Constitution Section 292 — Borrowing by the Government of India

Part XII — FINANCE, PROPERTY, CONTRACTS AND SUITS — CHAPTER II.—BORROWING

Constitutional

Summary

The Union government has the authority to borrow money using the Consolidated Fund of India as security, but only within any limits that Parliament sets through law. It can also give financial guarantees, again only within any limits that Parliament may set.

Official Text

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.

Related Judgments

  • HARI KRISHNA BHARGAV vs UNION OF INDIA AND ANOTHER — Supreme Court of India (1965)
  • THE SECRETARY TO GOVT. OF KERALA, IRRIGATION DEPARTMENT AND OTHERS vs JAMES VARGHESE AND OTHERS — Supreme Court of India (2022)
  • SAMARESH BOSE AND ANR. vs AMAL MITRA AND ANR — Supreme Court of India (1985)
  • RAM KRISHNA RAMNATH AGARWAL OF KAMPTEE vs SECRETARY, MUNICIPAL COMMITTEE, KAMP TEE — Supreme Court of India (1950)
  • THE AMALGAMATED COALFIELDS LTD. AND OTHERS vs THE JANAPADA SABHA, CHHINDWARA — Supreme Court of India (1961)
  • NITU SAIN! & ANR. vs MEENA CHAWLA & CO — Delhi High Court (2011)