Under what circumstances can the Financial Emergency be proclaimed by the President of India? What consequences follow when such a declaration remains in force?
Introduction
Article 360 of the Indian Constitution empowers the President to proclaim a Financial Emergency.
Body
Circumstances for Proclamation
This can be done if the President is satisfied that India's financial stability or credit, or that of any part of its territory, is threatened.
Parliamentary Approval
The proclamation requires approval by both Houses of Parliament within two months by a simple majority.
Consequences of Financial Emergency
When in force, the Union can direct states on financial propriety, including reducing state government employees' salaries and allowances. The President can also direct a reduction in salaries of Union employees, including Supreme Court and High Court judges. All state money bills or financial bills can be reserved for the President's consideration.
Revocation
Once approved, it remains in force indefinitely until revoked by the President, with no maximum period prescribed.
Conclusion
Though never invoked, Article 360 is a crucial constitutional safeguard against severe financial crises.
148 words · target ~150
The question requires a descriptive explanation of the conditions for proclaiming a Financial Emergency and its subsequent effects.
Suggested structure
Introduction: Financial Emergency (Article 360)
Circumstances for Proclamation
Parliamentary Approval
Consequences of Financial Emergency
Revocation
Conclusion
Key points
President can proclaim Financial Emergency under Article 360 if satisfied that financial stability or credit of India or any part thereof is threatened.
Proclamation must be approved by both Houses of Parliament within two months by a simple majority.
Union can issue directions to states regarding financial propriety, including reduction of salaries and allowances of state government employees.
President can direct reduction of salaries and allowances of all or any class of persons serving the Union, including Supreme Court and High Court judges.
All money bills or other financial bills passed by state legislatures can be reserved for the President's consideration.
Once approved by Parliament, it remains in force indefinitely until revoked by the President; no maximum period is prescribed.
Common mistakes
Confusing Financial Emergency with National or State Emergency provisions.
Omitting the requirement for parliamentary approval or its specific timeframe.
Incomplete listing of consequences, especially regarding the impact on salaries of judges and state financial bills.
Not mentioning Article 360 of the Constitution.
Difficulty: Medium — Requires precise recall of specific constitutional provisions (Article 360) and its detailed implications, covering both the conditions for proclamation and the comprehensive list of consequences, differentiating it from other emergency types.