Question

explain any two effect of financial emergency​

Answer 1

The third and final type of emergency is known as the financial emergency.

The provisions for declaring a financial emergency are mentioned in Article 360 of the Indian Constitution.

According to this provision, the president can declare a proclamation for financial emergency if he is satisfied that a situation has arisen which can affect the financial stability or the credit of India or any part of the Indian Territory.

Just like we talked about in President's Rule, the thirty eight Amendment Act of 1975 provided that the satisfaction of the president about such a situation is final and conclusive.

This satisfaction, which acts as the grounds of financial emergency, cannot be challenged in a court of law.