Article 273 of CoI : Article 273: Grants in lieu of export duty on jute and jute products.

Explanation using Example

Example 1:

Scenario: The Government of India decides to levy an export duty on jute products for the financial year 2023-2024.

Application: According to Article 273 of the Constitution of India, the states of Assam, Bihar, Odisha, and West Bengal are entitled to receive grants-in-aid from the Consolidated Fund of India. This is in lieu of receiving a share of the net proceeds from the export duty on jute and jute products.

Example: The Government of India collects ₹100 crore as export duty on jute products in the financial year 2023-2024. Instead of distributing a share of this ₹100 crore directly to the states of Assam, Bihar, Odisha, and West Bengal, the central government will allocate a prescribed sum from the Consolidated Fund of India to these states as grants-in-aid. This ensures that these states receive financial support without directly depending on the fluctuating export duty revenues.

Example 2:

Scenario: The Government of India decides to stop levying export duty on jute products starting from the financial year 2025-2026.

Application: According to Article 273, the grants-in-aid from the Consolidated Fund of India to the states of Assam, Bihar, Odisha, and West Bengal will continue only as long as the export duty on jute and jute products is levied or until ten years from the commencement of the Constitution, whichever is earlier.

Example: If the export duty on jute products is discontinued in 2025-2026, the grants-in-aid to the states of Assam, Bihar, Odisha, and West Bengal will also cease. However, if the export duty had continued, the grants-in-aid would have been provided until the expiration of ten years from the commencement of the Constitution, which would be until 1960 (since the Constitution commenced in 1950).