Departmental organisations do not have right to borrow funds from outside.

Question

Justify the following statement:

Departmental organisations do not have right to borrow funds from outside.

Answer 1

1. Department organisations is financed by annual appropriation from the treasury and its revenue also goes into Treasury. 

2. This enterprise cannot borrow money from the public as enterprise is financed by the government and hence the government controls its affairs. Hence, answerable for its performance to the Parliament. 

3. Government consent is required to borrow from public, if need arises. 

4. Thus, Departmental organisations have no right to borrow funds from outside.