Article 292 of CoI : Article 292: Borrowing by the Government of India.

Explanation using Example

Example 1:

The Government of India decides to undertake a large infrastructure project to build new highways across the country. To fund this project, the government needs to borrow a significant amount of money. According to Article 292, the government can borrow this money by issuing bonds that are secured by the Consolidated Fund of India. However, the total amount that can be borrowed is subject to limits set by Parliament. In this case, Parliament has previously set a borrowing limit of ₹10 lakh crore for such projects. The government ensures that the total borrowing does not exceed this limit and proceeds to issue bonds to raise the necessary funds.

Example 2:

The Government of India wants to support a struggling public sector company by providing a financial guarantee to help it secure a loan from a bank. According to Article 292, the government can provide such guarantees, but only within the limits set by Parliament. Suppose Parliament has set a limit of ₹2 lakh crore for the total amount of guarantees that the government can provide in a fiscal year. The government checks its records and finds that it has already provided guarantees worth ₹1.5 lakh crore this year. Since the new guarantee of ₹50,000 crore for the public sector company will not exceed the remaining limit, the government proceeds to provide the guarantee, ensuring the company can secure the loan.