SSC
Which Part of the Indian Constitution deals with Finance, Property, Contracts and Suits?
Answer (Detailed Solution Below)View answer ▾Hide ▴
Answer: Option A — Part XII
Detailed Solution
Part XII of the Constitution deals with Finance, Property, Contracts and Suits.
Main contents of Part XII:
Chapter I, Finance: It deals with the distribution of revenues between the Union and the States, the Consolidated Funds, the Contingency Funds and the Public Accounts, the taxes levied by the Union and the States, grants-in-aid, and the Finance Commission.
Chapter II, Borrowing: It deals with the borrowing powers of the Government of India and of the States.
Chapter III, Property, Contracts, Rights, Liabilities, Obligations and Suits: It deals with the property of the government, contracts made in the name of the President or the Governor, and suits by and against the government.
Chapter IV, Right to Property: It contains the provision that no person shall be deprived of his or her property save by authority of law, which was inserted when the right to property was removed from the Fundamental Rights.
The Finance Commission:
- It is constituted by the President every five years.
- It recommends the distribution of the net proceeds of taxes between the Union and the States, and among the States.
- It also recommends the principles governing grants-in-aid to the States.
The first Finance Commission (1951) was headed by K. C. Neogy.
Importance of Part XII:
- It forms the basis of the financial relations between the Centre and the States, which is an important part of Indian federalism.
- It ensures that the government cannot spend money without the authority of the legislature, and that its accounts are properly kept and audited.
Why not the other options?
- ✗Part XIII deals with trade and commerce; Part XIV with the services; Part XIX with miscellaneous provisions.
Quick tip
Remember: Part XII = Finance, Property, Contracts and Suits (Finance Commission, Consolidated and Contingency Funds, borrowing, right to property as a legal right).
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Important Articles & Schedules — Preparation
This question tests your understanding of Important Articles & Schedules, a key topic in the General Knowledge section. The detailed solution above uses a step-by-step approach to show the reasoning, and where available, a shortcut that helps you solve similar questions in under 90 seconds during the actual exam.
This topic covers the important articles of the Constitution that exams test most often, the parts of the Constitution, and the twelve schedules, such as the Seventh Schedule (Union, State and Concurrent Lists), the Eighth Schedule (languages) and the Tenth Schedule (anti-defection law). Questions directly ask which article or schedule deals with a subject, so make a table and revise it often. High-frequency examples include Article 112 (annual financial statement), Article 280 (Finance Commission), Article 324 (Election Commission) and Article 368 (amendment procedure). Remember that the Ninth Schedule was added by the 1st Amendment in 1951. Practise the important articles and schedules questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.