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For a Better India
Updating protected services for a safer Bharat. Jai Hind.
Finance, Property, Contracts
The Union's executive power extends to borrowing on the security of the Consolidated Fund of India, within limits (if any) Parliament fixes by law, and giving guarantees within limits Parliament similarly fixes.
This is the constitutional basis for the central government's ability to take on public debt - borrowing against the government's own revenue as security - subject to whatever borrowing limits Parliament chooses to set through ordinary legislation.
This is why the Union government issues government bonds and other debt instruments to raise money, and why Parliament can, if it chooses, legislate a specific ceiling on how much the government is allowed to borrow.