognizes the merger of princely states and provinces into the Indian Union.
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Fulfills contractual and legacy obligations without burdening individual States unfairly.
Here is a comparative chart of Articles 289 and 290 of the Indian Constitution — both articles focus on supporting State finances, but in very different ways:
📊 Comparison: Article 289 vs Article 290
| Aspect | Article 289 | Article 290 |
|---|---|---|
| Title | Exemption of property and income of a State from Union taxation | Adjustment in respect of certain expenses and pensions |
| Purpose | To protect States from being taxed by the Union | To allow financial grants from the Union to States for legacy expenses |
| Who benefits? | State Governments | State Governments |
| Who is restricted? | Union Government from taxing State property/income | No restriction — this article permits financial support |
| Type of Support | Tax exemption on State income/property | Grants-in-aid for past expenses or pensions |
| Exception Clause | Income from commercial activity is taxable by Union | Applies only to pre-1950 obligations |
| Role of Parliament | Can declare a business non-commercial to grant exemption | Must authorize grants by law |
| Example Use Case | A State-owned transport service’s income may be taxed unless exempted | Central govt. pays pensions of former princely state employees |
| Constitutional Goal | Maintain State autonomy in taxation | Provide financial transition support after independence |
🧠 Key Distinction:
| Theme | Article 289 | Article 290 |
|---|---|---|
| Type of Provision | Tax Shield for States | Compensatory Grant for States |
| Focus Area | Prevents taxation by Union | Enables funding by Union |
| Applicability Timeline | Ongoing | Applies to pre-1950 commitments |
🔁 Visual Snapshot:
[ Article 289 ] ➝ Protects State income/property from Union tax
[ Article 290 ] ➝ Allows Centre to fund State pensions/expenses from pre-Constitution era
Here is a comprehensive combined chart of Articles 285 to 290 of the Indian Constitution. These articles collectively define the financial relationship, exemptions, and obligations between the Union and State Governments, ensuring a balanced fiscal federal structure.
📊 Combined Chart: Articles 285 to 290 – Inter-Governmental Fiscal Framework
| Article | Title | Purpose / Focus | Who Benefits | Who Is Restricted or Obligated | Key Highlights |
|---|---|---|---|---|---|
| 285 | Exemption of Union property from State taxation | Prevents States from taxing Union Government property | Union Government | State Governments | State taxes invalid unless Parliament allows it. Pre-1950 taxes may continue. |
| 286 | Restrictions on State taxation of sales/purchases | Bans States from taxing inter-State, import/export sales | Traders / Businesses | State Governments | Parliament decides what qualifies as inter-State/foreign sale. |
| 287 | Exemption from taxes on electricity consumed/sold to Union | Prohibits States from taxing electricity consumed by or sold to the Union Government | Union Government | State Governments | Ensures low energy costs for national institutions. Pre-1950 taxes can continue. |
| 288 | Exemption from taxes on water/electricity for Union services | Prevents States from taxing utilities (water/electricity) used for railways/Union purposes | Union Government | State Governments | Applies to Union-controlled services. Parliament can override. |
| 289 | Exemption of State property/income from Union taxation | Prohibits the Union from taxing State income or property, except commercial activities | State Governments | Union Government | Parliament may declare an activity non-commercial to restore exemption. |
| 290 | Adjustment for past expenses/pensions | Allows Union Government to give grants-in-aid to States for pre-Constitution liabilities | State Governments | Union Government (as fund provider) | For legacy pensions or expenditures incurred before 26 Jan 1950. |
🧠 Key Themes Across Articles 285–290:
| Theme | Covered By | Explanation |
|---|---|---|
| Union Tax Immunity from States | Article 285, 287, 288 | Union property and electricity/water for Union use can’t be taxed by States |
| State Tax Immunity from Union | Article 289 | Union can’t tax State income/property (unless commercial) |
| Trade & Commerce Protection | Article 286 | Ensures free inter-State and international trade |
| Support for Legacy Expenses | Article 290 | Grants to States for expenses/pensions from pre-1950 era |
| Parliamentary Override Power | Articles 285, 286, 287, 288, 289 | Parliament may override/exempt taxation rules via law |
🔁 Visual Relationship Overview:
╭──────────────────────────── Fiscal Immunities ────────────────────────────╮
│ Article 285 → State can't tax Union property │
│ Article 289 → Union can't tax State property/income (unless commercial) │
│ Article 287 → No State tax on electricity used/sold to Union │
│ Article 288 → No State tax on water/electricity for Union services │
╰──────────────────────────────────────────────────────────────────────────╯
╭──────────────────────────── Trade & Transition ───────────────────────────╮
│ Article 286 → State can't tax inter-State/import/export trade │
│ Article 290 → Union grants for State’s pre-1950 obligations │
╰──────────────────────────────────────────────────────────────────────────╯
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