The government can borrow money or receive grants, but it must follow rules set by Parliament. Any loan or grant agreement must be approved by Parliament to ensure transparency and accountability. This means the government cannot secretly take loans or accept aid without public oversight. You have the right to expect that borrowed money is used for public benefit and reported properly. Parliament can also set limits on how much the government can borrow to protect the country from too much debt.

Subject to the provisions of this Constitution and with the approval of the Government, a local government may, for the carrying out of its functions and services, borrow money or accept and use any grant or assistance as Parliament shall prescribe.

Article 195 allows local governments to borrow money and receive grants or assistance with government approval and as prescribed by Parliament.

Article 195: Local Government Loans and Grants

Finances of local governments

195.Loans and grants

Summary