Annual financial statement

Article 177, Draft Constitution 1948

1) The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part of this Constitution referred to as the “annual financial statement “.

(2) The estimates of expenditure embodied in the annual financial statement shall show separately-

(a) The sums required to meet expenditure described by this Constitution as expenditure charged upon the revenues of the State; and

(b) The sums required to meet other expenditure proposed to be made from the revenues of the State; and shall distinguish expenditure on revenue account from other expenditure.

(3) The following expenditure shall be expenditure charged on the revenues of each State-

(a) The emoluments and allowances of the Governor and other expenditure relating to his office;

(b) The emoluments and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly, and in the case of a State having a Legislative Council, also of the Chairman and the Deputy Chairman of the Legislative Council;

(c) Debt charges for which the State is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;

(d) Expenditure in respect of the salaries and allowances of judges of any High Court;

(e) Any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;

(f) Any other expenditure declared by this Constitution or by the Legislature of the State by law to be so charged.

Article 202, Constitution of India 1950

(1) The Governor shall in respect of every financial year cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for that year, in this Part referred to as the “annual financial statement”.

⁠(2) The estimates of expenditure embodied in the annual financial statement shall show separately—

(a) the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of the State; and

(b) the sums required to meet other expenditure proposed to be made from the Consolidated Fund of the State;
and shall distinguish expenditure on revenue account from other expenditure.

⁠(3) The following expenditure shall be expenditure charged on the Consolidated Fund of each State—

(a) the emoluments and allowances of the Governor and other expenditure relating to his office;

(b) the salaries and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly and, in the case of a State having a Legislative Council, also of the Chairman and the Deputy Chairman of the Legislative Council;

(c) debt charges for which the State is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;

(d) expenditure in respect of the salaries and allowances of Judges of any High Court;

(e) any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;

(f) any other expenditure declared by this Constitution, or by the Legislature of the State by law, to be so charged.

Draft Article 177 (Article 202) was debated on 10 June 1949. It regulated the Annual Financial Statement of the state, and defined the scope of expenditure chargeable to the Consolidated Fund of each state.

There were no substantive amendments proposed to this Draft Article. The Chairman of the Drafting Committee proposed to replace the references to ‘revenues’ of a state with ‘Consolidated Fund’. He also moved an amendment to replace the reference to ‘emoluments’ with ‘salaries’ in clause (3)(b). These amendments were all accepted without debate.

The amended Draft Article was adopted on 10 June 1949.