Part XVIII: Emergency Provisions

Article 360: Provisions as to Financial Emergency

Original Article:

Clause (1): The President may declare a financial emergency if India's financial stability or credit is threatened.

Clause (2): Proclamation ceases after two months unless approved by Parliament, with provisions for revocation or variation.

Clause (3): Union executive authority extends to ensuring financial propriety in States.

Clause (4): The President may direct salary reductions and reserve Money Bills for approval to manage financial stability.

Explanations:

Article 360 empowers the President to declare a financial emergency to safeguard India's financial stability and credit, allowing decisive actions to manage economic crises.

Clause-by-Clause Explanation:

Clause (1): Declaration of Financial Emergency

The President declares a financial emergency if satisfied of a credible threat to India's financial stability or credit.

Clause (2): Parliamentary Oversight

The proclamation must be approved by both Houses of Parliament within two months, ensuring legislative oversight.

Clause (3): Union's Financial Authority

During the emergency, the Union can direct States to follow financial propriety to ensure uniformity and stability.

Clause (4): Financial Control Measures

The President may direct salary reductions and reserve State Money Bills for approval to conserve resources.

Historical Context:

Although Article 360 has never been invoked, its inclusion reflects the framers' foresight in preparing for potential financial crises.

Real-Life Examples:

• No financial emergency has been declared in India, highlighting its reserved use for extreme scenarios.

References and Related Provisions:

Article 360 is part of the Emergency Provisions, emphasizing financial stability as a cornerstone of national security.