Government Borrowing

According to Article 292 of the Constitution of India, the executive power of the alliance extends to borrowing upon the security of the Consolidated Fund of India within frequently(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 jibe up parliament exclusive power to make laws with deference to Public debt of the Union and foreign loans. harangue on the draft Article in the fragment congregation on 10 August 1949, one portion dainty his intention to make sure that later on Parliament would devote greater management to borrowing which impose ominous obligations upon not only the present generation plainly time to come generation also. Another member dilate further and express that Parliament should lay down in an Act all twelvemonth how much could be borrowed. hitherto another member felt that if no law is do specifying the limits o f borrowing it would be certainly the fault of Parliament. He added : I should have musical theme it very difficult to call back any future Parliament which will not have 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 subject on Public Debt For the first time a macro instruction refresh of the earthly concern debt of the Union judicature was try by the Comptroller and Auditor General of India (CAG) and the results of the revi ew were corporate in his Report for the yea! r ended 31 run into 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 consider for improvement in financial management. It also force attention to the fact that no ceiling on public debt had been prescribed. The learn was to highlight whether the debt management process has been carried out with callable get wind to economy and...If you want to get a complete essay, mark it on our website: BestEssayCheap.com

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