NationalThursday, 25 June 2026·The Hindu - National
Article 299 and PM SHRI: Kerala MoU dispute raises constitutional and financial rules issue
A Kerala PM SHRI MoU dispute highlights Article 299, Rules of Business, and the need for Finance Department approval for spending.
Key highlights
Direct fact
On 16 October 2025, an MoU on the PM SHRI scheme was signed between the Education Department, Government of Kerala, and the Education Department, Government of India, and the dispute in June 2026 has brought Article 299 of the Constitution into focus.
Key specifics
- Article 299 governs legally binding contracts of the Union and State governments.
- The PM SHRI scheme in this case requires 40% of the expenditure to be borne by the State government.
- The MoU date mentioned in the report is 16/10/2025.
- Rule 10 of the Rules of Business in Government requires Finance Department consent for decisions with financial repercussions.
- Article 166 is cited for Kerala’s Rules of Business and Cabinet decision-making.
Exam lens
TNPSC polity question angle: Article 299, Article 166, Rules of Business, and PM SHRI. One-liner: identify which constitutional provision makes State contracts valid and why Finance Department approval matters for schemes with 40% State share.