Adjustment in Respect of Certain Expenses and Pensions
Where under the provisions of this Constitution the expenditure in respect of any matter is charged on the Consolidated Fund of India or the Consolidated Fund of a State, but the Union or the State, as the case may be, has incurred, or is likely to incur, expenditure in respect of that matter for the purposes of the Union or the State, as the case may be, there shall be paid to the Union or the State... such contribution in respect of the expenditure so incurred as may be agreed, or as may, in default of agreement, be determined by an arbitrator to be appointed by the Chief Justice of India.
What this Article actually means
How it shows up in everyday life
This Article addresses a genuinely practical fiscal administration problem — ensuring costs are fairly shared even when the formal budgetary 'charge' doesn't perfectly match where the real benefit or expense actually falls, with a built-in dispute-resolution mechanism (arbitration via a Chief-Justice-appointed arbitrator) if the governments can't agree.
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Quick answers about Article 290
What happens if the Union and a state can't agree on how to split such costs?
The text above reproduces Article 290 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.