Vol. 13 · pages 831–835

798 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES free to act in his discretion, while the draft as proposed by me says that he should act in his individual judgment which means……….. Pandit Hirday Nath Kunzru (United Provinces : General) : Will the honourable Member permit me to make my point clear, because I feel that he has probably not completely understood what I said ? May I make clear what I said in one or two sentences. Under clause (3) of article 260 the President may refer any matter he likes to the Finance Commission for its opinion. I do not, therefore, want to debar the President from consulting the Commission in any matter that he likes. All that I am objecting to is that the Finance Commission without any reference from the President, should have the power to say that the allocation of the net proceeds of the income-tax between the Centre and the provinces is not what it should be and that new percentages recommended by it should be fixed. This is all that I said yesterday. The Honourable Dr. B. R. Ambedkar : That rather makes the situation far more complicated because I cannot see how the Finance Commission can make any recommendation unless the point has been specifically referred to it or included in the terms of reference. Pandit Hirday Nath Kunzru : Under sub-clause (a) of clause (3) of article 260 the Commission may on its own initiative make recommendations on that subject. Let my Friend read the sub-clause to understand the meaning. The Honourable Dr. B. R. Ambedkar : “any other matter referred to the Commission by the President in the interest of sound finance.” Pandit Hirday Nath Kunzru : That is (d). Will the honourable Member refer to article 260, the article which we are disucussing, with particular reference to the clause that I dealt with yesterday ? Sub-clause (a) of clause (3) of article 260 says— “It shall be the duty of the Commission to make recommendations to the President as to the distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them………” That is the thing that I am objecting to. The power of the President under sub-clause (d) of clause (3) to refer any other matter that he likes to the Finance Commission will not be disturbed if my amendment is accepted. The Honourable Dr. B. R. Ambedkar : I do not know. The position is quite clear whether the President is to be left in his complete discretion

799DRAFT CONSTITUTION to make any allocation he likes with regard to the income-tax or whether he should be guided by the recommendations made by the Commission. It seems to me that the position of the President will be considerably strengthened if he could refer as a jutifying cause to the recommendations made by the Finance Commission. It seems to me that the Finance Commission will be acting as a bumper between the President and the provinces winch may be clamouring for more revenue from income-tax. I therefore do not think there is any reason for accepting the amendment moved by my Friend, Mr. Kunzru. Mr. President : I have now to put the two amendments to the vote. First, amendment No. 95 moved by Dr. Ambedkar. [Dr. Ambedkar’s amendment was adopted. Article 260, as amended, was added to the Constitution.] ARTICLE 261 *The Honourable Dr. B. R. Ambedkar : Sir, I move : “That in article 261, for the word ‘Parliament’ the words ‘each House of Parliament’ be substituted.” ***** †The Honourable Dr. B. R. Ambedkar : Mr. President, Sir, I am sorry I cannot accept the amendments moved to this article. It seems to me that the amendment are based upon a complete misunderstanding of the provisions contained in article 261, and I feel that no amendment is necessary at all. In order to understand exactly what article 261 means, you have to go back to the previous articles which deal with the distribution of the income-tax and the distribution of the net proceeds of the Centrally collected excise duties. Obviously, with regard to the distribution of the income-tax, the article which we have passed so far leave the matter entirely with the President acting on the recommendations of the Finance Commission. That being so, it would not now be possible to say by an amendment that so far as the recommendations with regard to the distribution of the income-tax are concerned, the matter may be left to Parliament. My submission is that that issue is now closed, we having passed an article leaving to the President the allocation and the distribution of the income-tax either in the initial stage or in the subsequent variations. * CAD, Vol. IX, dated 10th August 1949, p. 315. †Ibid., Pp. 328-29.

800 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES Now, the other matter which is covered by article 261 relates to the distribution of the revenue collected from Centrally levied excise duties. It is also clear from the article that we have passed that this matter shall be governed by the law made by Parliament. The President cannot do it himself. Therefore the words “shall put before Parliament a memorandum stating the action that has been taken” merely means this that the President shall say, as he is bound to say, that a Bill shall be introduced before Parliament to regularise or sanction the proceeds of the excise duties and the manner in which they are to be allocated. Consequently, if my Friend, Prof. Shibban Lai Saksena will read article 261 in relation to the other articles that we have passed, he will realise that so far as the distribution of the excise duties is concerned, the result will be the same as what he proposes to bring about by his amendment therefore I think that his amendment is quite unnecessary. Mr. President : I will now put the amendments to the vote. [Articles 261, as amended by Dr. Ambedkar’s amendment was adopted and added to the Constitution.] ARTICLE 263 *The Honourable Dr. B. R. Ambedkar : Sir, I move: “That for article 263 the following be substituted :— ‘263. (1) The custody of the Consolidated Fund of India, the payments of moneys into such Fund, the withdrawal of moneys therefrom and all other matters connected with or ancillary to the matters aforesaid shall be regulated by law made by Parliament, and until provision in that behalf is so made by Parliament, shall be regulated by rules made by the President. (2) The custody of the Consolidated Fund of a State, the payments of moneys into such Fund and the withdrawal of moneys therefrom, and all other matters connected with or ancillary to the matters aforesaid shall be regulated by law made by the Legislature of the State, and, until provision in that behalf is so made by the Legislature of the State shall be regulated by rules made by the Governor of the State.’ ” I do not think any explanation is necessary. Pandit Hirday Nath Kunzru : Mr. President, I move : “That in the amendment just moved by Dr. Ambedkar, after the words ‘Consolidated Fund’, wherever they occur, the words ‘and the Contingency Fund’ be inserted ; and for the words ‘such Fund’, wherever they occur, the words ‘such Funds’ be substituted.” Custody of Consolidated Funds, the payment of moneys into and withdrawal of moneys from such funds. * CAD, Vol. IX, dated 10th August 1949, p. 330.

