Chapter II - Borrowing
Article
292 Borrowing by the Government of India
The executive power
of the Union extends to borrowing upon the security of the
Consolidated Fund of India within such limits, if any, as may from
time to time be fixed by Parliament by law and to the giving of
guarantees within such limits, if any, as may be so fixed.
Article
293 Borrowing by States
(1) Subject to the provisions
of this article, the executive power of a State extends to borrowing
within the territory of India upon the security of the Consolidated
Fund of the State within such limits, if any, as may from time to
time be fixed by the Legislature of such State by law and to the
giving of guarantees within such limits, if any, as may be so
fixed.
(2) The Government of India may, subject to such
conditions as may be laid down by or under any law made by
Parliament, make loans to any State or, so long as any limits fixed
under article 292 are not exceeded, give guarantees in respect of
loans raised by any State, and any sums required for the purpose of
making such loans shall be charged on the Consolidated Fund of
India.
(3) A State may not without the consent of the Government
of India raise any loan if there is still outstanding any part of a
loan which has been made to the State by the Government of India or
by its predecessor Government, or in respect of which a guarantee has
been given by the Government of India or by its predecessor
Government.
(4) A consent under clause (3) may be granted
subject to such conditions, if any, as the Government of India may
think fit to impose.
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