CONSTITUTIONAL ECONOMICS IN INDIA: A SURVEY OF INDIAN CONSTITUTION

Constitutional Economics

Abstract

Constitutional Economics determines the national character of the economic life with corresponds to fundamental principles of Justice. The Constitution of India, especially, Preambular ideas along with Directive Principles of State Policy carries the aspirations of distributive justice including the socio-economic and political justice. Entry 35 carries the provision for managing the public debt, Entry 36 related to the foreign exchange, Entry 37 with respect to the foreign loans, Entry 38 contains the Reserve Bank of India i.e. central monetary authority, Entry 41 talks about the foreign trade, Entry 45 carries Banking, Entry 46 and 48 highlight the components of capital market, Entry 47 carries Insurance in the Union List, almost similar macroeconomic framework available for the States in the State List  in the Seventh Schedule and under the scope of the Article of 246 of the Constitution. The Entry 20 of the Concurrent list contains the planning related to social and economic life of the contrary. The allocation and distribution of the societal resources shall rest upon the Finance Commission under Article 280 of the Constitution. In the light of the Article 112, we can call that the Parliamentary control financial matters. Moreover, the Constitution of India if we go deeper into the Constituent Assembly debate find that macroeconomic framework philosophy is blending of ancient Indian political economic ideas and both western modern Classical ideas and Keynesian activism.