What is Article 273?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

Article 273 deals with the ‘Grants’ in place of export duty on jute and jute products. The States of Assam, Bihar, Orissa, and West Bengal receive grants as one of the forms of subsidies each year to help with their tax collections. Under the 1935 Government of India Act, duty on jute terms, which date back to 1916, became applicable to the provinces that grow jute.

Article 273 of Indian Constitution

The question of giving the jute-growing provinces a share of the export duty on jute and jute products was considered during the constitutional debates preceding the enactment of the Government of India Act 1935.

  • According to the Act, “any export duty on jute or jute manufactures shall not form part of the Federation, but shall be assigned to the provinces or federated states in proportion to the respective amount of jute grown in them, or such greater part as His Majesty in Council may determine of the net proceeds of each year of any such export duty.”
  • Sir Otto Niemeyer, who was asked to provide advice regarding the provinces’ share of the export duty, suggested that it be raised to 62 1/2 percent of the net revenue. The Government of India Ordinance, 1936 was amended to include this suggestion.


What is Article 273?

The matter of dealing with the grants instead of export duty levied on the jute and its products has been provided for in the Article 273 of the Indian Constitution. They shall be charged to the Consolidated Fund of India every year as grants for the revenues of the states of Bihar, Assam, West Bengal, and Orissa.

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