Home The Constitution Part XII Article 292

Art. 292 Part XII: Finance, Property, Contracts and Suits

Borrowing by the Government of India

Exact text — Constitution of India

The executive power of the Union extends to borrowing upon the security of the Consolidated Fund of India within such limits, if any, as may from time to time be fixed by Parliament by law and to the giving of guarantees within such limits, if any, as may be so fixed.

In Plain English

What this Article actually means

This Article gives the Union government power to borrow money (backed by the Consolidated Fund of India) and to give financial guarantees, subject to whatever limits Parliament chooses to fix by law — notably, unlike states (Article 293), the Union's borrowing isn't subject to any other government's consent requirement.

Why This Matters To You

How it shows up in everyday life

This is the constitutional basis for the central government's borrowing (like issuing government bonds) to fund its budget deficit — a power essentially unconstrained except by whatever limits Parliament itself chooses to impose (like the Fiscal Responsibility and Budget Management Act's targets).

Read alongside this one

Art. 293 — Borrowing by States

Frequently Asked

Quick answers about Article 292

Does the Union need anyone's permission to borrow money?

Only whatever limits Parliament itself has set by law (like fiscal responsibility legislation) — unlike states, the Union doesn't need any other government's consent to borrow.

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The text above reproduces Article 292 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.