Section 3. Ceiling on Government Guarantees

(1) The total outstanding Government guarantees as on the first day of April of any year shall not exceed 1 percent of the Gross State Domestic Product estimated for the year. (2) The total fresh Government guarantees given in a year shall not exceed 0-03 percent of Gross State Domestic product estimated for the years; Provided that under the extreme exigencies and occurrence of natural calamities of the order which require the Government to take immediate fiscal policy measures, the Government may exceed the ceiling prescribed under sub-section (1) and (2).