Financial Emergency - Article 360

Financial Emergency - Article 360

➤ Article - 360 (1) - President can proclaim financial emergency. If he is satisfied that the financial stability or goodwill of India or any part thereof is in jeopardy. Keep in mind that the satisfaction of the President here means the satisfaction of the Union Cabinet. But this announcement does not require the written advice of the Cabinet.

➤ This proclamation by the President can be withdrawn or changed at any time by a subsequent proclamation. Such declaration does not require any parliamentary approval. - Article 360 ​​(2)

Period of Proclamation

➥ Proclamation of financial emergency remains in force for 2 months without Parliament's approval. But, if the Parliament approves this proclamation two months before a simple majority, it will remain in force for an indefinite period. Since it is for undesired period, it does not require repeated approval.

Note: - The maximum time limit for financial emergency has not been set in the constitution.

Conditions at the time of approval If the Lok Sabha is dissolved at the time of proclamation or The Lok Sabha gets dissolved (without approval) within a period of two months and If the resolution is approved by the Rajya Sabha ....... then

                                    ⇩

If the new Lok Sabha passes a resolution within 30 days in its first meeting, then the state of emergency will remain in force, and ..... If the resolution is not passed, it will not remain in force after the end of 30 days.

Effect of Proclamation

                                                        

Article-360(3):- The executive authority of the Union shall extend to the giving of;

  (a) directions to any state to observe such canons of financial propriety as may be specified in the directions, and

 (b) To the giving of such other directions as the President may deem necessary and sufficient for the purpose.

Article-360(4):- (a)Any such direction may include— (1) a provision requiring the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of a state;

(2) A provision requiring all Money Bills or other Bills to which the provisions of article 207 apply to be reserved for the consideration of the President after they are passed by the Legislature of the State;

(b) The President directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the Union including the Judges of the Supreme Court and the High Courts.

Note: - Financial crisis occurred in India once (in 1991). But yet not even a financial emergency has been imposed.

44th constitution amendment (1978) and article - 360 Article 360 ​​(2) was amended. Prior to this amendment, the provisions of Article 352 were applicable to the declaration of financial emergency. This amendment has abolished the relationship of Article 352 with it. According to the amended provision, financial emergency may remain in force indefinitely after approval of Parliament. Whereas in order to carry forward the declared emergency under Article 352, approval of Parliament is required after every 6 months. ⇒ After this amendment, the President's satisfaction (behind the proclamation) can be judicially reviewed. Keep in mind that this satisfaction of the President was excluded from judicial review in the 38th Constitutional Amendment (1975).