History & Civics
With reference to the Financial Emergency, explain the following:
(a) Circumstances surrounding the Proclamation of Financial Emergency
(b) Duration of such a Proclamation
(c) Consequences of Financial Emergency
President & Vice-President
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Answer
(a) Article 360 provides for a situation where the financial stability or credit of India is threatened. In that event the President may declare a Financial Emergency.
(b) The Proclamation should be approved by Parliament if it is to continue beyond a period of two months. It may be revoked by the President at any time. The Financial Emergency continues until it is revoked by the President of India. No use of this power has been made until now.
(c) The consequences of Financial Emergency are:
- The President is competent to reduce salaries and allowances of persons employed by Union Government, including the Judges of the Supreme Court and the High Courts.
- The Union Government may ask the States to reduce salaries and allowances of all public servants connected with the affairs of the States.
- All Money Bills, passed by the State Legislatures, may be reserved for the consideration of the President.
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(b) Duration of such Proclamation
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- has completed the age of thirty-two years, and
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Or
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