Article 293(1) states that "the executive power of a State extends to borrowing within the territory of India upon the security of the Consolidated Fund of the State within such limits, if any, as may from time to time be fixed by the Legislature of such State by law and to the giving of guarantees within such limits, if any, as may be so fixed." Article 293(2) specifies that "The Government of India may, subject to the provisions of any law made by Parliament, make loans to any State or give guarantees in respect of loans raised by any State..." This clause explicitly grants the power to the Central Government to extend loans to states.