Part XVIII: Emergency Provisions

Article 354: Application of Provisions Relating to Distribution of Revenues During Emergency

Original Article:

Clause (1): The President may, while a Proclamation of Emergency is in operation, direct that Articles 268 to 279, which govern the distribution of revenues between the Union and the States, shall operate with specified exceptions or modifications as required for the period of emergency, not exceeding the financial year in which the Proclamation ceases to operate.

Clause (2): Such orders must be laid before Parliament for review as soon as possible after issuance.

Explanations:

Article 354 empowers the President to modify revenue distribution between the Union and States during emergencies. This provision ensures the central government has financial flexibility to address national crises effectively while maintaining parliamentary oversight.

Clause-by-Clause Explanation:

Clause (1): Presidential Authority During Emergencies

The President can issue orders to adapt Articles 268 to 279 for emergency needs, ensuring resource allocation aligns with national priorities during crises.

Clause (2): Parliamentary Oversight

Parliament’s review of such orders ensures accountability and transparency, preserving democratic values even during emergencies.

Historical Context:

Article 354 reflects India’s federal structure, emphasizing financial cooperation during crises. Historical emergencies, such as wars and natural disasters, underline the importance of this provision in mobilizing resources effectively.

Real-Life Example:

During the 1971 Indo-Pak war, central control over revenue helped fund defense and relief efforts efficiently, showcasing the significance of Article 354’s financial provisions.

References and Related Provisions:

Article 354 aligns with Articles 268 to 279, which regulate revenue distribution. It complements Articles 353 and 355, forming a comprehensive framework for governance during emergencies.