States can borrow from within India if :
Union Government agrees
Article 293(1) allows a State to borrow within the territory of India on the security of its Consolidated Fund, within limits fixed by the State Legislature.
Article 293(3) provides that a State may not raise any loan without the consent of the Government of India if any part of a loan made by the Union (or guaranteed by it) to that State is still outstanding. Since every State owes money to the Union, Union consent is in practice always needed; under Article 293(4) the Union may attach conditions to that consent.
Approval of the State Governor or of the State Finance Department does not satisfy this constitutional requirement; an outstanding Union loan is the reason consent is required, not a condition that by itself permits borrowing.
Hence, the answer is Union Government agrees.
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Article 312 of the Indian Constitution provides for .............
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The Governor appoints the Chief Minister of State according to the Article :
State services are :
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(1) Preamble of the Constitution
(2) Fundamental Rights
(3) Directive Principles of the State Policy
(4) Eleventh schedule of the Constitution
(5) Twelfth schedule of the Constitution
Choose the correct code :
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