Previous Year Question

The correct answer is Articles 268 to 281. In Part XII—Finance, Property, Contracts and Suits, Chapter I of the Constitution contains the principal provisions dealing with distribution of revenues between the Union and the States. The official Constitution itself places Articles beginning with 268 under the heading “Distribution of Revenues between the Union and the States.”

Some important provisions within this range are—

Article 268 — Duties levied by the Union but collected and appropriated by the States.
Article 269 — Taxes levied and collected by the Union but assigned to the States.
Article 269A — Levy and collection of GST in the course of inter-State trade or commerce.
Article 270 — Taxes levied and distributed between the Union and the States.
Article 275 — Grants from the Union to certain States.

Within the same sequence, Article 280 provides for the Finance Commission, which makes important recommendations relating to the distribution of tax proceeds between the Union and the States. Article 281 requires the President to lay the Finance Commission's recommendations, together with an explanatory memorandum on the action taken, before both Houses of Parliament.

A useful boundary to remember is that Articles 268–281 principally cover revenue distribution and the Finance Commission, while Article 282 onwards contains miscellaneous financial provisions, and Articles 292–293 deal with borrowing by the Union and the States.