Financial Emergency Under Article 360
If the President is satisfied that there is an economic situation in which the financial stability or credit of India is threatened, he or she can declare financial emergency. Such an emergency must be approved by the Parliament within two months. It has never been declared. Such a situation had arisen but was avoided by putting the gold assets of India as collateral for foreign credit.
It remains enforced till the President revokes it.
In case of a financial emergency, the President can reduce the salaries of all government officials, including judges of the Supreme Court and High Courts. All money bills passed by the State legislatures are submitted to the President for his approval. He can direct the state to observe certain principles (economy measures) relating to financial matters.
The phrase Emergency period used loosely, when referring to the political history of India, often refers to the third and the most controversial of the three occasions.
Read more about this topic: State Of Emergency In India
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