Article 264

Article 264 is a short interpretation clause placed at the start of Part XII, which deals with Finance, Property, Contracts and Suits. Constitutions often include such definition clauses to avoid confusion when a specific term is used repeatedly across several Articles. Since Part XII discusses financial relations between the Union and the States, including grants and revenue distribution, the framers wanted to make clear that 'Finance Commission' has one fixed meaning throughout the Part: the body created under Article 280, not any other financial committee or commission that might exist informally or under ordinary law.

• Myth: Article 264 creates or empowers the Finance Commission.
  Fact: It does not create the Commission; it only defines the term for use within Part XII. The actual Finance Commission is established under Article 280.