While a discussion on whether Financial Emergency under Article 360 of The Constitution of India should be declared is making rounds and with the country going into Lockdown for 21 days, it is time to visit the salient features of the Financial Emergency Provision.
- The Financial Emergency is one of the three types of Emergency that has provided in the Constitution of India. While the National Emergency can be invoked by the Article 352 and the State Emergency can be invoked by Article 356, the Financial Emergency is enshrined in Article 360 of our Constitution.
- Once the Financial Emergency is declared, the President of India is empowered with the power to reduce the salaries of all class of Government employees, be it State or Central. He can even reduce the salaries of the Supreme Court Judges when this Emergency is in force.
- Also any Finance Bill passed by the State comes under the consideration of the President. Moreover the President is empowered to give directions in financial matters to state.
- The President can declare the Financial Emergency if he is satisfied that the Financial stability or Credit of the Country is threatened {In my opinion, this clause is always ambiguous and sooner or later is going to give trouble just like the infamous “internal disturbance” clause of Article 352 }
- Generally, once declared, this Emergency will be in force for two months unless, before the expiry of those two months, it is approved by both houses of the Parliament.
- The most important fact to note is that the Financial Emergency has never been declared in India so far. Whether Corona will create a Constitutional History? We will have to wait and see….
Image Credit: Photo by Fabian Blank on Unsplash
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