What does Article 293 of the Indian Constitution state?
Article 293 of the Indian Constitution deals with borrowing by States. It allows the executive power of a State to borrow money within the territory of India upon the security of the Consolidated Fund of the State, within limits set by the state legislature. The article also allows the Government of India to make loans to any State or give guarantees in respect of loans raised by any State, subject to conditions laid down by Parliament. However, a State cannot raise a loan without the consent of the Government of India if there is still an outstanding loan made by the Government of India or its predecessor, or if a guarantee has been given by the Government of India or its predecessor.