Constitution of India · Section Article 292
Borrowing by the Government of India
Article 292 — Borrowing by the Government of India
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.
Plain English Summary
This article explains the legal framework under which the Government of India can borrow money. It states that the government can borrow funds only if Parliament has previously set specific limits and conditions for borrowing and guarantees through a law.
Key Points
- Borrowing power is restricted by limits set by Parliament through law.
- The borrowing must be done upon the security of the Consolidated Fund of India (the main government account).
- Guarantees related to borrowing are also subject to specific limits fixed by Parliament.
Why It Matters
This article ensures that the borrowing power of the central government is controlled and regulated by the legislative body (Parliament), ensuring financial accountability.
Landmark Judgements
No major landmark judgements.