Question 361
Which article of the Constitution of India deals with financial emergency?
- AOption (a)
352
- BOption (b)
356
- COption (c)
360
- DOption (d)
365
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Correct answer
360
Why this answer is correct
The correct answer is 360.
Key Points
- Article 360 of the Constitution of India provides the framework for the proclamation of a Financial Emergency by the President if the financial stability or credit of India is threatened.
- The proclamation must be approved by both the Lok Sabha and the Rajya Sabha within two months from its date of issuance by a simple majority.
- Once the Parliament approves the proclamation, it continues indefinitely until the President revokes it through a subsequent proclamation; unlike other emergencies, it does not require periodic legislative renewal.
- During the operation of a Financial Emergency, the Union Executive can issue directions to states to observe canons of financial propriety and may require all Money Bills to be reserved for the President’s consideration.
- The President is empowered to order the reduction of salaries and allowances for all classes of persons serving the Union or the States, including the Judges of the Supreme Court and High Courts.
- Historically, a Financial Emergency has never been declared in India, despite the country facing a severe Balance of Payments crisis in 1991.
Additional Information
- Emergency Framework:
- The Emergency Provisions are detailed in Part XVIII of the Constitution, specifically spanning from Article 352 to 360, and are largely inspired by the Government of India Act, 1935.
- Constitutional Safeguards:
- The 44th Amendment Act of 1978 introduced significant checks, ensuring that the President's satisfaction for declaring an emergency is subject to judicial review.
- Classification of Emergencies:
- Apart from the financial type, the Constitution identifies two other categories: National Emergency (declared under Article 352 for war or rebellion) and President’s Rule (declared under Article 356 for the failure of constitutional machinery in states).
- Impact on Fundamental Rights:
- While Articles 358 and 359 deal with the suspension of Fundamental Rights during emergencies, Article 20 (protection in respect of conviction) and Article 21 (protection of life and liberty) cannot be suspended even during a crisis.