801DRAFT CONSTITUTION The House has already agreed to the establishment of a Contingency Fund. It is therefore necessary to provide for the manner in which money may be put into the Contingency Fund and may be withdrawn from it. This is a purely formal amendment and I trust that the House will accept it. Mr. President : I take it that Dr. Ambedkar will accept Pandit Kunzru’s amendment. The Honourable Dr. B. R. Ambedkar : I accept the amendment. Article 263, as amended, was added to the Constitution. ***** ARTICLE 267 *The Honourable Dr. B. R. Ambedkar : Sir, I move : “That in article 267— (i) after the words ‘Crown in India’ the words ‘or after such commencement in connection with the affairs of the Union or of a State’ be inserted ; (ii) for the words ‘revenues of India’ wherever they occur, the words ‘Consolidated Fund of India’ be substituted ; (iii) for the words ‘revenues of a State’ wherever they occur, the words ‘Consolidated Fund of the State’ be substituted ; (iv) the words and figure ‘for the time being specified in Part I of the First Schedule’ be omitted ; and (v) for the words ‘revenues of the State’, the words ‘Consolidated Fund of the State’ be substituted.” It is just consequential. ***** The Honourable Dr. B. R. Ambedkar : Sir, I do not accept any amendment. Mr. President : I put the amendments to vote. [Dr. Ambedkar’s amendment was adopted. All other amendments moved by Prof. S. L. Saksena, H. V. Kamath and Dr. P. S. Deshmukh were rejected. Article 267, as amended, was added to the Constitution] ARTICLE 268 ***** †The Honourable Dr. B. R. Ambedkar : Sir, except for the last oration of my Friend Prof. K. T. Shah in which he suggested that we should introduce a clause putting limitation upon the authority of Parliament to sanction loans, I was really quite unable to understand the dissent which has been expressed by other speakers with regard to the provision contained in article 268. It is admitted that it is the executive alone which can pledge the credit of the country for borrowing purposes, * CAD, Vol. IX, dated 10th August 1949, pp. 330-34. †Ibid., pp. 339-40.

802 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES for borrowing is an executive act in one aspect of the case, but in this article it is not proposed that the power of the executive to borrow is to the unfettered by any law that is to be made by Parliament. This article specifically says that the borrowing power of the executive shall be subject to such limitations as Parliament may by law prescribe. If Parliament does not make a law, it is certainly the fault of Parliament and I should have thought it very difficult to imagine any future Parliament which will not pay sufficient or serious attention to this matter and enact a law. Under the article 268 I even concede that there might be an Annual Debt Act made by Parliament prescribing or limiting the power of the executive as to how much they can borrow within that year. I therefore do not see what more is wanted by those who expressed their dissent from the provisions of article 268. It is of course a different matter for consideration whether we should have a further provision limiting the power of the Parliament to pledge the credit of the country. It seems to me that even that matter may be left to Parliament because it will be free for parliament to say that borrowing shall not be done on the pledging of certain resources of the country. I do not see how tins article prevents Parliament from putting upon itself the limitations with regard to the guarantees that may be given by Parliament for the ensurement of these loans or borrowings. I therefore think that from all points of view this article 268 as it stands is sufficient to cover all contingencies and I have no doubt about it that, as my friend Mr. Ananthasayanam Ayyangar said, we hope that Parliament will take this matter seriously and keep on enacting laws so as to limit the borrowing authority of the Union,—I go further and say that I not only hope but I expect that Parliament will discharge its duties under this article. Shri H. V. Kamath : Would not Dr. Ambedkar agree to the deletion of the words, “if any” ? The Honourable Dr. B. R. Ambedkar : I have been considering that, but I do not think that will improve matters, because the words are “as may from time to time”. Mr. President : I take it the amendment to substitute the words “Consolidated Fund of India” is accepted. Article 268, as amended, was’ added to the Constitution. *****