Government Borrowing

According to Article 292 of the Constitution of India, the executive power of the alignment extends to borrowing upon the security of the Consolidated Fund of India within practically(prenominal) limits, if any, as may from sentence to time be furbish up by parliament by law. This has to be read with Entries 35 and 37 of List I of the Seventh Schedule which break up up parliament exclusive power to make laws with esteem to Public debt of the Union and foreign loans. harangue on the draft Article in the role congregation on 10 August 1949, one element dainty his intention to make sure that later on Parliament would devote greater tutelage to borrowing which enforce ominous obligations upon not only the present generation exclusively time to come generation also. Another member detailed further and express that Parliament should lay down in an Act all twelvemonth how much could be borrowed. soon enough another member felt that if no law is do specifying the li mits of borrowing it would be certainly the fault of Parliament. He added : I should have musical theme it very difficult to remember any future Parliament which will not render sufficient or upright attention to this matter and enact a law. He conceded that there might even be an Annual Debt Act made by Parliament prescribing or limiting the power of the executive director as to how much they can borrow within that year.

Audit declare on Public Debt For the first time a macro instruction refresh of the earthly concern debt of the Union judicature was move by the Comptroller and Auditor General of India (CAG) and the results of the review were bodied in h! is Report for the year ended 31 b locate 1987 (No. 10 of 1988). It covered analyses of deficits and debts, brought out the consequences of the increasing trends in them, and indicated the indigence for improvement in financial management. It also force attention to the fact that no ceiling on public debt had been prescribed. The take in was to highlight whether the debt management process has been carried out with callable move to economy and...If you want to get a complete essay, order it on our website: OrderCustomPaper.com

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