NCLAT: Consideration of Debt Restructuring by Lenders Doesn’t Bar Member from Initiating Proceedings  ||  Delhi High Court: In Matters of Medical Evaluation, Courts Should Exercise Restraint  ||  Delhi HC: Any Person in India Has Right to Legally Import Goods from Abroad and Sell the Same  ||  Delhi HC: Waiver to Section 12(5) of Arbitration Act to be Given Once Tribunal is Constituted  ||  Supreme Court Has Asked States to Regularise Existing Court Managers  ||  SC: Union & States to Create Special POSCO Courts on Top Priority  ||  SC Upholds Authority of CERC to Award Compensation for Delays  ||  SC: Arbitral Tribunal Has Discretion to Include in Sum Awarded, Interest at Rate as it Deems Reasonab  ||  SC: Cannot Use Article 142 to Frame Guidelines on Judicial Recusal  ||  SC: Satisfaction Recorder in One EP Won’t Affect Subsequent EPs for Future Breaches    

Central Government decides to simplify the consent mechanism for Open Market Borrowings (OMBs) under Article 293(3) of Constitution of India for raising OMBs by the States- (Press Information Bureau) (18 Aug 2016)

MANU/PIBU/0704/2016

Banking

In the spirit of Co-operative federalism and in order to bring-in the transparency and predictability in the Open Market Borrowings (OMBs) by the States, the Central Government has decided to simplify the consent mechanism for OMBs under Article 293 (3) of the Constitution.

Till now, States were required to obtain quarterly consent from the Central Government for raising OMBs within the Net Borrowing Ceiling (NBC) fixed for each of the States as per the formula prescribed by the Fourteenth Finance Commission (FFC). The simplified mechanism would, however, allow the States to prepare their borrowing calendar for the first nine months and seek one-time consent for raising OMBs during the first nine months of the Financial Year. Thereafter, based on the assessment of details of borrowings and repayment thereof (actuals for first 3 quarters and estimates for last quarter), consent for the first two months of Fourth Quarter will be given. The consent for the last month i.e. March will be given based on the re-assessment of actual borrowings for the first 11 months by the States.

Thus, simplified procedure will ensure that consent under Article 293(3) is issued only on three occasions during the year, one in the month of April for first nine months after fixation of borrowing ceilings, second in the month of December for the first two months of fourth quarter and last in month of March after the assessment of actual borrowings by the States.

Tags : OPEN MARKET BORROWINGS   CONSENT MECHANISM   SIMPLIFICATION  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved