What Is Constitution Of India Article 202?

Constitution Of India Article 202: Annual Financial Statement

(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, referred to as the Annual Financial Statement.

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

• (a) The sums required to meet expenditure described by this Constitution as charged upon the Consolidated Fund of the State.
• (b) The sums required to meet other expenditure proposed to be made from the Consolidated Fund of the State.

It shall also distinguish expenditure on revenue account from other expenditures.

Expenditure Charged on the Consolidated Fund

(3) The following expenditures shall be charged on the Consolidated Fund of each State:

• (a) Emoluments and allowances of the Governor and other expenditures relating to his office.
• (b) Salaries and allowances of the Speaker, Deputy Speaker of the Legislative Assembly, and, in case of a State having a Legislative Council, also of the Chairman and Deputy Chairman.
• (c) Debt charges including interest, sinking fund charges, and redemption charges.
• (d) Salaries and allowances of Judges of any High Court.
• (e) Any sums required to satisfy judgments, decrees, or awards of any court or arbitral tribunal.
• (f) Any other expenditure declared by the Constitution or by State Legislature law to be charged.

Brief Detail

Article 202 of the Indian Constitution mandates that the Governor presents an annual financial statement before the State Legislature. This document details the estimated revenue and expenditure for the financial year, distinguishing between revenue and other accounts.

Question & Answers

What is the Annual Financial Statement in Article 202?

The Annual Financial Statement is a report presented by the Governor, containing details of estimated receipts and expenditures of the State for a financial year.

What expenditures are charged to the Consolidated Fund of the State?

Expenditures such as salaries of the Governor, High Court Judges, debt charges, and sums required for legal judgments are directly charged to the Consolidated Fund of the State.

Example

Suppose a State Government prepares its budget for the upcoming financial year. The Governor, before presenting it to the State Legislature, ensures that all necessary expenditures—such as salaries of judges and repayment of state loans—are appropriately categorized in the Annual Financial Statement.

Summary

Article 202 ensures financial transparency by requiring the State Government to present a detailed financial statement before the Legislature. It also mandates specific expenditures to be charged on the Consolidated Fund to ensure smooth governance.