The restrictions imposed under Article 293 of the Constitution on State borrowing powers, though constitutionally valid, may hinder fiscal autonomy of States and disrupt cooperative federalism. Discuss in the light of recent developments. (Answer in 250 words)

Article 293 of Constitution limits borrowing power of the state - limited to stake's territory, on consolidated fund of state collateral and Centre's permission in case of pending debt. Constitutional Validity: Fiscal health of the states, Centre's regulatory to prevent financial emergency against market shocks. Hindrance to fiscal autonomy: States as growth engine require foreign borrowing, (eg: Gujarat from Japan). Inter-state borrowings for regional balance (eg: developed Kerala, T.N. to less invested in Bihar, Madhya Pradesh). Demand of removal of Centre's permission (T.N., Maharashtra). Centre's under interference violately principle of subsidiarity (and ARC) (Eg: PM SHART Punjab v/s Centre). Perception of cultural mapping (Eg: NEP and anti-Hindi chauvinism in south India). Poor fiscal discipline if Centre exceding fiscal autonomy (Eg: NITI Aayog fiscal health index). [Responsibility without fiscal powers - (Eg: SDGs goals to be realised with more fiscal autonomy to the states. Suggested balanced way: Constitutional amendment of Article 293 for more fiscal autonomy to the states. Foreign borrowings with ABB facilitation. Apex body like Finance Commission AABR to permit more devolution to the states (49/75 in ISFC). Strengthen GST Council ASAA for Cooperative fiscal federalism.

Inter-state borrowings for regional balance (eg: developed Kerala, T.N. to less invested in Bihar, Madhya Pradesh). Demand of removal of Centre's permission (T.N., Maharashtra). Centre's under interference violately principle of subsidiarity (and ARC) (Eg: PM SHART Punjab v/s Centre). Perception of cultural mapping (Eg: NEP and anti-Hindi chauvinism in south India). Poor fiscal discipline if Centre exceding fiscal autonomy (Eg: NITI Aayog fiscal health index). Disruption to cooperative federalism: Centre's under interference violately principle of subsidiarity (and ARC) (Eg: PM SHART Punjab v/s Centre) Perception of cultural mapping (Eg: NEP and anti-Hindi chauvinism in south India) Poor fiscal discipline if Centre exceding fiscal autonomy (Eg: NITI Aayog fiscal health index). Best to GEDT in Punjab, West Bengal

Suggested balanced way: Constitutional amendment of Article 293 for more fiscal autonomy to the states. Foreign borrowings with ABB facilitation. Apex body like Finance Commission AABR to permit more devolution to the states (49/75 in ISFC). Strengthen GST Council ASAA for Cooperative fiscal federalism. The fiscal discipline under FROM Act is necessary for sound health. Centre should stabilise macroeconomy and real allocatn of value should be given to state as per Ppeople at subsidiarity (2nd ARC).