Financial Emergency In India Article 360.

Financial Emergency  In India Article 360.

In recent times where the country is under lock down to fight epidemic disease Novel covid-19 and most of Economic activities are at hold. Country is looking at economic crises like never before. Question arises that weather we are looking at Financial Emergency.So in this current situation of Curfew/Lockdown , lets understand Financial Emergency  In India Article 360..

Types of Emergency  Recognized In Constitution of India. 

Constitution of India in chapter 39 ''THE EMERGENCY  PROVISIONS ''  Emergency is categorized under following three heads. 

National Emergency Article 352

State Emergency Article 356

Financial Emergency Article 360

 What Is Financial Emergency in India.
When there is threat to nation from financial situation or financial crises  it is a situation of financial emergency and then provisions of financial emergency can be proclaimed and then constitutional setup is altered for period of proclamation  to deal with the threats of financial crises and safeguard our nation.

Financial Emergency  In India Article 360.

Financial  Emergency is recognized under Article 360 of chapter 39 ''THE EMERGENCY  PROVISIONS ''  of Constitution  of India. 

Financial Emergency And Its Relation To Constitution Of Germany. 

Provisions of Emergency in Indian Constitution are adopted from Constitution of Germany. In simpler words provisions  of Emergency in Constitution of India are taken from Constitution  of Germany. 

 Financial Emergency in India how many times? 

No, financial emergency has never been imposed in India till date. 

Who Declare Financial Emergency In India. 

President of India can proclaim Financial Emergency  in India. On advice of Cabinet of India.

When Can Financial Emergency Declared In India. 

If President of India is satisfied that there is a situation that financial  stability or credit of India or part of India is threatened he may declare financial  emergency. 

Period For Which Financial Emergency Can Be Imposed. 

Once financial emergency is Proclaimed it will cease to operate after expiry of two months and if within two months it is approved by both houses of parliament there is no limitation on period of financial emergency. It will then be revoked by President by making a proclamation. 

Can Proclamation/Declaration  Of Financial Emergency Judicially Reviewed 

Yes, after 44th amendment of Indian Constitution decision of proclaiming financial emergency is under judicial review. Before 44th Amendment  decision of proclaiming financial emergency was not subjected to judicial review. 

Effects Of Financial  Emergency In India. 

President  can give any direction to states for maintaining financial stability. 

President can direct reduction of salary of all or any class of employs of state government. 

President  can also reduce salary of judges of Supreme Court , High Court and all people holding constitutional posts. 

All money/financial bill of states will be reserved for president. 

Powers of states will automatically  stand reduced during proclamation of Financial  Emergency. 

Executive  powers of Center Government  expands. 

Is India Looking At Financial Emergency. 

looking at financial reserve of RBI. Even though  central government has forced RBI to release one third of its reserve last year in favor of government a decision which was largely criticized by economists that it could lead to shortage of funds at time of emergency and allegations were leveled against government that it is misusing reserved funds of RBI. It will be safe to say that situation of financial  emergency has not arisen. 

Therefore,we are not looking at a situation of financial emergency in India.  Still provisions of financial emergency  in India Article 360. have always been criticized as they are capable of damaging federal structure of our country. Event of financial  emergency can threaten the very existence  of states itself as before 44th amendment it provided no safeguard against ill use of provision. After 44th amendment decision of  declaring financial  emergency is subjected  to judicial review but still the misuse of this provision of financial emergency can not be ruled out.