Under what circumstances can the financial emergency be proclaimed by the president of india? What consequences follow when such a declaration remains in force? (10)
Answers
Financial Emergency provided under Article 360. It provides that if the President is satisfied that the financial stability or credit of India or any of its part is in danger, he may declare a state of Financial Emergency.
The proclamation of Financial Emergency may have the following consequences:
1. The Union Government may give direction to any of the States regarding financial matters.
2. The President may ask the States to reduce the salaries and allowances of all or any class of persons in government service.
3. The President may ask the States to reserve all the money bills for the consideration of the Parliament after they have been passed by the State Legislature.
4. The President may also give directions for the reduction of salaries and allowances of the Central Government employees including the Judges of the Supreme Court and the High Courts.