What is Article 273?

By Ritesh|Updated : September 4th, 2022

Article 273 deals with the Grants in place of export duty on jute and jute products. One of the forms of subsidies is provided each year as grants to aid the revenues of the States of Assam, Bihar, Orissa, and West Bengal. Duty on jute terms went back to 1916 and became applicable to jute-growing provinces under the Government of India Act, 1935.

Article 273- Export Duty n Jute And Jute Products

  • 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.
  • The Act provided that "one-half or such greater part as His Majesty in Council may determine of the net proceeds of each year of 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 which jute grows in proportion to the respective amount of jute grown in them.”
  • Sir Otto Niemeyer, who was asked to make a recommendation regarding the share of export duty to be allocated to the provinces, recommended that the share be increased to 62 1/2 percent of the net revenue. This recommendation was incorporated into the Government of India Ordinance, 1936.

Summary:

What is Article 273?

Article 273 deals with grants instead of export duty levied on the jute and its products. 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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