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
Famous quotes containing the words financial, emergency and/or article:
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)
“War-making is one of the few activities that people are not supposed to view “realistically”; that is, with an eye to expense and practical outcome. In all-out war, expenditure is all-out, unprudent—war being defined as an emergency in which no sacrifice is excessive.”
—Susan Sontag (b. 1933)
“As compared with the college politician, the real article seems like an amateur.”
—Woodrow Wilson (1856–1924)