Para 10.17 — MSO

CONTINGENT LIABILITIES ON ACCOUNT OF GUARANTEES GIVEN BY GOVERNMENT 10.17 Under Article 292 and 293 of the Constitution, the Union and the States are empowered to give guarantees in respect of loans raised by others within such limits as may be fixed from time to time by Act of Parliament or, as the case may be of the Legislature of the State. Such guarantees constitute contingent liabilities of Government and it is an essential duty of the Accountant General (Accounts and Entitlement) to keep a close watch over the guarantees given by the State to see that limits prescribed by the Legislature are not exceeded. It is necessary that the total amount of such guarantees as also the amount of guarantees invoked during the year should be mentioned in the report on the accounts of the State. It should also be ascertained that any general or special orders issued by the Government for levying a commission for giving a guarantee are duly observed.