(1) Subject to the provisions of this
article, the executive power of a State extends to borrowing 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 the Legislature of such State by law and to the giving of
guarantees within such limits, if any, as may be so fixed.
(2) The Government of India may, subject to such conditions as may be
laid down by or under any law made by Parliament, make loans to any
State or, so long as any limits fixed under article 292 are not
exceeded, give guarantees in respect of loans raised by any State, and
any sums required for the purpose of making such loans shall be
charged on the Consolidated Fund of India.
(3) A State may not without the consent of the Government of India
raise any loan if there is still outstanding any part of a loan which
has been made to the State by the Government of India or by its
predecessor Government, or in respect of which a guarantee has been
given by the Government of India or by its predecessor Government.
(4) A consent under clause (3) may be granted subject to such
conditions, if any, as the Government of India may think fit to