Article 293 of Constitution of India – Borrowing by States
Article 293 of Constitution of India deals with Borrowing by States
Original Text of Article 293 of Constitution of India
(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.
Questions related to Article 293 of Constitution of India
Article 293 deals with the borrowing powers of State Governments and the conditions under which they can borrow money within or outside India, under the framework of the Constitution of India.
Yes, as per Article 293(3), if a state has an existing loan from the Centre, it must get the Centre’s consent before raising any new loan, as explained in Indian Kanoon.
Article 293, part of the Articles of Indian Constitution, requires prior approval from the Union for further borrowing when a state is indebted to the Centre, ensuring checks on excessive borrowing.
Absolutely. Article 293 plays a crucial role in managing Centre-State financial relations and in maintaining macroeconomic stability under the Indian Constitution.
Platforms like Indian Kanoon provide detailed legal interpretations, case laws, and related provisions concerning Article 293 of the Constitution of India.
For Further Reference:
Other Related Links:
