Finance, Property, Contracts
(1) Parliament provides annual grants-in-aid (varying by state) from the Consolidated Fund of India to states needing assistance - including mandatory grants for Scheduled Tribes welfare/Scheduled Areas administration schemes, and specific historical Assam tribal-area grants. (1A) Special apportionment rules apply if an autonomous State is formed under Article 244A. (2) Until Parliament legislates, the President exercises this power by order, but must consider Finance Commission recommendations once one exists.
Beyond the general tax-revenue-sharing formula (Article 270), this provides a separate, needs-based grant mechanism specifically to help less financially well-off states, with a special mandatory component ensuring funding for Scheduled Tribes welfare and Scheduled Areas administration.
This is a key funding source for targeted development schemes benefiting Scheduled Tribes and Scheduled Areas in various states, distinct from the general tax-revenue-sharing formula that applies to all states more uniformly.