Which one of the following is true about the borrowing power of the st

1.	Which one of the following is true about the borrowing power of the state?1. It cannot borrow from outside India.2. Subject to specific conditions, the State shall have the right to borrow from the territory of India itself, against the security of the revenue of the State.1. Only 12. Both 1 and 23. Only 24. None of 1 and 2
Answer» Correct Answer - Option 2 : Both 1 and 2 The correct answer is Both 1 and 2. According to Article 293 of the Indian Constitution: Borrowing by States subject to the provisions of this article, the executive power of a State extends to borrowing within the territory of India. The Government of India may, subject to such conditions as may be laid down by or under any law made by Parliament, make loans to any State. A State may not without the consent of the Government of India raise any loan if there is still outstanding any part of a loan that has been made to the State by the Government of India. Hence, statements 1 and 2 both are correct.

Which one of the following is true about the borrowing power of the state?1. It cannot borrow from outside India.2. Subject to specific conditions, the State shall have the right to borrow from the territory of India itself, against the security of the revenue of the State.1. Only 12. Both 1 and 23. Only 24. None of 1 and 2

Answer» Correct Answer - Option 2 : Both 1 and 2

The correct answer is Both 1 and 2.

According to Article 293 of the Indian Constitution:
1. Borrowing by States subject to the provisions of this article, the executive power of a State extends to borrowing within the territory of India.
2. The Government of India may, subject to such conditions as may be laid down by or under any law made by Parliament, make loans to any State.
3. A State may not without the consent of the Government of India raise any loan if there is still outstanding any part of a loan that has been made to the State by the Government of India.
Hence, statements 1 and 2 both are correct.