Para 3.13.5 — MSO

3.13.5 Under Article 293 of the Constitution, a State may borrow 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 an Act of the Legislature of the State. However, a State may not, without the consent of the Government of India, raise any loan if any part of a loan made to the State by the Government of India is still outstanding or if that Government has guaranteed the repayment of any loan. A State Government may also obtain loans from the Government of India subject to such conditions as may be laid down by or under any law made by Parliament. The Accountants General (A&E) maintain the detailed accounts of such loans and also arrange for payment of the principal and interest whenever due.