Para 12.4.4 — CAM

12.4.4 Statement No. 4 (IGAS-1) Guarantees Given by the Union Governments 12.4.4.1 Government gives guarantees on behalf of various PSUs, Banks and other institutions for repayment of their borrowings and payment of interest thereon, repayment of their share capital and payment of minimum dividend, and payment against supplies of materials and equipment on credit basis, etc. These guarantees constitute Government’s contingent liabilities that have to be discharged from the CFI in case of any default by the beneficiaries of such guarantees. As per requirements of the FRBM Rules, a new format for disclosing guarantees given by the Government has been introduced in the Finance Accounts for the year starting from 2004-05. This statement is prepared in crores of Rupees upto two decimals. At the outset, the purposes for which Government stands guarantee are stated. The maximum amount of guarantee for which Government had entered into agreements and sums guaranteed outstanding at the end of the year are mentioned in crores of Rupees. The Ministry/ Department-wise details of guarantees under 6 different classes are given.