The Sikkim Ceiling on Government Guarantees Act, 2000
The Sikkim Ceiling on Government Guarantees Act, 2000
The Sikkim Ceiling on Government Guarantees Act, 2000, is a financial regulation enacted by the state government of Sikkim to manage fiscal risk and ensure responsible governance. Its primary purpose is to restrict the state government from providing financial guarantees for loans taken by private individuals, institutions, or companies. By prohibiting such guarantees, the Act protects the state's Consolidated Fund from potential liabilities arising from private defaults. Additionally, the Act mandates that when the government does issue guarantees, it must charge a minimum commission of one percent, which cannot be waived, ensuring the state receives compensation for the risk it undertakes.
- 1. Short title and Commencement
- 2. Issue of Rs. 54,284/- out of the Consolidated Fund of the State of Sikkim for the Financial Year ended on 31st March 1998
- 3. Issue of Rs. 96,97,518/- out of the Consolidated Fund of the State of Sikkim for the Financial Year ended on 31st March 1997
- 4. Prohibition
- 5. Notwithstanding any thing contained in any other law , no Government guarantee shall be given in respect of a loan of any private individual, institution or company.
- I. THE SCHEDULE
PDF: pending for this language.